It’s not just the weather that’s heating up as we move into spring. The cost of a newly constructed home is rising as the housing market enters its peak buying months.
The median price of a new home climbed to $337,200 in March, according to a joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. That’s up nearly 3.5% from February and 4.8% from a year earlier.
“Home prices tend to go up in the spring and the summer, because the types of homes selling are different than what’s selling in the fall and winter,” says realtor.com® Chief Economist Danielle Hale. “They tend to be larger and more family-oriented homes that sell for a little bit more.”
New homes are also quite a bit more expensive than existing homes, which have been previously been lived in. Existing homes were a median $250,400 in March, about 34.7% less than a new residence, according to the National Association of Realtors®. That’s because builders have to contend with regulatory delays and a limited supply of land and labor, all of…