Monthly Change in Home Value

The Case Shiller home value index for January was published this morning revealing a 1.26% decline in South Florida, the steepest one-month decline since April 2009.  Stay tuned, it's been a busy 'season' and hopefully the numbers for the next few months will be more encouraging.

Older Homes More Attractive in Current Market

WASHINGTON – March 23, 2011 – 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 now 48 percent higher than that of a home being resold, more than three times the gap in a healthy housing market.

 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?’” says Mark Vitner, a senior economist with Wells Fargo. 


The gap is widening because prices of previously occupied homes are falling fast, pulled down by waves of foreclosures and short sales. Cities with more foreclosures tend to have more resale homes that have languished on the market and are priced at a bargain. That makes new homes in those areas comparatively expensive.

 Contributing to higher new-home prices is the rising cost of building materials.



 Copyright © 2011 The Associated Press, Derek Kravitz, AP business writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. AP business writers Christopher S. Rugaber in Washington and Alex Veiga in Los Angeles contributed to this report.