The Gap Between New and Existing Home Prices Widens to 40 Percent
A new home on the market in DC.
Existing home prices are rising at a rate of 8 percent — much faster than incomes — but that’s nothing compared to the rise in new-home prices, The Wall Street Journal pointed out on Wednesday.
The National Association of Realtors’ chief economist Lawrence Yun said in a news conference on Wednesday that prices were rising too quickly given the disparity with incomes, a troubling sign for the housing market as a whole. But the 8 percent growth in existing home prices seen in March’s economic report isn’t too impressive when compared with prices in the new-home segment.
The price gap between new and existing homes has jumped to 40 percent, the Journal’s Real Time Economics blog noted. That’s partly because consumers have demonstrated a preference for new homes with fewer maintenance fees than old homes. But it’s also thanks to the rising share the priciest new homes are occupying in the segment.
Remember the $100 million spec house?
From Real Time Economics:
Although homes costing less than $300,000 still hold a slim majority of all new homes sold, the growth sector has been in more luxurious residences. Homes costing $500,000 or more accounted for almost 11% of new homes sold in 2014, up from 8% in 2011.
See other articles related to: national association of realtors, new home sales, new homes, the wall street journal
This article originally published at https://dc.urbanturf.com/articles/blog/the_gap_between_new_and_existing_home_prices_widens_to_40_percent/9799.
Most Popular... This Week • Last 30 Days • Ever
It has been a good start to the year for high-priced homes in the DC region.... read »
Roadside Development filed a sketch plan with Montgomery County this month for the 30... read »
The Matthew is located on 9th Street, overlooking the iconic Naylor Court and neighbo... read »
Dan Snyder donates house to charity; DC records priciest building sale since 2022; an... read »
This week's Best New Listings include an award-winning craftsman, a condo in a former... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro