Breaking the norms

Today’s edition is proof of why it’s so important to stay up to date on the latest numbers. 

We are seeing trends that go against conventional thinking and change the way we view the entire market.

Our first story does just that. A new NASB report shows that, nationwide, existing homes are more expensive than new homes. You might have to repeat that once or twice to your clients. They might not believe it!

Our second story is another game-changer. Right here in Los Angeles, the amount of all-cash deals has just reached a staggering level. 

But while the market might be a little abnormal, your day-to-day approach should never be! In today’s Foundation Plans, we’ll give you some pointers on how to build a consistent game plan, and why it’s so crucial.

Now let’s dig into today’s Blueprint!

– James and David

Existing homes are more expensive than new homes

In a reversal of the historic norm, existing single-family homes are now more expensive than new ones nationwide. According to the latest NAHB report, tight resale inventory and steady new home supply pushed the national median price of new homes down to $410,800 in Q2, while existing home prices rose to $429,400. 

This continues a trend we’ve been seeing. New home prices (down 0.9% YoY) marked their ninth-straight quarterly decline, while existing home prices (up 1.7% YoY) marked their eighth-straight quarterly increase.

Note: there are huge regional differences here. This trend is most pronounced in the West, where existing homes outprice new homes ($675k vs $570k) due to land constraints and prime locations. In the South, both types of homes are selling for around $375k. However, in the Northeast and Midwest, new homes continue to outprice existing homes. 

Our take

Buyers often assume new construction comes at a premium, but in today’s market, that’s clearly not always true. For agents, this is a chance to reset buyer expectations and spotlight the value of move-in-ready new builds—especially in areas where price gaps are narrowing or even reversing. The key is knowing your local data and helping buyers see where the real value lies.

Ultraluxury homes are fueling all-cash deals in Los Angeles

All-cash sales are soaring in Los Angeles, especially at the top of the market. This spring, one in four buyers in L.A. County paid in cash, the highest share in over a decade, according to Realtor.com. 

Ultraluxury buyers are driving the trend. Here are the percentages of deals that were all-cash:

• 25.4% of homes sold between $1M–$5M

• 54.3% of homes sold between $5M–$10M

• 56.7% of homes sold over $10M

Also note: international buyers accounted for 15% of L.A. luxury sales this spring. Nationally, foreign buyers purchased $56 billion in U.S. real estate from April 2024 to March 2025.

Our take

There is a new definition of luxury. In Los Angeles, ultraluxury now starts around $20 million, and cash-rich buyers – from celebrities to global investors – are scooping up finished, move-in-ready estates. These buyers aren’t chasing deals or watching rates; they’re curating lifestyle assets and building multicoastal portfolios. For agents, the playbook here is different: it’s less about financing and comps, and more about discretion, access, and understanding what makes a home collectible. In this world, homes aren’t just investments; they’re statements of taste, privacy, and identity.

Inventory surges in key states

Active listings rose 25% nationally between July 2024 and July 2025, turning many once-hot markets into balanced or even buyer-friendly territory, according to ResiClub. While inventory is up in most areas year-over-year, supply remains tight in much of the Midwest and Northeast, where sellers held more leverage this past spring. However, twelve states are now well above pre-pandemic 2019 inventory levels.

Here are the top 10 markets where inventory levels have surpassed 2019 inventory levels:

1. Texas: +32%

2. Tennessee: +31%

3. Washington: +31%

4. Arizona: +30%

5. Colorado: +29%

6. Florida: +29%

7. Utah: +23%

8. Idaho: +22%

9. Hawaii: +22%

10. Oklahoma: +7%

Our take

Rising inventory changes the game. In states where supply is now above pre-pandemic levels, pricing power is shifting fast. For agents, this is a cue to set realistic pricing expectations with sellers, prepare buyers for more negotiation leverage, and track days on market closely. Market momentum is local, but inventory is the clearest signal of who holds the upper hand. That’s why we believe it's very important for agents to monitor active listings and months of supply closely.

The news that just missed the cut

• The income your clients need to buy a house in every state

• How to ask another agent to film their listing

• Ways to know whether your real estate business is above average

• A real estate empire built on post offices

• Chris Pratt relists his mansion at a major discount… after moving into Katy Perry’s home

Foundation Plans

Advice from James and David to win the day

Today’s market tilts in favor of buyers. While each client is unique, the way you show up shouldn’t vary. Professionalism, preparation, and proactive service are what build trust and repeat business. Below are four best practices to help you deliver consistent value to every buyer in any market. In Friday’s edition, we’ll finish off the mini-series with our final set of best practices. 

1. Get to the heart of their needs – Use a thorough buyer questionnaire to uncover what truly matters—budget, location, timeline, lifestyle needs, and must-haves. Dig deep. The better you understand their situation, the more precise and efficient your guidance will be.

2. Demystify financing – Not every buyer fits neatly into a 30-year fixed mortgage. Know the basics of major loan programs and explain financing terms clearly. Most importantly, connect clients with a trusted lender who can tailor options to their needs. Clarify the differences between pre-qualification, pre-approval, and loan commitment—and why pre-approval is the bare minimum in today’s market.

3. Plan for every scenario – Smart agents anticipate, not just react. Ask the strategic questions:

• Are they also selling a home?

• Are they relocating, downsizing, or investing?

• Do they need to sell before they buy?

• Can they compete in a multiple-offer situation?

• Are their expectations aligned with reality and inventory?

• Should they consider new construction?

Answers to these shape your game plan—and help buyers avoid costly surprises.

4. Lead with communication – The #1 complaint from buyers isn’t price or process—it’s poor communication. Don’t let them wonder what’s next. Keep them informed, prepared, and confident at every step. You’re not just an agent, you’re their guide. Own that role.

Agents: there’s only one security system you can trust to keep your clients’ properties safe from vandals, thefts and property damage: SimpliSafe. We love SimpliSafe’s home security systems because they can actually stop crimes before they start. Unlike most systems, SimpliSafe doesn’t wait until someone is already inside to sound the alarm. If someone is lurking on your property, live agents take immediate action to let them know they’re on camera and need to leave the premises. That’s how you stop crime before serious damage is done. This week only, the Blueprint readers get an exclusive discount:

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“The only person you are destined to become is the person you decide to be.” – Ralph Waldo Emerson

Take ownership of your life, friends. What you’re not changing, you’re choosing. Want to lose weight? Change it. Want a higher CGI? Change it. Whatever the goal, the path is the same: make the move. Decide to become the person you want to be, and then act. Don’t just think about it.

– James and David