"New homes are currently being sold at a discount compared to existing homes, with the median sales price of new homes being $28,000 less than existing homes, representing a 6.5% discount, the largest in at least 25 years. Builders are offering incentives like cash at closing and reduced mortgage rates, making new homes even more affordable than their sticker price suggests."
"In a surprising turn of events, new homes are now selling at a discount compared to existing homes, a trend that has not been seen in at least 25 years. This shift is driven by various factors such as declining new-home prices and increased incentives offered by builders. The market dynamics between new and existing homes are evolving, leading to a unique situation for homebuyers and sellers alike."
New-home median prices have fallen relative to existing-home prices, producing an average discount of about $28,000, or 6.5%. Builders are offering increased incentives, including cash at closing and reduced mortgage rates, which further lower buyer costs. New-construction floor plans are shifting toward smaller, more affordable layouts, yet remain larger and often cheaper per square foot than many existing homes. Housing supply for new homes has risen, prompting more aggressive pricing as builders seek to convert inventory amid softer demand. Buyers benefit from incentives and lower effective prices, while existing-home sellers face comparative pricing pressure.
Read at SFGATE
Unable to calculate read time
Collection
[
|
...
]