Home Prices Are FALLING, Mortgage Rates Are RISING

The median price of a new home in the United States has fallen below the median price of an existing home—a reversal of the normal premium buyers pay for a house nobody has lived in. As of the recording, the median existing home sold for $429,000, while the median new home sold for roughly $411,000. New home prices have dropped about 15% over the past four years, and the national median asking price fell for the tenth consecutive month in August. The hosts of the Money Guy Show call this a “glimmer of hope” for frustrated would-be buyers, but they are careful not to overstate it: housing remains expensive, and the path forward is slow and uneven.

What Is Driving Prices Down

Three forces are pushing home prices lower, and the hosts walk through each with supporting data.

First, inventory is finally catching up with demand. After the pandemic-era relocation boom, home inventories hit a low of under 400,000 listings in 2022. By August 2026, active listings had climbed to more than 1.14 million. U.S. home sellers now outnumber buyers by about 560,000—a 58% gap. The hosts show a chart of the pandemic-era spike in buyers relative to sellers and describe the current period as a “healing process” after a massive distortion.