New-Home Prices Pick Up Strength


Jay's Notes:  As values recover back to and above replacement or construction cost, builders will find it profitable to build again.  Some of the remaining values we have that are selling below replacement cost will probably be gone in the best markets in 6-12 months.  It is already gone in Phoenix and will be soon gone in markets like Atlanta and Charlotte.

Sales of new single-family homes posted the first annual gain in seven years as median prices continued to rise, the Commerce Department reports.
The median price of new homes increased to $248,900 last month, a 1.3 percent increase compared to November. The median price of new homes sold was up 9.6 percent in December compared to a year ago.
Meanwhile, new home sales increased nearly 20 percent from 2011 to 2012, the Commerce Department reports....
Source: “New-home Sales Post First Annual Gain in 7 Years,” Inman News (Jan. 25, 2013) and “New Home Sales Drop, But Prices Tick Higher,” Reuters (Jan. 26, 2013)