INSIDE TUCSON BUSINESS:  Mon., July 27, 2009

More than half of new homes sell for less than $200,000

By Joe Pangburn

It’s now official: New home sales prices have dropped to the point that more than half that were sold in June were at prices below $200,000.  In fact, the median sales price for the month tumbled more than $21,000 — more than 10% — from May to $183,590, according to the monthly Southern Arizona Housing Market Letter by John Strobeck of Bright Future Business Consultants.

“For several months I have been predicting that the median new price would fall below $200,000. This happened in June in a big way,” Strobeck wrote in his report. “Interestingly enough, the price range of below $150,000 had the second highest volume of any price range. Previously, this price range barely existed, however, builders have been moving to lower priced homes and we have been seeing increasing volumes throughout 2009.”

In June, 20% of new construction home sales closed at under $150,000, making it the second biggest group behind the 42% that were closed in the price range of $150,000 to $200,000.  Builders selling homes priced below $150,000 included D.R. Horton, KB Home, Habitat for Humanity, Lennar and Mark Wright Homes.