Weekly Special | October 15, 2018

Single Family Detached Homes Hit Record High

The average price of single family detached homes has hit a new high of nearly $236K, up more than 6% from the previous high reached early in 2007.

Low mortgage interest rates are allowing buyers to purchase “more” home than they could have in the past, and it is translating to higher prices.

Often times, real estate reports suggest that this directly equates to appreciation for homeowners, but we have to dig a little deeper to ensure that rising prices paid by buyers means more money for sellers.

The measurement of average home prices includes new construction, and the cost to build homes today is significantly higher than it was back in 2007.

Home Values NOT At Peak When we look at similar information for existing home values, we find that homes today have reached values found in 2006 before the crash of the housing market, and 2009 after the crash.

Existing home values are roughly 11% lower today than they were when the market crested, but they are making up ground rapidly due to low inventory. It’s a good time to be a home seller!

The original one-page Weekly Special PDF is still available.