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Price gap between new and existing homes narrowing, some experts find

Aug. 27, 2014

Existing homes tend to be cheaper than newly built homes, giving the former an advantage in sales in recent months. But some experts say the price gap is narrowing.

The Wall Street Journal's Kris Hudson reports that the price gap between existing and new homes has averaged 36.5 percent over the past two years. But because new construction lately has been targeted to upper tier buyers, economists speculate that many more potential buyers look to purchase existing homes instead. A few experts and builders point to emerging factors that may slow down new-home price gains, which in turn would narrow the price difference between existing and new homes.

Read about these factors in this Wall Street Journal blog post.

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