The Gap Between New and Existing Home Prices Widens to 40 Percent
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

Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »

Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »

New renderings show the public space that will be part of the huge new residential de... read »

The Townhomes at Michigan Park and Riggs Park Place are now selling their final homes... read »

Several large projects are in the works across the Potomac in Rosslyn while others ha... 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. Visit guides.urbanturf.com or 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