New Home Prices: Average Highest since 2008

New Home Prices: Average Highest since 2008

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.

From the Census Bureau: “The median sales price of new houses sold in August 2012 was $256,900; the average sales price was $295,300.”

The following graph shows the median and average new home prices.

New Home PricesClick on graph for larger image.

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 by PriceThe percent of home over $300K declined to 20% in January 2009. Now it has rebounded to around 35%. And less than 10% were under $150K.

Read more at http://www.calculatedriskblog.com/2012/09/new-home-prices-average-highest-since.html

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