As part of the new home sales report released yesterday, the Census Bureau reported the number of homes sold by price and the average and median prices.
From the Census Bureau: “The median sales price of new houses sold in July 2020 was $330,600. The average sales price was $391,300.”
The following graph shows the median and average new home prices.
During the housing bust, the builders had to build smaller and less expensive homes to compete with all the distressed sales. When housing started to recovery – with limited finished lots in recovering areas – builders moved to higher price points to maximize profits.
The average price in July 2020 was $391,300, up 2.5% from June, and down 2.9% from the peak in 2017. The median price was $330,600, down 1.9% from June, and down 3.9% from the peak in 2017.
The average and median house prices have mostly moved sideways since 2017 due to home builders offering more lower priced homes.
The second graph shows the percent of new homes sold by price.
The $400K+ bracket increased significantly since the housing recovery started, but has been holding steady recently – and declined over the last year. A majority of new homes (about 62%) in the U.S., are in the $200K to $400K range.