BAM Key Details:
- New-home sales fell 10.5% from June to July, while months’ supply climbed to 9.6.
- The median new-home price dropped to $393,800, putting new construction $40,300 below the $434,100 median price of an existing home.
- More than half of July’s new-home sales were under $400,000, while major builders continue offering incentives worth roughly 10% to 13% of the purchase price.
- The Agent Play: Compare local new construction with resale options in your content, then help buyers look beyond the headline incentive to understand which option delivers the best value today and when they eventually sell.
New-home sales dropped 10.5% from June to July, according to the latest report from the U.S. Census Bureau. Builders have 488,000 homes on the market, and the median price on those homes fell to $393,800, a number below the median price of an existing home.
Builders are pricing new construction under the resale market, and buyers are noticing. More than a few are wondering, “Why not just focus on new homes?”
Incentives are called that for a reason. And if builders are offering more than existing-home sellers to reduce the cost of a home purchase, cash-strapped buyers are going to lean.
What gets lost in all the incentive talk is what they mean for buyers five years down the road.
We’re breaking down the numbers to explain why builders can price this low, plus two agent plays to put into action this week: one for content, one for client conversations.
What Just Happened in New-Home Sales
New-home sales cooled in July while inventory kept climbing. Sales fell 10.5% month over month, to a seasonally adjusted annual rate of 607,000.
That’s down 6.3% year over year from July 2025’s rate of 648,000.
Meanwhile:
- New homes for sale rose to 488,000, up 1.9% from June’s 479,000
- Months’ supply climbed to 9.6, up from 8.5 in June
Anytime months of supply is greater than six, it signals a buyer’s market for that price segment. More supply means more options for active buyers and a greater likelihood of concessions to sweeten the deal.
Builders Are Pricing Below the Resale Market
New-home prices dropped below the resale median in July, giving buyers a clear price advantage on new construction.
- Median new-home price: $393,800, down 2.3% from June’s $403,100, the lowest mark since March 2026
- Median existing-home price: $434,100 (National Association of Realtors, July)
New construction runs $40,300 cheaper than resale at the median. Frame that as monthly savings, with real numbers, and your buyers see the difference even more clearly.
Aside from the price difference between resale and new construction, builders are leaning on incentives to move inventory, according to a new ResiClub report:
- K. Hovnanian: a 10.8% incentive rate, $58,000 off a $539,000 home
- Lennar: a 12.9% incentive rate, $51,600 off a $400,000 home
Builders call 5-6% a normal incentive baseline, and current numbers run close to double that mark.
Yet, while builders offer more tantalizing incentives, NAR chief economist Dr. Lawrence Yun points to resale demand holding steady despite the higher cost of borrowing:
“Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months.”
People have their reasons for choosing existing homes over new builds. And depending on your market and price point, the resale options may hold more advantages for the buyers you serve.
More Than Half of July’s Buyers Paid Under $400,000 for New Homes
The July price breakdown reveals the most active price points for new construction this summer.
- 53% of new homes sold in July were priced under $400,000
- 19% sold under $300,000
- 34% sold between $300,000 and $400,000
More than half of new-construction buyers fall into a price range where resale listings compete for the same shoppers. Good news for those buyers (more options), but less ideal for sellers at these price points competing with shiny new builds.
And with supply climbing and incentives holding steady, builders have room to keep pricing this way through fall.
Two Plays for Agents This Week
Here are two ways to turn this report into content and conversations for your real estate business.
#1: The Content Play (One-to-Many)
Showcase local builder developments priced under your market’s existing-home median:
- “Here’s what $X buys in new construction versus resale in [Your Market]“
- A side-by-side video walkthrough: a builder spec home next to a comparable resale listing
- “Builders are cutting prices. Here’s what that means for your home search.”
Or showcase the differences in buyer benefits with new builds vs resale:
- A carousel post comparing builder incentives (rate buydowns, closing cost credits) to resale seller concessions
- A short face-to-camera video on “How do you know which concessions will do you the most good—now and five years from now?”
That last one gives you a chance to compare the upfront perks of a builder’s mortgage rate buydown to a resale seller’s offer of assistance with the down payment or closing costs.
#2: The Conversation Play (One-on-One)
In a minute or less, BAMx members can pull opening lines from the BAMx AI Script Advisor for handling the “why not just buy new” conversation.
Here are some examples, drawing from scripts developed during the BAMx live Roleplay Masterminds.
Opening Script 1 (Discovery First)
“That’s actually worth exploring. Before we go down that road, can I ask you a couple of quick questions so I can actually help you compare?
[Buyer: “Sure.”]
How long are you planning to stay in this home?
[Buyer: answers]
Got it. And when you think about the incentive the builder is offering, is it the lower monthly payment that’s most important, or is it more about reducing what you bring to the table at closing?
[Buyer: answers]
Okay, that helps a lot. Because the answer to both of those questions actually changes whether new construction is the right move for you or not. Can I pull the numbers on both options so you’re not guessing?”
This one is classic Lisa Chinatti: discovery before direction. Lisa’s approach finds the why behind the interest before offering an opinion.
The final line is a soft CTA that earns the next step without pressure.
Opening script 2 (Reframe with Data):
“Totally fair question, and the incentives are real. Here’s one thing worth knowing before you decide. Builders keep their list prices the same and deliver the discount through rate buydowns or closing cost credits, not a lower sale price. So every home in that community shows as sold at full price in the data. Your incentive never shows up.”
[Buyer: “Okay, so what does that mean for me?”]
“It means when you go to sell, the market looks at those full sale prices, not what you actually paid net of incentives. So, the question isn’t just what does this cost me today. It’s what does this home look like on paper when I sell it.”
[Buyer: “I hadn’t thought about that.”]
“Most buyers don’t until after closing. Want me to pull the resale data on a couple of those new construction communities alongside some resale options, so you can see both pictures side by side before you decide anything?”
This opening script uses the OFQ structure: one clean market fact, a question that reveals the gap, then a specific value offer that earns the next meeting.
No pressure and no pitch. The data does most of the work.
And for the buyer that went quiet? Here’s a quick text to send to help determine whether they are still looking to move:
“Hey [Name], just saw something I thought you’d want to know. Median prices on new construction homes are under $400,000. Builders are still offering incentives, too. If the right one popped up, would you want me to send it over?”
Get more scripts like these (and countless others) any time as a BAMx member, and practice them live during the Roleplay Masterminds on Tuesday mornings at 9:00 am ET. The Script Advisor is built on these masterminds and updated every week. Sign up to get full access.
Be ready with the data you need to discuss all the options with your buyers, so they come away feeling smarter and better prepared, and they know who to trust when other questions come up.
