Median home prices are on the rise in our market, and because of several factors, the gap in pricing between new construction and resale homes is increasing.
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What’s happening with pricing for new construction homes and resale homes in our market?
The median price range of homes has increased over the last quarter in our marketplace. Here’s how the median price increases breakdown in specific areas:
- In Evans, it has risen 4% to $239,900.
- In Martinez, it has risen 9% to $152,000.
- In Augusta, it has risen 17% to $112,250.
- In North Augusta, it has risen 5% to $149,900.
- In Aiken, it has risen 4% to $147,000.
With the cost of lumber, concrete, and other building supplies increasing, the gap between new construction and resale homes is increasing.
When talking about price per square foot for new construction homes, there are several factors to take into account. Because we’re comparing it to the price per square foot of resale homes, one of the biggest factors is land. Another factor to take into account is whether the home is on a slab or a crawl space. A crawl space is more expensive to build and can add $8,000 to $10,000 to the cost of a home.
The gap between new construction and resale homes is increasing.
Whether it’s one-story or two-story home also substantially impacts its price. Buyers are sometimes surprised to learn that a two-story home is less expensive to build than a one-story home. The reason for this is one-story homes have larger foundations because they need to fit all the living space and bedrooms within that single story. Two story homes also have smaller rooflines because they only cover the space for the living room, and since the bedrooms are upstairs, they’re within the same roofline. This is why you see a lot of two-story homes in new construction neighborhoods—buyers can get more for their money.
The average price per square foot for new construction homes ranges from $100 to $150. Of course, this varies according to the material used for the exterior construction of the home. Stone is the most expensive, followed by brick, hardiplank, and vinyl siding.
For resale homes, the average price per square foot is impacted a lot by the schools in the area. Here’s how the same five areas fare as far as the average price per square foot for resale homes:
- North Augusta—$89
The advantage of buying a new construction home is you’re getting a brand-new home that you likely won’t have to make any repairs or upgrades to for the next 10 years. However, remember that prices are impacted by location.
If I can help you with buying, selling, or building your next home, give me a call. I’d be glad to help.