Chief Economist and Senior Vice President of Research at the National Association of Realtors Lawrence Yun offers comparisons between prices of new and existing homes.
Newly constructed homes come at a higher price than an existing home, and recently the price gap between these two types of homes has grown from between 15 and 20 percent to 30 to 40 percent.
During the month of November, the median price of a newly constructed home cost $280,900 and the median price for an existing home was $206,200, a gap of 36 percent. In addition to the lower cost of an existing home, new homes aren’t being built as quickly as they’re needed, causing prices to rise. Despite the growing gap in the cost of existing and new homes, the price of an existing home has grown by 25 percent in the last three years.