|
New Home Prices
|
|
 |
| MOST RECENT STATISTIC: |
$204,000(median)
$235,300(average) |
| GRADE: |
F |
| PERIOD COVERED: |
July 2010 |
| Date Released: |
08/25/10 |
| Next Released: |
09/24/10 |
|
|
| |
07/10 |
06/10 |
05/10 |
07/09 |
07/08 |
|
|
| Median Price (000) |
$204.0 |
$217.0 |
$227.8 |
$214.2 |
$237.3 |
|
| Change |
- |
(6.0%) |
(10.4%) |
(4.8%) |
(14.0%) |
|
|
Source:
U.S.
Census Bureau
U.S.
Department of Housing and Urban Development |
Analysis for the Housing Market
By:Ken Lee
In July, median new home prices declined to $204,000 from a revised June figure of $217,000. This was the second straight month that new home prices declined and the lowest they have been since December 2003. Median new home prices are down 6.0% from last month and are 4.8% lower than they were this time last year.
New home prices continue to be pressured by weaker demand, high unemployment, weaker economic growth, and competition from foreclosures and short sales in the existing home market. Builders have had to cut prices and boost incentives to compete with lower-priced existing homes. Median new home prices do not reflect the use of incentives which would most likely drag the true value of new homes down even further.
**New homes data is subject to large statistical and sampling errors.
Definitions and Importance for the Housing Market
By:Ken Lee
Median prices for new home sales are from the U.S. Census Bureau. The data is derived from a survey that is primarily based on a sampling of houses from residential building permits. The median price indicates the mid-point of new home prices; one-half of all new home prices are above and one-half of all new home prices are below the median price. The median price differs in definition from the mean new home price, which is the average of all new home prices. If the average price is higher than the median price, it is an indication that the distribution of home prices is concentrated, or "skewed", towards higher values.
New Homes Sales includes some units whose permits were multifamily. The sample excludes owner-built houses, contractor built houses, units built to be rented, and manufactured housing. Multifamily units are included if the units are side-by-side, have separately metered utilities, include a firewall, and were sold to a buyer.
For more information on median and mean home prices, go to:
http://www.census.gov/const/
c25_curr.html
http://www.census.gov/const/www/newressalesindex.html/
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