Monday, January 27, 2014

New Home Prices: New Record for Average and Median in 2013

by Bill McBride on 1/27/2014 03:25:00 PM

Here are two graphs I haven't for some time ...

As part of the new home sales report, the Census Bureau reported the number of homes sold by price and the average and median prices.

From the Census Bureau: "The median sales price of new houses sold in December 2013 was $270,200; the average sales price was $311,400."

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 have moved to higher price points.

The average price in 2013 was $320,900, above the previous high of $313,600 in 2007. The median price in 2013 was $265,800, above the previous high of $247,900 in 2009.

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 39%. And less than 10% were under $150K in 2013.

Earlier on New Home Sales:
New Home Sales at 414,000 Annual Rate in December
New Home Sales: Weak Finish, Solid Growth in 2013

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