"Monthly payments for new and existing homes are now nearly equal, amid a trend of stagnating prices and increased use of mortgage buydowns among builders. That was one of the main findings from Realtor.com's Q3 New Construction Report. According to the report, buyers purchasing a new home last quarter had an average mortgage payment only about $30 more per month than those buying an existing home with less money down."
"At the same time, existing-home prices, remaining sticky-high thanks in part to so many current owners feeling locked-in to historically low interest rates, increased 1.6% annually to $409,667, 3.9% above Q3 2022. New home prices have stagnated, in part because builders are working through excess inventory in specific markets and need to price to sell. Builders are eager to sell, and much new construction also takes place on the outskirts of metropolitan areas, away from city centers and in less premium regions."
"Additionally, new homes, while larger than existing homes, tend to be slightly smaller than they used to be as builders aim to address affordability. That's just kind of a reflection of builders wanting to offer lower dollar inventory that's more accessible to folks, said Realtor.com Senior Economist Joel Berner. According to Berner, the average square footage for an existing home is about 1,700 to 1,800 square feet, while new homes av"
Monthly mortgage payments for new and existing homes are nearly equal, with buyers of new homes paying only about $30 more monthly despite typically putting less down. Softening demand and excess inventory have stalled new-home sales, narrowing the price gap. Median listing prices for new construction were $451,337 in Q3 (+0.2% year-over-year, -4.0% from the 2022 peak), while existing-home medians rose to $409,667 (+1.6% year-over-year). Builders are offering larger rate breaks and mortgage buydowns and slightly reducing home sizes to improve affordability. Regional corrections from 2022 peaks also contributed to price declines.
Read at www.housingwire.com
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