New homes continue to be cheaper than existing homes

Lemons and lemonade

Last month, nearly 84,900 listings were withdrawn nationwide.

Most agents look at that number and move on. I see a pipeline.

A withdrawn listing isn't necessarily a dead deal. More often than not, it's a homeowner whose plans got delayed, not canceled. The opportunity is right there, but the challenge is knowing how to approach it.

That's exactly what we're covering in today's Foundation Plans.

- James

New homes continue to be cheaper than existing homes

For decades, buying a newly built home typically meant paying a premium. Not anymore.

In Q1 2026, the median price for a new home was $403,200, $1,400 less than the median price of an existing home. According to the NAHB, this marks the fourth consecutive quarter in which existing homes have been more expensive than new ones.

Here are the key points to know:

• New-home prices are falling while resale prices keep rising: The median new-home price declined 4.7% year over year, while existing-home prices increased 0.6%.

• Builders are getting creative: Smaller lots, smaller homes, and buyer incentives are helping builders keep prices competitive despite rising construction costs.

• Inventory remains tight: Many homeowners are staying put rather than giving up the low mortgage rates they secured during the pandemic, limiting resale supply.

• The South remains the affordability leader: The median new-home price in the South was $361,800, the lowest among all U.S. regions.

• Regional price gaps are substantial: New homes in the Northeast sold for $309,200 more than existing homes, while existing homes in the West were $55,500 more expensive than new homes.

My take

If affordability is the main issue for your clients, don't assume a resale home is the better value simply because it's older inventory. Builders have spent the last two years adjusting to affordability challenges through incentives, rate buydowns, and smaller floor plans, while many existing homeowners have been slower to adjust their expectations. For buyers, that means a new home may offer more value than they realize. For agents, it's a reminder to keep both new construction and resale options on the table when helping clients evaluate their choices.

Investor home purchases fall to lowest level since 2020

In Q1, 2026, U.S. investor home purchases totaled 45,397, down 6% from last year to their lowest level since 2020. According to Redfin, before 2020, the last time investors bought so few homes was in 2016.

Here’s what else Redfin found:

• Investors still bought nearly 1 in 5 homes: Investors accounted for 19% of all home purchases in Q1, down slightly from 20% a year ago.

• Investor-owned listings hit a five-year low: Investors held 7.8% of all homes for sale, the smallest share since 2021.

• Condo purchases fell the most: Investor condo purchases dropped 8% year over year to their lowest first-quarter level since 2015. Townhome purchases fell 13%, while single-family purchases declined 6%.

• Lower-priced homes saw the biggest pullback: Purchases of low-priced homes fell 10%, compared to a 6% decline for mid-priced homes and a 1% decline for high-priced homes.

• Investor demand varied sharply by market: Purchases fell 35% in Detroit and 25% in Orlando, but rose 19% in San Francisco and 12% in San Jose.

My take

Investors are pulling back, but not evenly. The steepest declines are in lower-priced homes— down 10% year over year — while high-end purchases barely moved. Lower-priced homes tend to have tighter profit margins, and when insurance, taxes, and borrowing costs are all rising, those margins get even thinner. For buyers, that's encouraging news because lower-priced homes have traditionally attracted some of the strongest competition from investors. For agents, it's also a reminder not to neglect investor clients. Even after this pullback, they're still responsible for nearly 20% of home purchases nationwide.

The best buyer’s markets heading into summer

Homebuyers are gaining leverage in more markets across the country. Realtor.com now identifies 10 buyer's markets among the nation's 50 largest metros, up from eight just one month ago. 

More inventory, longer selling times, and softening seller leverage are creating better conditions for buyers heading into the summer selling season.

Here are the top 10 buyer’s markets heading into summer, according to Realtor.com:

1. Houston, TX

2. San Antonio, TX

3. Memphis, TN

4. Atlanta, GA

5. Jacksonville, FL

6. Miami, FL

7. Nashville, TN

8. Orlando, FL

9. Riverside, CA

10. Tampa, FL

My take

The real story here isn't just that buyers have more power; it's why these specific markets flipped. Many of them were among the biggest beneficiaries of the pandemic migration boom, attracting new residents with lower taxes, warmer weather, and remote-work flexibility. Builders responded by adding inventory, and now in many of these markets, supply has finally caught up to demand. That's helping shift leverage back toward buyers. Riverside, CA, is the outlier worth watching. California has spent years defined by tight inventory and strong seller leverage, so its appearance on this list suggests the housing market's rebalancing is spreading beyond the Sun Belt.

Schematics

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Foundation Plans

Advice from James to win the day

As of April 30, 2026, 84,896 listings have been withdrawn nationwide — up 9.4% year over year and 3.8% month over month.

Most agents see that number and move on. I see a pipeline.

A withdrawn listing isn't a dead deal. It's usually a homeowner who still wants to sell, but ran into the wrong price, the wrong marketing, or the wrong agent at the wrong time. The goal didn't disappear. The plan just fell apart.

Here's how to be the agent who helps them try again.

1. Do your homework before you dial – Pull the listing. Study the photos, the pricing history, and how long it sat. Ask yourself: what actually went wrong here? The sellers you're calling have already been through a disappointing experience. The fastest way to earn their attention is to show up informed — not with a pitch, but with a perspective. There's a big difference between an agent who did their research and one who's working a call list.

2. Lead with their goal, not their failed listing – These sellers aren't stuck on the past — they're stuck on not getting what they wanted. Maybe they needed to relocate. Maybe they were trying to free up equity. Whatever it was, that motivation probably hasn't gone away. Find it, name it, and build your entire conversation around helping them get there. The moment you stop talking about what went wrong and start talking about where they're trying to go, the whole dynamic shifts.

3. Show them something different, specifically – "I'd do a better job" is not a strategy. Sellers have heard it before. Tell them exactly what you'd change — the pricing approach, the marketing plan, the photography, the launch timeline. Pull up a comparable home you sold after a failed first listing. Specifics are what turn skepticism into curiosity. Vague promises don't give a discouraged seller anything to hold onto.

4. Stay present, even when they're not ready – Some withdrawn sellers need time before they're willing to try again. Respect that. But don't disappear. Send a market update. Leave a handwritten note. Check in with a short call every few weeks. You're not trying to pressure anyone — you're just making sure that when they're ready to move, your name is the first one they think of. The agents who win these listings aren't always the most aggressive. They're usually the most consistent. 

Bottom Line: Withdrawn sellers aren't leads that dried up — they're homeowners whose plans got interrupted. Approach them with genuine curiosity, a specific strategy, and steady follow-through, and you'll find opportunities that most of your competition has already written off. 

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

"Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution."  – Attributed to Aristotle

Thanks for reading, friends. Excellence and success don’t happen by chance — they’re built through intention, focus, and consistent effort.

Have a wonderful weekend, and I’ll see you back here next Friday!

- James