Luxury Home Sales Climb While Starter Homes Sit

The housing market is splitting by price tier: luxury home sales grew 6.2% year-over-year in May while starter home sales fell 5.4%, according to new data from Zillow (Seattle). Starter home inventory rose 4.5% year-over-year in June as luxury inventory fell 5.2%, and 25% of starter listings took price cuts in June compared with 20.6% of luxury listings.

The company attributes the divide to stock market gains propping up purchasing power at the high end, while slowed hiring, elevated inflation, and weak consumer sentiment keep entry-level buyers on the sidelines. The gap is widest in San Francisco, where luxury sales surged 21.6% year-over-year in May as starter sales slipped 1.2%.

Read the full report here.