The average home is now selling below the list price

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Today’s newsletter is 632 words—a 2.5-minute read.

1. Texas among states with the most $1 million starter homes

According to a new Zillow analysis, while the typical starter home nationwide is valued at $198,649—up 1.7% from 2025—a record 242 cities now have starter homes priced at $1 million or more, up from 226 in 2025.

In Texas, seven cities had $1 million-plus starter homes in April 2026, up from six in April 2025 and zero before the pandemic. This reflects how rising prices in major metros and fast-growing suburban markets have pushed entry-level housing into luxury territory.

2. The average home is now selling below the list price

The average home in the U.S. is now selling for less than its asking price, and new data from Realtor.com shows how quickly sellers lose leverage the longer a listing sits on the market.

Here’s what the data shows:

• The national sale-to-list ratio has slipped below 1.0, meaning the typical home is now closing below its original asking price.

• Condos remain the softest segment, averaging 97.9% of list price at sale compared to 99.2% for single-family homes.

• Regionally, the Northeast is the only market where the average home still closes above asking. The South and West remain firmly in buyer-friendly territory, with many Sun Belt metros now carrying more inventory than before the pandemic.

A MESSAGE FROM DAVE YOUR MORTGAGE GUY

Here's the truth: 40% of bank statement loans get denied in underwriting.
Here's why:
▸ Loan officers eyeball the deposits and say "you're fine"
▸ Underwriting removes large or unexplained deposits
▸ The qualifying income drops — sometimes below the threshold
▸ The deal dies — after your buyer is already under contract
Tune in for how I've closed 100% of my bank statement loans.
If you have a self-employed buyer trying to figure out if they can qualify — forward this to them. It'll answer the question on who the best lender is for their situation faster than a phone call.

3. Catch up quick

🏠 Texas community's foreclosures lead the nation. (USRealEstateInvestor)

🏗️ Texas among top states for homebuilding and affordability. (Realtor.com)

⚖️ Zillow investor sues over Redfin rental syndication deal. (HousingWire)

4. Google’s listing ads are going national

Google announced on Thursday that it is rolling out enhanced Local Services Ads for Home Listings across all 50 states, following a limited pilot in eight markets that began last year.

The expanded format will showcase property details, including pricing, images, and key home features, with listing data powered by HouseCanary.

Buyers will be able to call, message, or schedule an appointment with a local agent directly through the ad. Existing Local Services Ads agents will automatically appear in the experience, while new agents can sign up directly.

Google also said portal partners can enroll agents through its Local Services Ads managed partner program.

5. AI homebuying platform Homa launches in Texas

Homa, an end-to-end AI-powered homebuying platform, officially launched its services in Texas yesterday, with availability across Austin, Dallas, Houston, and San Antonio.

The platform allows buyers to retain most of their buyer-side commission, typically around 2%, as a closing credit, by combining AI-driven property analysis, offer support, and expert guidance.

A MESSAGE FROM SUPERHUMAN AI

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