There are more starter homes ready for people to buy, but they are not getting any cheaper. Still, there’s some increased interest among buyers. Pending sales of starter homes leaped around 10% in July from a year earlier, to their highest level since October 2022, according to a recently published analysis by Redfin. It shows “there may be signs of life for first-time homebuyers at the lower end of an otherwise sluggish market,” Redfin said.
To be clear, a pending home sale means a seller has received and accepted an offer on their home, but the deal hasn’t been closed. While pending home sales of starter homes rose, middle-tier homes, by contrast, fell 6.5% during the same period. Upper-priced pending home sales fell, too, by 10%. And pending home sales of luxury homes dropped close to 8%.
