New Homes Are Now Nearly $20K Cheaper Than Existing Homes
New-home prices have been falling for the past several months, but they are now on average $20,000 cheaper than homes in the resale market. According to housing market platform Realtor.com, the $407,200 median sales price of new homes was about $28,000 less than the existing-home price as of June 2025. That figure is a 6.5% discount and the biggest price difference in the last 25 years. In July, that discount narrowed slightly to $19,000, or 4%. Still, it is a much bigger gap than what's been seen in the past and is the fourth straight month that new homes have been cheaper than existing ones on average.
"New homes being less expensive than resale homes is an odd situation to be in," says Realtor.com senior economist Joel Berner. "The affordability difference goes beyond sticker price, too, as many builders are offering incentives like cash at closing or reduced mortgage rates that make a major difference in upfront costs and monthly payments."
In other words, new homes are likely even cheaper than they appear relative to existing homes, since homebuilders are offering sweeteners that don't show up in the median sales price.