New FHA-backed home sales decreased in the third quarter to 19,000 and a market share of 16%, according to the Census Bureau’s Quarterly Sales by Price and Financing and NAHB calculations.
The figure is still higher than the approximate share of 12% from a year ago.
As the housing market has recovered, conventional financing has expanded. The market share of new home sales with conventional financing was 62% in 2011 and came in at approximately 71% for the third quarter of 2015, according to the NAHB.
These sources of financing serve distinct market segments, which is revealed in part by the median new home price associated with each. For the second quarter, the median new home price due to FHA financing was $217,500. The median price for VA-backed loans was $242,200.
Conventional mortgage financing had a median price of $315,500 and for cash purchases for the first quarter, the median price was $330,300.