Daily Real Estate News | Tuesday, September 13, 2016
When comparing single-family homes started last year by region, the median price per square foot can vary quite a bit.
For example, contractor-built homes in the Pacific division price per square foot averaged $168 while speculatively built homes in the East South Central division averaged $78 per square foot.
“At $168 per square foot, new contractor-built single-family homes in Pacific are the most expensive to build exceeding the national average of $105 per square foot by 60 percent,” notes the National Association of Home Builders on its Eye on Housing blog. The price per square foot excludes the cost of developed land.
New England has the second most expensive contract prices per square foot at $149 per square foot. The region also had the priciest spec houses last year with a median sales price of $144 per square foot.
Meanwhile, for home buyers searching for deals they may want to look South. The South Region had the least expensive spec homes, with median sales prices per square foot ranging from $78 in the East South Central division to $87 in the West South Central division. Contractor-built new-home starts were higher, ranging from $98 in the West South Central division to $100 in the East South Central and South Atlantic divisions.
“Typically, contractor-built custom homes are more expensive per square foot than spec homes after excluding improved lot values, suggesting that new custom home buyers are not only willing to wait longer to move into a new home but also pay extra for more expensive features and materials,” the Eye on Housing blog notes.
Source: “Sale and Contract Prices Per Square Foot in 2015,” National Association of Home Builders Eye on Housing blog (Sept. 12, 2016)
“Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission”