"Their" is the possessive of "they", as in "They live there but is isn't their house." Here you want to indicate that the house belongs to them. "They're" is a contraction of "they are", so that to say, "They're over there in their new house" means "They are over at that place in the new house that belongs to them."
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"Their" is the possessive of "they", as in "They live there but...
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