Skip to comments.Median New Home Sales Rise (for $500k-$750k Homes), All Others Fall or Remain Constant
Posted on 09/26/2012 8:17:20 AM PDT by whitedog57
New homes sales fell from a revised print of 374,000 to 373,000 for August. This was a big miss by economists who were expecting 380,000 new home sales. Still, it remains NEAR a 2 year high. The median price of new home sales rose 11.16%. But housings summer wind is seemingly abating, as predicted.
So what is behind the increase in median prices of 11.16%? A closer look reveals that houses under #399,999 are dropped in terms of median prices. It was the $500,000-$749,000 segment that increased (and has increased during 2012).
So, The Feds pushing of Treasury and mortgage rates down has benefited households in the $500,000-$749,000 price segment the most. So at least new home sales in expensive cities (like Washington DC) continue to increase in price.
Lets see how housing does after taxmageddon kicks in!
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Just another campaign issue. Now obama can say only those making more than $250,000 AND have homes valued above $399,999 will be taxed. It’s not fair that only the richest Americans’ home values are rising.
500-750K in Annapolis Maryland will get you a three bedroom regular house. No elite anything here.
Sure. Government employees and bank employees are rolling in the bucks. Why shouldn’t they buy a $750k house? But this is NO INDICATOR of the health of the overall economy.
There are far, far fewer $500+ homes than sub $500k homes, so it simply goes that those homes will recover first. They are also a much better investment than cheaper homes as they crashed much harder than the cheaper homes. In Colorado,homes that were $250 became as low as $170k but $750k homes became $400k homes. That’s an $80k vs a $350k difference.