Typically, buying something brand new is more expensive than buying it previously owned. That’s certainly true with homes. Older homes are generally more affordable than new construction. That isn’t likely to change. But while new homes are still more expensive than existing homes, the price premium for a new home is now at a record low. In fact, according to a new analysis from The National Association of Realtors’ consumer website, the price premium for new homes dropped to just 7.8 percent during the second quarter of this year. Danielle Hale, the website’s chief economist, says increased new home construction has brought value to buyers. “In many areas, these homes are not only available, they also offer better value compared to existing home inventories,” Hale said. “We’re even seeing new home price declines in some of the most active pandemic-era hot spots, signaling a shift toward greater affordability in markets that were previously out of reach for many.” Nationally, the average cost per square foot for a new home is $218.66, compared to $226.56 for existing homes. (source)
