Starter-Home Sales Rise as Supply Reaches Highest Level in Nearly a Decade
Starter-home sales saw a noticeable jump in October, rising 4.9% year-over-year as buyers responded to a growing number of listings and modest price growth. Mid-priced and high-priced homes also saw slight sales improvements after months of annual declines, marking a positive shift in activity across the market. These findings come from Redfin’s newest analysis of home prices and supply trends.
Redfin divides home sales into tiers based on the prices of homes sold over a rolling 12-month period. Starter homes fall within the 5th to 35th percentiles of the market, mid-priced homes between the 35th and 65th percentiles, and high-priced homes from the 65th to 95th percentiles. The latest report focuses on data collected from August through October 2025.
Metro-Level Highlights: Starter-Home Trends in October 2025
Price Growth
Starter-home prices rose the fastest in:
- Milwaukee: +10.8% to $221,615
- St. Louis: +10.0% to $150,747
- Detroit: +9.6% to $96,463
Prices dropped the most in:
- Jacksonville, FL: –4.4% to $247,678
- Austin, TX: –4.2% to $316,927
- San Antonio, TX: –3.7% to $216,409
Sales Activity
Starter-home sales increased the most in:
- San Francisco: +19.5%
- Providence, RI: +13.0%
- Portland, OR: +12.9%
Sales posted the biggest declines in:
- San Antonio, TX: –9.6%
- Detroit: –7.9%
- Nashville, TN: –5.5%
Active Listings
Inventory climbed sharply in:
- Las Vegas: +32.1%
- Newark, NJ: +30.3%
- San Diego, CA: +26.5%
Listings fell slightly in:
- San Francisco: –5.1%
- San Jose, CA: –1.7%
- Tampa, FL: –1.2%
New Listings
New listings rose the most in:
- Newark, NJ: +14.3%
- Detroit: +11.7%
- St. Louis: +10.1%
They dropped the most in:
- Jacksonville, FL: –15.0%
- San Antonio, TX: –12.2%
- Orlando, FL: –10.1%
Speed of Sales
Starter homes sold fastest in:
- Indianapolis: 22 days
- Warren, MI: 23 days
- Boston: 23 days
- Kansas City, MO: 23 days
They sold slowest in:
- Fort Lauderdale, FL: 114 days
- West Palm Beach, FL: 101 days
- Miami: 88 days
Housing Activity by Price Tier: October 2025
| Tier | Percentile Range | Median Sale Price | YoY Price Change | YoY Homes Sold | YoY Pending Sales | YoY Active Listings |
|---|---|---|---|---|---|---|
| Starter | 5%–35% | $260,000 | +2.0% | +4.9% | +5.5% | +13.0% |
| Mid | 35%–65% | $373,249 | +1.8% | +0.7% | +1.4% | +9.5% |
| High | 65%–95% | $577,593 | +3.1% | +0.8% | +1.1% | +8.3% |
Starter-home demand has consistently outpaced the rest of the market for more than a year. Pending sales rose 5.5%, making the entry-level segment the strongest of the three tiers. Mid- and high-priced homes saw small but meaningful improvements as mortgage rates held below 6.5%.
“The starter-home market is a double-edged sword right now,” said Chen Zhao, Redfin’s Head of Economic Research. “More supply and steadier prices are welcome news, but many buyers are entering this tier only because higher price ranges are out of reach. That puts first-time buyers in competition with move-up or move-down buyers.”
Starter-Home Prices Rising Slowly as Supply Expands
Despite the sales increase, price growth for starter homes remained mild. October’s median starter-home price rose just 2% the second-slowest pace in ten years. Slower mid-tier price growth (+1.8%) and stronger gains in the upper tier (+3.1%) suggest a cooling market overall.
A major reason for the slow rise in prices is the sharp increase in available properties. Starter-home inventory grew 13% YoY, reaching its highest level for October since 2016. For many first-time buyers who have spent years competing for scarce entry-level listings, this expansion is a noticeable shift.
Mid- and high-tier homes also saw larger inventories compared with last year, but not at the same pace as starter homes. Mid-tier inventory rose 9.5%, while high-tier supply increased 8.3%.
Buyer Behavior Is Changing as the Market Slows
“The slower pace of the market has really changed buyer behavior,” said Andrew Vallejo, a Redfin Premier agent in Austin. “Buyers aren’t rushing to waive contingencies or submit offers in hours. If a starter home is even slightly overpriced, it may sit longer, and buyers know they have more room to negotiate.”
New listings among mid- and high-priced homes dipped slightly, suggesting that much of the inventory growth is coming from homes lingering on the market. Starter-home new listings rose modestly up 0.5% reinforcing that higher supply is coming from existing listings staying active longer.
Homes across all tiers took longer to sell:
- Starter homes: 45 days (up 7 days)
- Mid-tier homes: 45 days (up 6 days)
- High-tier homes: 49 days (up 7 days)
A Market Shifting Toward Buyers—Slowly but Clearly
With active listings reaching near-decade highs and price growth easing, conditions are looking better for buyers especially in the entry-level segment. Still, affordability challenges remain. Many shoppers are turning to starter homes not because they prefer smaller or lower-priced properties, but because higher tiers remain unattainable for their budgets.
The next few months will likely bring continued supply growth, softer competition, and more room for negotiations factors that may offer long-awaited relief to many first-time buyers. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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