A reader requested that I run an update of the post I put together a year ago: Is New Construction Getting Cheaper or Just Smaller?
Here are the updated charts comparing the size and price per square foot of new construction and re-sales since April 2009:
As you might expect, new construction continues to be about 15% larger than re-sales. Bigger is better, or so the homebuilders would have you believe.
On the other hand, the trend that we saw opening up last year of new construction selling for a non-trivial discount in terms of price per square foot has closed up entirely, with the two types of homes selling roughly on par with each other since last November.
Did last year’s discounts successfully move the majority of the excess new construction inventory? Time will tell, but it certainly appears that the days of getting a big new home for roughly the same prices as a smaller older home are behind us in King County.