Weekly Special | May 21, 2017
What New Construction Is Doing To The Market
The difference in cost between new construction and existing homes has reached a new high. Right now, when comparing price per square foot of new homes sold to the same for existing homes, the difference is 54%.
In simple terms, you will pay 54% more for a new home compared to buying the same sized used home (overly simplified but useful when tracking long-term trends).
As the market continues in its recovery, more new homes will be needed, and new homes are more expensive to build today than they were in the past.
The result of the rising cost of new home construction is and will continue to resonate in the resale market.
Expect to see high appreciation rates in the hottest segments of our existing homes market for several more years.
This issue went with a longer report on our blog: read the full blog post. The original one-page Weekly Special PDF is still available.
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