by Bill McBride on 5/24/2016 03:08:00 PM
Tuesday, May 24, 2016
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 April 2016 was $321,100; the average sales price was $379,800."
The following graph shows the median and average new home prices.
Click on graph for larger image.
During the housing bust, the builders had to build smaller and less expensive homes to compete with all the distressed sales. When housing started to recovery - with limited finished lots in recovering areas - builders moved to higher price points to maximize profits.
The average price in April 2016 was $379,800 and the median price was $321,100. Both are above the bubble high (this is due to both a change in mix and rising prices).
The median is at a new high.
The second graph shows the percent of new homes sold by price.
Less than 2% of new homes sold were under $150K in April 2016. This is down from 30% in 2002. The under $150K new home is probably going away.
The $400K+ bracket has increased significantly.