Resale vs. New Builds: Who Has the Upper Hand in Today's Market?

If you've been keeping an eye on the housing market lately, you've probably noticed a lot of mixed messages. Some people say prices are going to drop. Others say interest rates will eventually come down. And then there are those who believe it's better to wait until everything settles.

But here's something I always like to remind my clients:
There isn't one perfect market for everyone. What matters is understanding the market you're actually buying or selling in.

And right now, one of the biggest conversations we're having in the Phoenix West Valley is about resale homes versus new construction. With new communities continuing to attract buyers across Goodyear, Buckeye, Surprise, and surrounding areas, homeowners looking to sell are facing a different kind of competition.

Let's talk about what that really means for you.

First, Let's Look at the Numbers

During eXpcon 2026, Leo Pareja shared some interesting insights about the housing market, including the growing competition between existing homes and newly built properties.

Here's a snapshot of the national housing market using August 2026 data:

Existing Homes | New Construction
Annualized sales pace - Approx. 4 million | 684,000
Housing inventory - 4.9 months | 8.5 months
Median sales price - $429,100 |  $393,700
Annual price change +1.6%- |   5.8%

One number that really stands out?

The national median price of a newly built home was $35,400 lower than that of an existing home.

Now, that doesn't mean every new construction home is cheaper than every resale home. These are national averages of the middle sale prices, and the homes being sold can differ in size, location, features, and lot size. But it does tell us something important: the idea that buying a brand-new home always means paying more isn't necessarily true anymore. And there's another part of the equation that buyers should pay attention to.

Why Are Builders Offering So Many Incentives?
Imagine you're shopping for a home and you've narrowed it down to two options.

One is a beautiful resale home in an established neighborhood. It has mature landscaping, a finished backyard, and maybe even a pool.

The other is a brand-new home in a developing community.

Both are within your budget. But then the builder offers to help lower your mortgage interest rate or contribute toward your closing costs.
Suddenly, that new home might look more affordable on a monthly basis. That's exactly why builder incentives matter so much in today's market.

Many builders are using offers such as mortgage rate buy-downs, closing cost assistance, and upgrades to attract buyers.
A rate buy-down, for example, can reduce the interest rate on your mortgage, either temporarily or for the life of the loan, depending on the program. And when you're making a mortgage payment every month, even a small difference can matter. Of course, there's always fine print. Some incentives require using the builder's preferred lender, and the advertised rate may come with specific qualifications.

That's why I always encourage buyers to compare the full picture, not just the promotional offer.

Does That Mean New Construction Is the Better Deal?

Not necessarily!

I love that buyers have options, but I also think it's important to remember that a home is so much more than its purchase price. A resale home might already have features that would cost thousands of dollars to add to a new build. Think about window coverings, ceiling fans, landscaping, a finished patio, or a beautifully designed backyard. You may also be buying into an established neighborhood with mature trees, existing amenities, and a community that's already developed its own character.

On the other hand, a new construction home may offer modern layouts, updated energy-efficient features, newer systems, and the opportunity to personalize certain finishes. Neither option is automatically better.

The better choice is the home that fits your lifestyle, your finances, and what you want your next chapter to look like.
And sometimes, after comparing everything, the resale home turns out to be the smarter purchase.
Other times, the builder's incentives make new construction worth considering.
That's why I believe in exploring both before making a decision.

What Does This Mean If You're Selling a Home in the West Valley?
Now, let's look at the other side of the conversation.

If you're a homeowner in Goodyear, Buckeye, Surprise, or Litchfield Park, you might be wondering how you're supposed to compete with brand-new homes. And I completely understand that concern.

When a builder can offer attractive financing incentives, it can make a resale home feel less competitive, even when that home has so much to offer.
But here's the good news.

Your home doesn't have to be brand-new to be the right home for someone. Maybe your property has a larger lot, a private pool, beautiful landscaping, or a location close to the schools, parks, and places buyers love. Maybe the neighborhood is fully established, which means buyers don't have to wonder what the surrounding area will look like five years from now.

Those are real advantages. The key is knowing how to communicate that value. And this is where pricing, presentation, and marketing become especially important.

It's no longer enough to simply list a home, take a few photos, and hope the right buyer comes along. We need to understand what buyers are comparing your home against, including nearby new construction communities, and position your property accordingly. Sometimes that means adjusting the asking price. Other times, it might mean discussing a closing cost credit or highlighting features that a new build doesn't include.

Every home deserves its own strategy.

Should You Wait for the Market to Change?
This was another interesting takeaway from Leo Pareja's presentation at eXpcon 2026. He explained that the housing market has already experienced a major slowdown in the number of homes being sold.

In fact, we're seeing a national sales pace similar to the mid-1990s, even though the country's population has grown significantly since then. But here's an important distinction. A slowdown in home sales doesn't automatically mean home values are collapsing.

It simply means fewer transactions are happening.

And while everyone seems to be waiting for lower rates, lower prices, or the perfect market conditions, life doesn't always follow the housing market.

Families grow. Jobs change. People relocate. Some homeowners are ready to downsize, while others need more space.

These things continue to happen regardless of what interest rates are doing.

So rather than asking, "Is this the perfect time to buy or sell?" I think a more helpful question is:
"Does making a move right now make sense for me?"

Because your personal circumstances matter just as much as the market itself.

My Advice? Look Beyond the Headlines.

Here's what I want you to take away from all of this.

If you're buying, don't overlook resale homes just because builders are offering incentives. Compare the monthly payments, the overall costs, the location, and what each property includes.

If you're selling, don't feel like you can't compete with new construction. You absolutely can, but your pricing and marketing strategy need to reflect what buyers are seeing in today's market.

And if you're not quite ready to make a move, that's perfectly okay, too.
There's nothing wrong with taking the time to understand your options.

What I wouldn't recommend is making a big financial decision based on a national headline or waiting for a market prediction that may never play out the way people expect.

Real estate is local, and what's happening in one neighborhood can be very different from what's happening just a few miles away.
That's why having the right information, and someone who understands your local market, makes such a difference.

Let's Talk About Your Next Move

Whether you're curious about a new construction community in Buckeye, considering a resale home in Goodyear, or wondering how your property compares to nearby listings, I'd love to help you explore your options.
No pressure, no complicated market talk. Just a conversation about where you are, what you're hoping to accomplish, and what makes the most sense for you.

Because at the end of the day, real estate isn't just about buying or selling a house. It's about making the right move for your life.

Market data note: National housing figures referenced in this article reflect August 2026 reports from the National Association of REALTORS® and the U.S. Census Bureau/HUD. Market commentary was informed by Leo Pareja's housing outlook presented at eXpcon 2026. Local pricing, inventory, builder incentives, and financing terms vary.

With gratitude,
Sandra McGann, REALTOR®