Summary Box: New homes a bad deal in weak markets

AP News
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Posted: Mar 22, 2011 5:23 PM
Summary Box: New homes a bad deal in weak markets

BIG DIFFERENCE IN PRICE: A new home, the dream of many would-be buyers, makes less and less financial sense in many places. It costs 48 percent more than a home being resold, based on the median price for each: $230,600 for a new home; $156,100 for a previously occupied home.

COMPETING WITH BARGAINS: A wave of foreclosures is forcing down prices for previously occupied homes. By contrast, new homes have become more expensive.

DRAG ON ECONOMY: Each home built creates an average of three jobs and $90,000 in taxes, according to the National Association of Home Builders.