Home values are on the rise in many places across the country, so it will come as good news to homebuyers to hear that the median price for newly constructed homes continued to drop in January.
The median home price for a new construction was $278,800 in January, a total that was down 4.5 percent from a year earlier and 5.7 percent from December, Realtor.com reports. The reason for the price drop was because more affordable, entry-level homes were constructed as builders stepped back at least a little bit from the bigger-is-better luxury market homes they have been focusing on recently. New home prices are still well above those of existing homes, which had a median price of $213,800 in January.
However, the drop in new home prices did not result in more of them being sold. Sales of newly constructed, single-family homes dropped 9.2 percent from December and 5.2 percent from January 2015. It should be noted, however, that January is typically the slowest month of the year for new home sales.