There’s a shortage of affordable homes, as you may have heard.
This chart, from the St. Louis Fed, shows the situation in living color.
Before the housing bubble burst in 2006 — and even before it actually began inflating — builders were constructing homes running, on average, under $150,000. Now, not so much. Earlier this year, there was a rebound in homes built in the next priciest range of $150,000 to $199,999. But even that’s trailed off.
The price bracket that seems to be picking up the most steam is the $300,000-$399,999 market segment. That makes sense; the median-priced new home was $309,700 in October.
That’s still pretty pricey for many would-be buyers, but it’s going in the right direction. The October median price was lower than year-ago levels for the second month in a row, in contrast to existing-home prices, which continue to surge higher.
See: Toll Brothers orders tumble, but housing market comeback may be in the cards
Source : MTV
