New Construction Homes Just Got a Price Tag Shake-Up

Neil Caron
Aug 5
2 min read

🏡 August 5, 2025 | Market Trends | Presented by ReadySetLoan™

Builders Are Slashing Prices—and They’re Now Outpricing Resale Homes

In a rare twist, new construction homes are now more affordable than existing homes—and it’s not just a fluke.

For years, newly built homes came with the higher price tag you’d expect for the latest appliances, updated layouts, and energy efficiency. But as of mid-2025, that script has flipped. Thanks to aggressive builder discounts and incentives, the median price of a new home is now nearly $3,000 less than that of an existing home.

📉 Median new home price (June): $417,700🏘️ Median resale home price: $420,000🛠️ Source: U.S. Census Bureau & National Association of Realtors

This shift comes as homebuilders scramble to keep demand strong amid higher mortgage rates and persistent affordability challenges. Many are throwing in perks like rate buydowns, free upgrades, and cash at closing, making these homes even more appealing to cost-conscious buyers.

🐷 RSL Piggy Points™

🏗️ New homes = better deals: With builder incentives, a brand-new home might cost less and come with more features.
📈 Existing homes still facing tight inventory, especially in popular Connecticut neighborhoods.
🧰 Move-in ready, modern layouts, and energy efficiency make new construction even more attractive in today’s market.
💰 Builders are pricing strategically to offset high mortgage rates—and it’s working.

🎤 Neil’s Take

“This is a wake-up call to buyers sitting on the sidelines,” says Neil Caron, Area Sales Manager at CMG Mortgage. “If you’ve assumed new builds were out of reach, think again. In many Connecticut markets, the smart money is on new construction right now—especially when factoring in the incentives.”

💡 RSL Perspective

While inventory across Connecticut remains tight, opportunities like this don’t knock twice. If you're in the market, don’t overlook new construction communities, especially those offering financing partnerships and builder deals. These properties offer modern amenities, energy savings, and now, even lower prices than their pre-owned counterparts.

Not sure where to start? Let ReadySetLoan™ be your guide. From neighborhood intel to builder incentives, we’re your educational partner through every step of the homebuying journey.