Higher Quantity of New Construction Homes Sold in Q4 2017

Mar 01, 2018

Inventory problems related to construction costs will hamper the single-family housing market, even though the economy will continue to remain solid

New construction homes accounted for 16.4 percent of all single-family homes for sale during the fourth quarter of 2017, up from 14.2 a year earlier, according to new data from Redfin. The median price of new single-family homes that sold last quarter was $377,800, up 1.6 percent year-over-year.

In comparison to existing homes, new construction properties sold at an average premium of $86,400 in the fourth quarter. Existing home prices increased 7.3 percent year-over-year during the final three months of last year.

Raleigh, N.C., had the highest portion of new home sales during this period, with 31.2 percent of all homes sold being new construction. Austin, Texas and Nashville followed at 26.3 percent and 26.1 percent, respectively. At the other end of the spectrum, three of the four metro areas with the lowest shares of new construction sales were in New York: Buffalo (0.9 percent), Rochester (1.7 percent) and the Hudson Valley region (2 percent), with San Diego following at 2.2 percent.

"New homes are more expensive than existing homes, and their prices tend to grow at a slower rate," said Redfin Chief Economist Nela Richardson. "However, new homes' slower price growth belies their advantage to buyers in the hottest markets. Buyers in these highly competitive markets have been attracted to new construction as a way to avoid bidding wars. They often find it's easier to negotiate with a single builder than to compete with several buyers and negotiate with a traditional seller."

New construction homes accounted for 16.4 percent of all single-family homes for sale during the fourth quarter of 2017

About the author

Phil Hall

Link copied

Published

Mar 01, 2018

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular