When you look at the price of a new house you are really seeing the price of a bare bones residence. After moving in many people spend $20,000 to $80,000+ on improvements to their house. Projects such as new floors, crown moulding, driveway stones or designs, glassed in lanais, attic stairs, extra landscaping, etc.. all add up to thousands of dollars. So when people go to sell their house they often add all these improvements to the price they paid for it originally. So if you paid $290,000 in 2013 for your stretched, Gardenia designer home and then added $60,000 in major improvements you would price your home at $350,000. After paying a realtors commission you actually would lose money on the house, but this market is not strong enough to recoup all your monies, in my opinion. The prices I see do not reflect much upside over the last year and a half. You can still find a new, bare bones Gardenia in the $290,000 price range. The used market actually seems soft and home owners are not getting the price they think is right (cost plus improvements) I know people who have taken their year and a half old homes off the market because no one will give them an offer they want.
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