The price installment dissolves in the new construction houses. The prices of new homes decreased in 30 % of the large American cities in the last quarter

While the new construction houses historically are more expensive than buying an existing house, this trend changes in some markets. In the last quarter, medium listing prices on an annual basis for the new construction decreased on 30 of the largest metro in the United States, according to RealTor.com on August 7. a report.

Historically, the prices of prices in the new construction role are largely driven by the means of comfort and allocating allocation, the increasing materials and employment expenses; And strong demand for more housing. The medium listing price for a new house in the second quarter of 2025 was about 450,000 dollars, while the average price of the current house was about 418,000 dollars, According to RealTor.com.

But the low prices were prominent in the south and west, where builders try to provide more options at reasonable prices through incentives. Meanwhile, increasing competition for current homes and the weakening of Jupiter has led to a reduction in the new construction prices, according to RealTor.com.

“On the market, he is still fighting with a shortage of nearly 4 million homes, the new building plays reasonable prices an important role in restoring balance,” said Daniel Heil, Skaltured Senior Economist in Real. “Even with the last slowdown in the beginning and permits, builders of new houses continue to the market at a health pace.”

Although the total price of the new house is higher than the current house, buyers can get a better price per square foot, as Reallyor.com data appears. On the national level, the new construction is usually included for about 218 dollars for the square foot, compared to $ 226.56 for current homes, according to RealTor.com.

It includes the first five markets in which the prices of new homes have decreased on an annual basis, according to RealTor.com:

• Little Rock, Arkansas (-15.6 %)
• Austin, Texas (-8.5 %)
• Witchita, right. (-7.9 %)
• Jacksonville, Florida (-7.8 %)
• Cape Coral, Florida (-7.4 %)

deflation It is also a playing factor that made new houses more affordable in some markets. Builders make homes smaller, and therefore more affordable, for new buyers. A report issued by John Burns Research & Consulting has shown about a quarter of new homes to reduce costs. To make smaller homes more tempting and practical, builders reduce the number of corridors and increase the flexible space in the house.

“Instead of reducing the rooms to reduce the size of the house in general, there was a common tactic among our architectural designers is to eliminate unnecessary trading space,” JBRC wrote in its architecture and design report. “We are basically, we are floundering in the functional rooms together, and avoiding swaying snapshots in non -functional areas such as corridors.”

Builders offer incentives

To lure home buyers to go with a new house, builders offer incentives such as Buy a mortgage rate And designing promotions to compensate for declines in the demand for enlarged costs.

Devin BakhanmanCEO of John Burns Research and Consulting, It was previously said luck These temptations were the “number one” engine for the growing new home sales.

She said that the process of purchasing a mortgage price, which is the industry period for reduced mortgage rates, is the most desirable and most effective motivation “in the new home market today.

There are several types of mortgage purchases, including full -term purchases and temporary purchases. Through the purchase process, the builders start the difference between the mortgage rate in the market and the mortgage rate they offer. The full -term purchase will continue to be totally loan, while temporary purchases may last for only a few years. May 2025 a report From the National Association for Home Buildings, it appears that 61 % of builders use sales incentives such as purchases.

Purchases are an attractive choice for potential home buyers who closely monitor mortgage rates, but they were disappointed with high interest stubbornness. The Ice Mortgage monitoring report for July showed that more than 8 % of the borrowers had homes with modified real estate loans (ARMS) or temporary purchases last year, which reduced the monthly payments in the first years of loans.

However, ICE mortgage warned that “while these loans provide short -term rest, the trauma of payment in the future, especially if interest rates are high or reset.”