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New Homes Narrow Price Gap With Existing Houses as Builder Buydowns Cut Borrowing Costs

Realtor.com's Q3 report puts the new-construction premium at a record-low 10.2%.

Overview

  • In Q3 2025, new-construction buyers averaged a 5.27% mortgage rate versus 6.26% for existing-home buyers, a 99-basis-point advantage.
  • New-home purchasers put down an average 15.7% versus 17.8% for existing homes, bringing monthly payments for new builds to roughly $30 higher despite larger list prices.
  • Nationwide, 15.1% of new-home listings saw price cuts, the highest share on record in Realtor.com's data.
  • Median listing prices were $451,337 for new construction (flat year over year) and $409,667 for existing homes (up 1.6%).
  • Pricing flexibility and incentives are strongest in the South and West, while the Northeast and Midwest continue to price new homes as a premium product.