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Chart of the Day: Existing Equal to New

Samuel A. Kiburz Sep 26, 2023
existing homes in green, and new homes in purple. The two lines meek at $416k

Contents

Today’s Chart of the Day from The Kobeissi Letter, @KobeissiLetter on X, shows that the prices of new homes are falling and are now the same price as existing homes. Going back to 2008, this is normally not the case (think in reference to new vs. used cars). The reason given is that so many homes are locked into low rates and that supplies of existing homes are falling, which makes them more expensive. This scenario paired with the declining cost to build new homes as supply chains open up, and voilà, prices are now equal.

Price parity is not a normal state of affairs, so it will be interesting to see which side gives out first.

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