"Over the past year, the median price of an existing home sale went from $210,000 to $224,000, a 6.7% gain. On the other hand, the median price of a new home sale went from $315,065 to $318,660, a 1.1% gain. This may indicate two things. One is that home builders, given the cost of building a new home and the extensive costs added by regulation and fees, are finding it difficult to meet what is the median of the resale market. If they could do so at a reasonable margin, they would, of course, do so. The other is that despite this, the ratio of the cost of a new home to a resale home, while still about the approximately 125% historic norm, is moving down from the very high ratios seen in 2009-2012. As the ratio continues to decline, new homes will become more competitive with existing homes."
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