WASHINGTON — A new home, the dream of many would-be buyers, makes less and less financial sense in many places.
A wave of foreclosures has driven down the cost of previously occupied homes and made them even more of a comparative bargain. By contrast, new homes have become more expensive.
The median price of a new home in the United States is 48 percent higher than that of a home being resold, more than three times the gap in a healthy housing market.
Such a disparity can be a drag on the economy. New homes represent a small fraction of sales, but they cause economic ripples, bringing business to construction and other industries.
“A lot of people are saying, ‘If I can get a great deal on a home already on the market, why go through the headaches of getting a new home?’ ” said Mark Vitner, a senior economist with Wells Fargo. “There’s a relatively small group of people who have the credit, have the down payment and are secure in their jobs that can go out and buy new.”
The gap is widening because prices of previously occupied homes are falling fast, pulled down by waves of foreclosures and short sales. Short sales occur when lenders let homeowners sell for less than they owe on their mortgage.
The median price of a new home has risen almost 6 percent in the past year to $230,600, even though last year was the worst for sales in nearly a half-century.
