Unexpectedly Intriguing!
August 27, 2014

It's a mistake to treat housing prices as if they're a function of time. They're not. But we're going to treat them that way today to illustrate how differently the trend in median new home sale prices has behaved since institutional investors dialed down their year-long buying frenzy after July 2013. The chart below reveals what we find:

Trend in Trailing Twelve Month Average of Median U.S. New Home Sale Prices, July 2012 through July 2014

The initial inflation phase of the second U.S. housing bubble ran from July 2012 through July 2013. During that time, the trailing twelve month average of the median sale price of new homes sold in the United States increased at an average rate of approximately $2,476.50 per month.

From July 2013 through July 2014, the trailing twelve month average of the median sale price of new homes sold in the U.S. has increased at an average rate of $1,300.84 per month, just under 53% of the average rate recorded during the preceding 12 months.

Here's the big picture for the trends in the trailing year average of median new home sale prices since January 1963, which is as far back as the U.S. Census Bureau provides the data:

Trailing Twelve Month Average of Median U.S. New Home Sale Prices, January 1963 through July 2014

The current temporal trend growth rate of $1,300.84 per month for median U.S. new home sale prices is still well elevated over the the typical linear growth rate of housing prices observed outside of economic bubbles in the U.S. housing market of roughly $397 per month.

Data Source

U.S. Census Bureau. Median and Average Sales Prices of New Homes Sold in the United States. [Excel Spreadsheet]. Accessed 25 August 2014.


Labels:

About Political Calculations



blog advertising
is good for you

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Applications

This year, we'll be experimenting with a number of apps to bring more of a current events focus to Political Calculations - we're test driving the app(s) below!

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

Visitors since December 6, 2004:

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links
Charities We Support
Recommended Reading
Recommended Viewing
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.