The US Home Buyers Prefer More Expensive Homes

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The sales of both existing and newly built homes are on the rise. This has led to an increase in the median home price as well. At the same time, much of this increase is attributed to the growth in the sales of more expensive homes. Their share is increasing while the share of sales of the most affordable homes is diminishing significantly.

The median home price in May 2014 was $180,000. It rose by 6% from April and by 13% from May 2013. The considerable increase in the median price is attributed primarily to the shift of home buyers towards more expensive homes. Their sales increased significantly while the sales of the most affordable units actually marked a considerable decline.

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The sales of homes over $200,000 rose from May 2013 to May 2014 while the sales of those below $200,000 decreased. The sales of the most expensive residential properties in the market raging from $2 to $5 million marked the highest increase in share. It was 26%. The sales of homes worth between $750,000 and $2 million also achieved a rise in their share of over 20%. The sales of homes worth between $300,000 and $750,000 increased their share by well over 10% with those worth between $400,000 and $500,000 experiencing the highest share increase in this segment (17%).

The sales of homes worth less than $200,000 followed the opposite trend. The share of sales of homes worth between $100,000 and $200,000 went down 5% from the previous year. The share of sales of residential properties from $50,000 to $100,000 was 13% smaller in May 2014 compared to May 2013.

The shift towards more expensive homes is explained with the ever growing prices in the largest metropolitan areas and with the fact that residential properties are becoming lucrative investments once again. At the same time, the most affordable properties still remain unreachable to many first-time home buyers who do not meet the tighter mortgage requirements.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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