New Homes Cost 30-40 Percent More Than Existing Homes

The price differential between newly built homes and resale properties is growing wider, according to the National Association of Realtors. Historically, brand-new housing has cost about 15 percent to 20 percent more than existing homes. However, the price gap in the recent past has come in closer to 30 percent to 40 percent. In November, for example, the median price of a new residence was $280,900 — 36 percent higher than the $206,200 median for previously owned properties. “That suggests either existing-home prices are much cheaper in relation to the newly built homes and/or that there is just not enough new homes being produced,” speculated NAR chief economist Lawrence Yun. | Read More