After climbing for each of the past four quarters and six of the last seven, all-cash home purchases accounted for 11.2% of new-home sales in the fourth quarter of 2022, the largest share since 1990, according to the most recent Quarterly Sales by Price and Financing from the U.S. Census Bureau.
The median cash price fell from $450,600 to $370,900 during the fourth quarter of 2022, but regardless of financing type, home prices rose on an annual basis in 2022, the National Association of Home Builders' Eye on Housing reports.
Different sources of financing also serve distinct market segments, which is revealed in part by the median new home price associated with each. In the fourth quarter, the national median sales price of a new home was $467.700. Split by types of financing, the median prices of new homes financed with conventional loans, FHA loans, VA loans, and cash were $531,400, $330,200, $498,200, and $370,900, respectively.
Advertisement
Related Stories
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
