Headline: “June home sales drop to the slowest pace in 14 years as short supply chokes the market.” But, not everyone in the housing market is having the same experience:

First-time buyers are struggling the most. Their share of June sales fell to 26%, down from 30% in June 2022. That is the lowest share since the Realtors began tracking this metric.

The higher end of the market, however, appears to be recovering. While sales were down across all price points, they were down least at the higher end. That was not the case last year, when higher-priced home sales were dropping off sharply.

The bifurcated housing market continues. At the cheaper end, the bar for entering keeps rising. With prices up, mortgage rates up, and supply down, it is harder to purchase a first home. At the more expensive end, those with means continue to be able to buy and sell.

This is not new. The starter home is hard to find in the 2020s for multiple reasons. If people cannot buy a home early on, this limits opportunities down the road. If you are already in a more expensive home, you have more options.

Whether the differences between these two ends of the housing market is addressed in ways that help long-term remains to be seen.