If you are interested in the history of the real estate market of the United States, you may want to know how the average and medium prices of houses have changed over time. In this blog post, we will use data from various sources to show you the trends and patterns of housing prices in the United States from 1953 to 2023.
Defining terms
He Average price of houses sold It is the total value of all houses sold divided by the number of houses sold over a given period. He Medium price of the houses sold It is the midpoint of housing prices distribution, so that half of the houses are sold for more and half for less than that price. The average price can be influenced by atypical values, such as very expensive or very cheap houses, while the average price is more representative of the typical housing price.
Average housing prices prices per year
According to Fred's data, a database maintained by the Federal Reserve Bank of St. Louis, the Average price of houses sold In the United States in the second quarter of 2023 it was $ 495,100down $ 505,300 In the first quarter and $ 552,600 in the fourth quarter of 2022. The average price reached its maximum point in $ 552,600 In the fourth quarter of 2022, which was the highest level since the series began in 1963. The lowest average price was $ 17,200 in the first quarter of 1963.
Average housing prices per year
He Medium price of the houses sold In the United States in the second quarter of 2023 it was $ 390,500down $ 399,900 In the first quarter and $ 417,800 In the fourth quarter of 2022. The medium price also reached its maximum point in $ 417,800 In the fourth quarter of 2022, which was also the highest level since the series began in 1963. The lowest average price was $ 17,500 in the first quarter of 1963.
Historical trends
The table below shows the historical trends of average and medium prices of houses sold in the United States from 1963 to 2023.


As you can see, both prices have increased significantly over time, but with some fluctuations along the way. The most notable rapidly growth periods were from 1975 to 1980, from 1997 to 2006, and from 2012 to 2022. The most notable decrease periods were from 1980 to 1982, from 2006 to 2012 and from 2022 to 2023.
Factors that affect housing prices
- Supply and demand: When there are more buyers than vendors, or more demand than supply, housing prices tend to increase. When there are more vendors than buyers, or more supply than demand, housing prices tend to fall.
- Population income and growth: When people have more income or when there are more people looking for housing, housing prices tend to increase. When people have less income or when there are fewer people looking for homes, housing prices tend to fall.
- Inflation and interest rates: When inflation is high or when interest rates are high, housing prices tend to fall. When inflation is low or when interest rates are low, housing prices tend to increase.
- Confidence and consumer expectations: When people are optimistic about the economy or when they expect housing prices to increase in the future, houses are more likely to buy. When people are pessimistic about the economy or when they expect housing prices to fall in the future, they are less likely to buy houses.
- Government policies and regulations: When the government provides subsidies or incentives for housing buyers or housing builders, housing prices tend to increase. When the government imposes taxes or restrictions on housing buyers or housing builders, housing prices tend to fall.
- Regional variations: Housing prices may vary widely in different regions or markets depending on local factors such as climate, geography, comfort, infrastructure, culture and preferences.
Historical average prices of existing houses
If we return more in time, we can find data on the medium price of existing houses (not new houses) of another source: DQYDJ, a website that provides calculators and financial tools. According to DQYDJ, the Medium price of existing houses In the United States in September 2021 it was $ 363,300 (in nominal terms) or $ 363,300 (In terms adjusted by inflation). The data date back to January 1953, when the medium price was $ 18,080 (in nominal terms) or $ 207,781 (In terms adjusted by inflation).
Historical tendencies of medium prices of existing houses
The table below shows the historical tendencies of the nominal average prices and adjusted by the inflation of existing homes in the United States from 1953 to 2021.


As you can see, both prices have also increased significantly over time, but with some differences with respect to new housing prices. The nominal price has increased almost 20 times since 1953, while the price adjusted to inflation has increased by approximately 1.7 times. The price adjusted to inflation shows that the real values of the houses have not increased as much as the nominal values of the homes over time. The nominal price also shows more volatility than the price adjusted by inflation, especially during periods of high inflation or deflation.
To summarize, this blog post has shown how the average and medium prices of houses sold and existing houses have changed over time in the United States from 1953 to 2023. You have seen that both prices have increased significantly over time, but with some fluctuations and differences on the road. It has also learned some of the main factors that influence housing prices in the United States. We hope you have found this useful and interesting information. Thanks for reading!
(Tagstotranslate) Average housing prices (T) average housing prices per year