Entry-Level Home Values Rose Twice as Fast as Top Tier: Zillow

Entry-level home values rose at double the rate of top-tier homes over the past year, according to the Zillow Real Estate Market Reports for May.

Zillow reported Friday that entry-level home values rose 8% year-over-year versus a 4% increase for the most expensive tier of homes. Concurrently, the number of entry-level homes on the market tumbled 9% from 2015.

The number of homes for sale at the top end of the market has remained flat.

"Buyers looking for entry-level homes are having bidding wars in many markets, while it's not uncommon for high-priced homes to stay on the market a few months longer," Zillow chief economist Svenja Gudell said in a news release.

"The housing market is much more forgiving for current homeowners looking to move into a bigger, more expensive home. These buyers can be a bit more selective, and may even get a good deal."

The inventory for entry-level homes has especially tightened in some markets, such as Portland, Ore., where inventory in this slice of the market has dropped 40%.

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