Many economic reports and stories look at the mid-2004 through 2006 as a standard for comparison rather than the aberrant period that it was.
This means the current new-home market appears to be in much worse shape than it actually is; especially when it comes to pricing. In those two years, the closing price of a single family production home rose 51%, while in the 25 years prior, such homes only rose at a 5% rate annually.
If you started in 2003 and added 5% annually through 2009, the average price of a home, not including the bubble years, would have been $290,985. The current national average is $295,800. Thus, “We are not experiencing unprecedented declines in home values. Instead, we are experiencing an unprecedented return to normal.”
- Jim Lewis, President: Charles Wayne Consulting 2009 -