Hardware Retailing The Industry's Source for Insights and Information
The median price for a new single-family home sold in the first quarter of 2025 was $416,900, $14,600 above the existing home sale price of $402,300, according to U.S. Census Bureau and National Association of Realtors (NAR) data.
Traditionally, new homes cost more than existing homes, however, the median existing home price exceeded the new home price in the second and third quarters of 2024. This Q1 2025 price difference is considered standard, according to NAR.
Both new and existing homes saw dramatic increases in prices post-pandemic due to higher construction costs and limited supply. The median price for a new single-family home sold in the first quarter of 2025 decreased 2.32% and has continued to decline for eight consecutive quarters.
Also, the median price for existing single-family homes increased 3.38% year over year and have increased for the last seven consecutive quarters.
Several factors contribute to these price changes, including limited inventory, as many current homeowners who secured low mortgage rates are hesitant to sell due to higher interest rates.
New home pricing is more volatile—prices change due to the types and locations of homes being built. Despite various challenges facing the industry, home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes and offering incentives.
