For years, it’s been almost a given that new homes come at a higher price per square foot than resale properties. But right now, builder incentives are rewriting that script—creating an intriguing shift in the value equation for buyers. Nationally, we’re seeing new homes compete directly with, and sometimes undercut, resale prices. This change is driven by two supply dynamics: builders needing to sell completed inventory, and existing homeowners holding on to their properties, which keeps resale inventory tight and competition stiff. Having worked in the San Ramon Valley for over four decades, we’ve navigated many market cycles, but it’s rare to see new construction shift from premium status to a position where buyers can negotiate even more favorably—especially in neighborhoods with ample builder inventory. In contrast, areas with limited new construction still tend to favor resale sellers. Looking ahead, the advantage for buyers may depend on continued permitting and building activity, as today’s new-home discounts could narrow if supply slows. As always, deep local expertise and understanding of these dynamics are essential in helping our clients make informed decisions.
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