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 May 2021 was $374,400. The average sales price was $430,600.”
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 May 2021 was $430,600, up 17% year-over-year. The median price was $374,400, up 18% year-over-year.
The second graph shows the percent of new homes sold by price.
The $400K and greater than $500K+ brackets increased significantly over the last decade. A majority of new homes (about 61% in May) in the U.S., are in the $200K to $400K range.