![\"King](\"http:\/\/seattlebubble.com\/blog\/wp-content\/uploads\/2010\/08\/New-Construction-Premium_2010-07-600x435.png\" "\\"King")
<\/a><\/p>\nFor the 12-month period between April 2009 and March 2010, new construction was selling for about 20% more than re-sales, but beginning in April of this year, that difference shrank dramatically, falling to as little as 6% in July.<\/p>\n
With a swing that large, I’m inclined to question whether my data is correct or not, but with four months in a row telling the same story, I think there may be something real going on here. Unfortunately my data only covers King County, so I am unable to easily see if this is a widespread trend, or just something brought on by one or two big developers slashing prices.<\/p>\n
My working theory right now is that this shrinking new construction premium is the result of a couple of factors. I think part of it may be that some builders rapidly adjusting their strategies to succeed in the still-depressed housing market. The other scenario that I think is in play here is builders that bought bank-owned land on the cheap from banks and are taking advantage of low materials and labor costs to put out a noticably less expensive product.<\/p>\n
Whatever the cause may be, it is definitely an interesting trend to keep an eye on if you’re interested in buying new construction.<\/p>\n","protected":false},"excerpt":{"rendered":"
I was playing around with the sales data I’ve downloaded since April of last year when I noticed a noteworthy trend in the sales of new construction. If you split each month’s sales into new construction and re-sales, then look at the median prices of each group separately, an interesting pattern emerges. What I’ve plotted…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8,616],"tags":[123,699],"coauthors":[],"class_list":["post-12265","post","type-post","status-publish","format-standard","hentry","category-stats","category-counties","tag-construction","tag-new-construction"],"yoast_head":"\n
New Construction Price Premium Nearly Vanishes \u2022 Seattle Bubble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"New Construction Price Premium Nearly Vanishes \u2022 Seattle Bubble\" \/>\n<meta name=\"twitter:description\" content=\"I was playing around with the sales data I’ve downloaded since April of last year when I noticed a noteworthy trend in the sales of new construction. If you split each month’s sales into new construction and re-sales, then look at the median prices of each group separately, an interesting pattern emerges. What I’ve plotted...\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/seattlebubble.com\/blog\/wp-content\/uploads\/2010\/08\/New-Construction-Premium_2010-07.png\" \/>\n<meta name=\"twitter:creator\" content=\"@The_Tim\" \/>\n<meta name=\"twitter:site\" content=\"@SeattleBubble\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The Tim\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/\",\"url\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/\",\"name\":\"New Construction Price Premium Nearly Vanishes \u2022 Seattle Bubble\",\"isPartOf\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/seattlebubble.com\/blog\/wp-content\/uploads\/2010\/08\/New-Construction-Premium_2010-07-600x435.png\",\"datePublished\":\"2010-08-26T16:20:31+00:00\",\"author\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/#\/schema\/person\/7de7c0dd14bee1a2c67f7ce86bc4505f\"},\"breadcrumb\":{\"@id\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/#primaryimage\",\"url\":\"https:\/\/seattlebubble.com\/blog\/wp-content\/uploads\/2010\/08\/New-Construction-Premium_2010-07.png\",\"contentUrl\":\"https:\/\/seattlebubble.com\/blog\/wp-content\/uploads\/2010\/08\/New-Construction-Premium_2010-07.png\",\"width\":\"912\",\"height\":\"662\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/2010\/08\/26\/new-construction-price-premium-nearly-vanishes\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/seattlebubble.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"New Construction Price Premium Nearly Vanishes\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/#website\",\"url\":\"https:\/\/seattlebubble.com\/blog\/\",\"name\":\"Seattle Bubble\",\"description\":\"local\u00a0real\u00a0estate\u00a0news, statistics,\u00a0and\u00a0commentary without\u00a0the\u00a0sales\u00a0spin.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/seattlebubble.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/#\/schema\/person\/7de7c0dd14bee1a2c67f7ce86bc4505f\",\"name\":\"The Tim\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/seattlebubble.com\/blog\/#\/schema\/person\/image\/37756956c11dcc50d2559761ffa5ee70\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/19e5770990a1681615608091b2de571b10c3e03bbac7d07bb2ae15297ee72fbc?s=96&d=retro&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/19e5770990a1681615608091b2de571b10c3e03bbac7d07bb2ae15297ee72fbc?s=96&d=retro&r=g\",\"caption\":\"The Tim\"},\"description\":\"Tim Ellis is the founder of Seattle Bubble. 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<\/a><\/p>\n