Part 5/9:

The Impact of Builder Pricing on Resale Homes

The dynamics of pricing impact homeowners who purchased homes at inflated prices just a few years ago. Consider a homeowner who bought a property expecting it to be valued at $500,000, only to find the building next door selling for $400,000, creating a substantial gap in perceived value. This competition from builders is reshaping the resale market significantly. Homes that have been on the market for extended periods are witnessing losses of $122,000 or more, dragging down overall market values.

Further complicating dynamics, builders are now offering lower mortgage rates—like a year-one rate of 4.3%—making it increasingly difficult for resellers to attract buyers without making drastic price reductions.