Those 2 things are NOT divergent.
What that says is folks can't or won't pay the overpriced premium for newer construction... and those that are buying are choosing less expensive existing homes...
When the buyers scale back, the bubble has burst.
Now since brand new construction isn't selling, builders will slash prices.. which mean those that have bought in the last few years will be undercut (in all but the most rapidly appreciating areas) and their newer but used homes will go down even more... many will be underwater. And the downward pressure from above will force a decline and the decline will work its way down through the market.
POP!
Careful...the rah rah drones will flame you using such irefutable logic...
The FED[BOJ,ECB] is/are directly responsible for this; printing and pumping the liquidity to the hilt...
When the YEN carry really begins to unwind here in the US later this year...then its going to really get interesting...
The big 3 central banks have set the stage for some troubling times ahead...
We have been living in a liquidity [not demand] driven economy for the last 2-3 years...
"Now since brand new construction isn't selling, builders will slash prices..."
Or, equally likely, the builders will stop building. Demand will exceed supply and the sales of existing homes will hit new records. No 'Pop'.