New homes are selling at sharp discounts — costing $20K less than existing ones

New homes are currently selling at a discount to existing homes, a rare trend not seen in 25 years. In June, new homes were priced about 6.5% lower than existing ones, partly due to builders offering incentives and smaller floor plans. This inversion is driven by builders' motivation to sell amid high inventory, while existing home sellers remain reluctant to lower prices. This raises questions about the true efficiency of the resale market.

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