Prices for newly built homes fell 1 percent to a median of $363,900 in the first quarter, according to Redfin.
The year-over-year drop in sales prices for newly built homes was the first drop in seven years, Redfin said.
Sales of new homes were down 3.1 percent year-over-year in the first quarter; the supply of new homes was up 4.2 percent in the first quarter.
“The market for new homes is shifting. Builders are readjusting their pricing to be more competitive, both in low-end and high-end homes. Some of my clients have been able to buy new homes at prices we never could have negotiated a year ago,” Redfin agent Connie Durnal said in a release.
“One reason builders are able to offer homes for lower prices is because in some cases, they're building on smaller lots farther away from the city center, like in the northern suburbs,” Durnal said. “They’re also reducing monetary incentives such as design center credits and built-in blinds in favor of offering the home for sale at a lower price. That way, builders end up netting the same amount of money on a sale but homebuyers may feel that they’re getting a better price.”