Starter Home Sales Hotter During August
While property prices continue to edge up, this didn't deter first-time buyers earlier this year. During August 2025, the typical U.S. starter home sold for a record median price of $260,508, rising 2.2% from a year earlier.
Sales in August of houses for people just starting out on the housing ladder or downsizing increased 3.8% year over year. In comparison, sales of mid- and high-priced houses fell 0.6% and 1.2%, respectively. Pending sales of starter homes also moved up, rising 3.1% year over year in August.
Home prices were divided into three tiers for this analysis, with starter homes priced within the 5th to 35th percentile.
Starter home sales saw the most activity in Providence, Rhode Island (25.3%), Milwaukee, Wisconsin (12%), and Riverside, California. (10.8%). Sales slid in San Antonio, Texas (-10%), Miami, Florida (-7.3%), and San Jose, California (-5.8%).1
Investors Buying, Selling More Homes
A recent report released by market intel company CJ Patrick found that real estate investors purchased one-third of all single-family residential properties sold during the second quarter of 2025. It was a 27% increase from the first quarter of this year and the highest in the last five years.
While large institutional investors are sometimes blamed for reducing inventory for individual buyers, small investors with 10 or fewer properties account for more than 90% of the investment market. In addition, institutional investors sold more homes during Q2 2025 than they purchased, with 45% going to traditional buyers.
On a state-by-state basis, Texas, California and Florida have the highest number of investor-owned homes, mainly as they're also the most populous states. Other states with high numbers of investor-owned properties include those popular with tourists, such as Hawaii, Maine and Montana.2
Scare Up More Business with These Halloween Marketing Ideas
While handing out candy and other treats is never a bad idea, there are other spooky ways to build relationships with your territory, past clients and local families. Here are three.
Manage a costume donation drive. Team up with a suitable nonprofit, then post requests for new or gently worn Halloween costumes on your social media. Local elementary schools may also help you find the ideal recipients for these donations.
Sponsor a food truck on Halloween night. Parents and kids alike will appreciate the convenience of complimentary hot and cold drinks, with or without an additional snack menu. Parking in front of a spooky Open House can generate even more good karma.
Become a ghoulish agent on social media. There are plenty of AI tools and photo editors that can turn your headshot into your favorite scary character. Be sure to tell site visitors how you created a witchy or undead version of yourself.3
Nearly Half of Home Sellers Reducing Prices
Price adjustments by sellers are proof that more of them are willing to trade additional profits for more buyer interest. Recent data showed that 42% of listings for single-family homes featured a recent price reduction, with the median markdown at 4%.
The median list price for these homes is $444,900, while new listings are entering the market at a lower $410,000 median. On a per-square-foot basis, the national median price is $215. Cuts are the most concentrated at mid-range and higher price tiers.
As the fall season continues, homes are taking slightly longer to sell compared with early September. The median days-on-market is 70, up from the low 60s a month earlier.
As the markets continue to evolve, pricing strategy is more important than ever. Sellers that accept recommendations of realistic prices when their homes are initially listed are expected to find buyers quickly, while buyers should keep in mind that price cuts may also create opportunities.4
The Latest on the Government Shutdown
While the real estate and home financing industries haven't been totally crippled by the shutdown, there are still several situations that could delay closing a transaction.
- The IRS is not currently verifying income and Social Security numbers. This could cause delays for some mortgages.
- Buyers or sellers who are currently traveling may be delayed, as the FAA has reported major flight delays and cancellations due to air traffic controller shortages.
- Buyers whose new home is in a high-risk flood area may have their closing delayed, as the federal National Flood Insurance Program (NFIP) has ended, due to a lapse in its authorization caused by the shutdown. While the fate of the NFIP isn't known, private flood insurance is still available.
Sources: 1nationalmortgageprofessional.com, 2cnbc.com, 3theclose.com, 4housingwire.com, 5nerdwallet.com
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