10 US Metro Areas Where New Home Prices Are Being Cut
Existing-home prices hit record highs, but builders in key metros are slashing new-home prices to move inventory fast.
Existing-home prices just punched a new all-time high, and most buyers are feeling the squeeze. But flip to the new-construction side of the market and a very different picture emerges — one where desperate builders are handing out discounts to get deals done.
Across at least 10 U.S. metro areas, homebuilders are cutting prices on new homes rather than letting inventory pile up. When builders get nervous, you benefit. That's the tradeable angle here: the new-home market is flashing an opportunity that the resale market simply isn't offering right now.
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Why are builders sweating? It's a combination of elevated mortgage rates chilling buyer demand and a surge of completed inventory that needs to move. Builders have carrying costs — land, labor, materials — and an empty house costs them money every month. Cutting price is cheaper than waiting. That pressure is your leverage as a buyer.
This dynamic creates a rare split in the housing market. Resale sellers are holding firm, emboldened by record valuations and low existing supply. New-construction sellers are blinking first. If you're in the market for a home, particularly in one of these ten metros, you could be negotiating from a position of real strength right now — price cuts, rate buydowns, or both.
The divergence between record existing-home prices and discounted new builds won't last forever. Once rates ease or inventory clears, that builder generosity dries up. Move with urgency or watch the window close. Continue reading at MarketWatch.com
