Would you buy a new car without doing your research and making a budget? Probably not. It’s the same when you’re thinking about buying a home. Knowing average home prices in the U.S. can go a long way toward helping you decide how much home you can afford. Home prices are always fluctuating so we are here to help you get a grasp on navigating the housing market.
Average home prices in the U.S.
If you’ve checked in on homes prices over the past year, it should come as no surprise that the average home price in the U.S. has risen. According to NAR, more than 85% of the metro markets they surveyed saw an increase in home prices at the end of 2023. Along with rising home prices comes increased property value, so if you are buying a home now, keep in mind that it may be worth more in the future.
What contributes to increased average home prices? In a nutshell, it’s supply and demand. Increased demand and limited housing supply have worked hand-in-hand to drive home prices up. At the same time, rising interest rates are keeping more homeowners in their homes (and current mortgages) longer so fewer homes reentering the market. This, paired with fewer available new constructions, has led to a limited housing supply and an increased demand for homes.
Average price to build a home in 2024
A popular choice for many homebuyers is to build their own home. According to Forbes, the average cost of building a house is about $329,000 (not including the land). Similar to purchasing an existing home, the price of building a new house can depend on the size, style, and location of where you plan to build.
One of the best parts about building a house is that you can customize your home from day one and a construction loan can help you finance your dream home. Plus, if you choose to build a home, you don’t have to worry about a bidding war keeping you from your dream home because you won’t have to compete with other buyers.
While national trends give an indication to what could be happening in your local market, it’s important to do research in your area. The average home prices vary from state to state based on things like location and demand. A good first step to buying a home in 2024 begins with talking to a mortgage professional. They can help you find a home loan solution to help you buy or build your next home.
Connect with your local PrimeLending loan officer today to get started.
