‘Median’ Americans Now Shop For $408,000 Homes

‘Median’ Americans Now Shop For $408,000 Homes

Another month, another fresh record for median new home prices in the US. The median sales price of new homes rose 18% in October, the government said Wednesday. At $407,700, the median price is now nearly $80,000 higher than it was in January of 2020 (figure below). The average new home went for $477,800 last month, up more than $20,000 from September. I continue to view this situation as wholly unsustainable. At some point, the inexorable price surge will lead to demand destruction, alth
Subscribe or log in to read the rest of this content.

3 thoughts on “‘Median’ Americans Now Shop For $408,000 Homes

  1. This is going to take time and have to ramp up to have a meaningful impact on the housing shortage, but homebuilders are getting into factory built homes which cost, on average, under $100,000 and then are able to be quickly constructed on site- so a lot in the pre-established community must also be purchased. All in, typically under $250,000.
    Unlike mobile homes, these are not moveable and qualify for traditional mortgages.
    There was a good article in Monday’s WSJ.

  2. “I continue to view this situation as wholly unsustainable. At some point, the inexorable price surge will lead to demand destruction, although the rising share of investors in the market might delay the inevitable”.

    Hmm… if the institutional investors are comparing RE to FI and bonds right now yield negative, while resi. yields 4-5%, there’s still some margin for further compression…

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

NEWSROOM crewneck & prints