In an unexpected twist, new home prices are now less expensive than existing ones, flipping a long-standing trend and shaking up buyer dynamics. Meanwhile, luxury lots scorched by Malibu wildfires are hitting the market, offering both opportunity and concern. And in a notable credit shift, major private mortgage insurers have committed to implementing VantageScore 4.0 for loans backed by Fannie Mae and Freddie Mac. This week’s stories offer crucial insights into evolving new home prices, fire-driven real estate dynamics, and the changing credit landscape—all key signals for industry pros and clients alike.
New Home Prices Now Lower Than Existing Homes
Read the Full Story → [SAN]
For the first time in over a decade, new home prices have dropped below those of existing homes. According to Redfin, new construction homes are selling for about $3,000 less than existing homes nationwide.
This reversal is driven by builder incentives, including mortgage rate buy-downs, which are helping new builds stay competitive. Many existing homeowners are reluctant to sell due to their low locked-in mortgage rates, keeping inventory tight and prices high in the resale market.
Homebuilders have also ramped up construction in recent years, creating more inventory and allowing them to offer better deals—especially as they look to keep sales moving despite higher interest rates. The trend in new home prices could create a lasting shift in buyer preferences.
Malibu Wildfire Lots Hit the Market
Read the Full Story → [Realtor.com]
In the wake of the 2018 Woolsey Fire, numerous vacant residential lots in Malibu have come up for sale. These properties, previously home to luxury estates, are now being sold at a steep discount.
Interestingly, the sellers are a mix of longtime California homeowners and investors. Some owners have opted not to rebuild, either due to cost, age, or the emotional toll of the disaster. Others see the opportunity to cash out amid rising land values.
One developer, Mowbray, and a company called Zuru Tech have shown particular interest in acquiring these fire-damaged lots to introduce pre-fabricated luxury housing, signaling a new development model for high-end rebuilds.
USMI Members to Implement VantageScore 4.0
Read the Full Story → [Scotsmanguide]
The U.S. Mortgage Insurers (USMI) trade group announced that all its members are prepared to adopt VantageScore 4.0 for loans purchased by Fannie Mae and Freddie Mac.
VantageScore 4.0 includes more inclusive credit evaluation models, incorporating trended data and excluding some medical debt, which may benefit a broader range of borrowers.
The move aligns with FHFA’s push to diversify credit scoring options beyond the traditional FICO models and is expected to create a more equitable mortgage approval process, particularly for younger or credit-thin applicants.
Loan Officer Perspective
These stories present excellent talking points for loan officers looking to educate and engage clients. The trend in new home prices flipping below resale homes provides a strong case for promoting builder relationships and exploring incentives that benefit buyers. With VantageScore 4.0 in play, it’s also a good time to revisit credit education strategies with potential borrowers who may now qualify under the new scoring models.
Real Estate Agent Perspective
Agents can leverage this week’s news to guide both buyers and sellers. New home prices becoming more affordable than existing ones makes new builds a more viable option, particularly for first-time buyers. Meanwhile, Malibu’s land listings offer an intriguing angle for clients open to development or investment opportunities. These stories allow agents to demonstrate market insight and forward-thinking strategies.
Home Buyer & Seller Perspective
Buyers should know they may find better deals on new home prices than resales—a reversal that could change how they approach their home search. For sellers, especially in high-demand areas, this is a signal to price competitively. And with VantageScore 4.0 on the horizon, it’s worth checking in with your loan officer to see if qualification may have improved. Have questions or ready to start? Reach out to the real estate pro who shared this post with you!
Frank’s Thoughts
The Malibu story struck me. It’s not just about land sales—it’s about resilience, choices, and reinvention. Some homeowners are stepping away after the trauma of wildfire loss, while others are seizing the moment to build something new. It’s bittersweet but full of possibility.
What’s fascinating is how companies like Zuru Tech are looking to rebuild Malibu using prefab construction. It might not be the Malibu of old, but it could be a new model for luxury development that balances efficiency with style. Definitely worth keeping an eye on.
The larger lesson? Even out of destruction, opportunity can rise. As professionals, we can help guide people through these transitions—whether it’s rebuilding a dream home or finding a fresh start elsewhere.
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