New Homes Have Gotten Pricier

New Homes Have Gotten Pricier
Article by Daily Real Estate News | April 5, 2017

HomeConstruction500wOver the last 10 years, the price distribution of new homes has changed significantly, as new homes have grown more expensive. Builders blame a weakness among first-time buyers and rising regulatory burdens as the reason for the shift in focus in the pricier tiers of the new-home sector following the Great Recession.

The number of new homes that sold for less than $250,000 started to decline prior to the Great Recession. Sales in this segment have not returned to levels set in 2006, particularly for homes with prices below $149,000, according to an analysis by the National Association of Home Builders, detailed on its Eye on Housing blog.

Indeed, new homes that sold for $150,000 to $199,999 and those that sold for $200,000 to $249,000 dropped to a low during the recession. They have been on a slow, recovering pace ever since, the NAHB notes.

The main drivers in the new-home market are homes that sold above $250,000. New homes priced between $300,000 and $399,000 had the highest volume prior to the Great Recession and have been the fastest to recover since then, the NAHB notes.

Source: “New Home Sales Price History,” National Association of Home Builders’ Eye on Housing blog (April 4, 2017); National Association of REALTORS®, Daily Real Estate News 040517

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
(615) 512-9836 cellular • (615) 915-5901 facsimilekb@bargers-solutions.com email
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Author: Kenneth Bargers

REALTOR®, Tennis Player, Titans & Vols Fan, Nashvillian... learn more about me at http://www.bargers-solutions.com/about-me

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