Location and price: They point to more existing-home sales To get everything you want in your new home -- including a great price -- look to a sale of an existing home, experts say. Sales of newly constructed homes have led the market in recent years, but as builders focused on high-end construction, the price gap between new construction and existing homes has widened. One Florida couple, quoted in The Wall Street Journal, said they spent $273,000 for an existing home, but to get everything they were looking for in a new home, they would have spent $50,000 to $60,000 dollars more. Builders have focused on larger homes because well-heeled buyers were the most reliable market segment, according to Zillow. Entry-level and mid-range buyers stayed away from the home market because of job, mortgage and other economic considerations. It's not surprising that the median price of new homes increased by 24 percent from 2009 to 2013, mainly because builders were building more expensive houses. During the same period, the median resale price posted only a 14.7 percent gain. New construction is good for the overall economy. The National Association of Home Builders estimates that each new single-family home creates three full time jobs for a year. While home construction typically accounts for 5 percent of the U.S. gross domestic product, it has contributed as little as 3.1 percent recently. But today, sales of new homes are slowing to about 65 percent to 70 percent of their annual average since 2000, according to Zillow. More entry- and mid-level buyers are in the market and they are buying existing homes, not new. Price is a main concern, but location also plays a part. Buyers often want to live closer to city centers, while most home construction takes place in the suburbs. Economists for the National Association of Home Builders say the price gap between new and existing homes is starting to narrow, but it will take time for it to get closer. Recently, 31 percent of new homes sold for $200,000 or less, Commerce Department data show. That means builders are picking up a larger share of the less-expensive home market. Builders say it also suggests that the first-time home buyer is finally coming back into the picture, which will push median prices down over time.