New homes sold for less ($205 per square foot) than existing homes ($212 per square foot) nationally as builders cut prices and offered incentives to move rising inventory, according to a new analysis from Zillow.
The $7-per-square-foot premium for existing homes represented a reversal of a long-running pattern. New homes had a price premium in 77 of 84 months from 2018–2024, with a peak of $25 more per square foot than existing homes in November 2022. New homes have now sold at a discount in 17 of the past 19 months, with the widest gap ($12 per square foot) in June.
The U.S. Census Bureau put new-home supply at 9.6 months in July, up from 7.6 months two years earlier. Existing-home inventory remains 17.1% below pre-pandemic levels.
Read the full report here.
