For the first time in more than 50 years, the price of a new single-family home is lower than the average price of an existing single-family home, see chart below.
The downward pressure on new home prices is driven by homebuilders producing smaller homes and providing incentives to homebuyers in a market where affordability is a challenge.
The upward pressure on existing home prices is driven by low inventory as many current homeowners are reluctant to sell because they have locked in low mortgage rates from previous years.
Sources: National Association of Realtors, US Census Bureau, Apollo Chief Economist
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