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What is the return on new versus previously owned homes?
Buying into a new-home community may seem riskier than purchasing a house in an established neighborhood, but any increase in home value depends upon the same factors: quality of the neighborhood, growth in the local housing market and the state of the overall economy.
One survey by the National Association of REALTORS® shows that resale homes do have an edge over new homes. The trade group's figures show the median price of resale homes increased 7 percent between 1998 and 1999, compared to 2.8 percent for new homes in the same period.
 

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