Here are two graphs I haven’t posted 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 July 2014 was $269,800; the average sales price was $339,100. “
The following graph shows the median and average new home prices.
Click 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 distressed sales now, it appears the builders have moved to higher price points.
The average price in July 2014 was $339,100, and the median price was $269,800. Both are above the bubble high (this is due to both a change in mix and rising prices). The average is at an all time high.
The second graph shows the percent of new homes sold 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.
The percent of home over $300K declined to about 20% in January 2009. Now it has rebounded to 43% of homes over $300K.
And only 8% of homes sold were under $150K in July 2014. This is down from 30% in 2002 – and down from 20% as recently as August 2011. Quite a change.
Earlier on New Home Sales:
• New Home Sales at 412,000 Annual Rate in July
• Comments on New Home Sales