Luxury homes are selling at a faster pace than a year ago, with shrinking supply and growing bidding wars. Starter homes are piling up on the market, sitting longer and drawing price cuts as buyers fail to show up. Zillow defines starter homes for this analysis as those in the 5th to 35th percentile of home values in a given region. Price cuts were more common on starter homes, with 25 percent of starter homes cutting their price in June, compared to 20.6 percent of luxury home listings. Stock market gains have bolstered purchasing power at the top of the income spectrum, keeping demand for luxury homes strong.