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Zillow shows starter-home slowdown while luxury sales hold up

Starter home inventory rose 4.5% year over year, but starter home sales fell 5.4% in May, while luxury sales were up 6.2% as competition increased.

Reported · Written up by our desk · Residential

Zillow data points to a housing market split between entry-level and high-end segments, with starter homes showing weakening demand even as inventory conditions improve. Mortgage News Daily cites Zillow’s findings that starter home inventory increased 4.5% year over year, though price cuts are becoming more common and bidding wars are fading.

Despite the inventory uptick, starter home sales declined 5.4% in May, according to the Mortgage News Daily summary of Zillow’s release. The same data set shows that luxury sales rose 6.2% year over the same period, supported by shrinking luxury inventory and growing competition.

The article also notes ongoing discussion around how borrowers seek assistance and how mortgage operations adapt, including reference to the Mortgage Credit Certificate Program, which allows eligible homebuyers to claim a dollar-for-dollar tax credit for a portion of mortgage interest paid each year, up to $2,000.

In addition, it highlights practical lending workflow issues such as ordering missing flood certification documents when boarding newly acquired loan portfolios, calling out an on-demand process to retrieve official flood determinations and send copies to investors and counterparties.

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