New-Home Prices See First Drop in 7 Years

Redfin reports that new-construction sale prices fell 1% year over year in the first quarter of 2019, the first price drop in seven years.

The drop puts new-home prices at a median of $363,900. Redfin also reports that while the median sales prices for existing homes continued to grow in the first quarter of 2019, they did so at the slowest pace in seven years, up just 1.5% to $282,900. The first quarter also saw a decline in sales and a rise in inventory.

The small decline in new-home sale prices and sales and the rise in supply were expected. We first reported that demand for new homes was cooling in the second half of 2018 as builders started dropping prices and offering incentives to agents and buyers showing interest in new construction, such as free design upgrades.

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