by Bill McBride on 9/26/2012
As part of the new home sales report, the Census Bureau reported that the average price for new homes increased to the highest level since August 2008.
The following graph shows the median and average new home prices.
During the bust, the builders had to build smaller and less expensive homes to compete with all the distressed sales. With fewer foreclosures now, it appears the builders are moving to slightly higher price points.
The second graph shows the percent of new home sales by price. At the peak of the housing bubble, almost 40% of new homes were sold for more than $300K – and over 20% were sold for over $400K.
- New Home Sales at 373,000 SAAR in August (woodonfire.wordpress.com)
- New Home Prices: Average Highest since 2008 (calculatedriskblog.com)
- New Home Sales and Distressing Gap (woodonfire.wordpress.com)