Existing home prices are expected to decline in many U.S. cities as sellers respond to price cuts by homebuilders, who have lowered new home prices by about 15% since 2022. The typical home price is now nearly five times the typical income, exceeding historical affordability norms. New homes are currently priced lower than existing homes, partly due to smaller sizes and discounts. However, some economists predict modest price increases in certain regions, reflecting varied market conditions nationwide.