New homes are selling at sharp discounts — costing $20K less than existing ones

As far back as modern records go, newly built homes have almost always cost more than previously owned homes.

It only makes sense: New homes are expected to have far fewer maintenance issues, brand new appliances, and designs suited to contemporary tastes, plus they can be customized to suit the homebuyer’s needs.

After all, it is only in very rare circumstances that a used car would cost more than a similar make and model purchased brand new at the dealer’s lot.

But in recent months, that trend has been upended to an extent that has never been seen, with the typical new home selling at a sharp discount to existing homes.

In June, the $407,200 median sales price of new homes was about $28,000 less than for existing homes, a 6.5% discount and by far the biggest inversion in at least 25