September new home price drops to lowest in nearly 3 years, but not because builders are offering bargains

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September new home price drops to lowest in nearly 3 years, but not because builders are offering bargains
France Dernières Nouvelles,France Actualités
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September new home price drops to lowest in nearly 3 years

The median price of a newly built home dropped sharply in September to $299,4400. That was 8.8% lower compared with September 2018, according to the U.S. Census and was the lowest read since February 2016.

Exactly half of the homes that sold in September were priced below $300,000, compared with 43% one year ago. The actual number of home sales for properties priced below $200,000 doubled annually. Meanwhile the number of higher priced homes fell. "Certainly, the market is strong, but affordability I think has got to continue to carry the day, and we're still kind of balancing right on the -- we're teetering on the edge of a lack of affordability," said Marshall.

"The industry is experiencing a slow inventory mix shift to more affordable entry-level housing," said Robert Dietz, chief economist for the National Association of Home Builders. "It is still limited in terms of supply, and we need more, but the shift has been occurring over the last three-plus years."

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