A recent report reveals that prices for newly constructed homes fell in one-third of major U.S. cities, offering some relief to homebuyers facing affordability issues. Little Rock, AR, saw a 13% decline in median prices. Overall, 32 cities experienced price drops despite the growth in median home sizes in some regions. Builders have been creating smaller, more affordable homes to combat supply shortages. However, concerns remain regarding potential cost increases from tariffs on imported materials, which could hinder progress in making housing more accessible.
"Builders are delivering smaller homes at lower prices and often offering financial incentives that make monthly payments more manageable," says Realtor.com Chief Economist Danielle Hale.
The U.S. has a housing supply shortfall of nearly 4 million units, underlining the importance of new home construction in filling the gap.
In the first quarter, new-home sizes shrank from a year ago in 55 out of the top 100 metros, showing a significant shift in builder strategy.
Overall, 32 of the nation's top 100 metro areas saw declining new-home prices, indicating both opportunities and challenges for homebuyers in the market.
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