Pulled this from this video: https://www.youtube.com/watch?v=JuZRhbUroHA
Essentially the existing v. new home market has never been this inverted, and typically it will always revert back to its mean. There’s a million variables at play, but I imagine it would be like a used car costing much more than a new car, it’s just real estate is a slower and more illiquid market that allows crazy distortions to happen like this.
h/t Suspicious-Bad4703