Irregularities between Twin Cities New Construction & Previously Owned Homes
Irregularities between New Construction Home Prices & Previously Owned Homes
At first glance the illustration below clearly illustrates the 10 year history of the gap between the median sales prices of Twin Cities area previously owned homes and new construction home sales prices. Historically markets have fluctuated monthly. The interactive red line represents the Median Sales Prices of previously owned homes in the Twin Cities over that past 10 years. Note the more extreme fluctuations that took place with the New Construction Median Sales Prices during each respective year (mouse over the blue or red line to determine the gap).
There are additional factors that influence the gap between new construction home prices and existing home prices such as: economic conditions, construction material costs and building codes. Consumers researching and potentially making decisions associated with new construction and existing homes should also consider the gap between the two. Any sales person can defend either position; however the illustration below clearly defines the gap between the two with respect to the median sales price norms in the area. Before making any decisions between the two, take the time to become better informed. My contact information is below.