Low mortgage rates have attracted more buyers to the market—especially first-timers—amid a supply shortage that’s showing no signs of letting up. Meanwhile, prices of expensive homes have risen just 2%.
Prices of the most affordable third of homes in the U.S. climbed 5.5% year over year during the 12 weeks ending May 31, while prices of the most expensive third of homes increased just 2%.
This is according to an analysis that divided all U.S. residential properties into five tiers based on Redfin Estimates of the homes’ market values as of early June. This report focuses on the “bottom” or