Commercial PropertyColdwell Banker Tracks Most, Least Expensive Housing
Coldwell Banker Real Estate Corporation"s latest price comparison shows vast differences between the same size home in the most expensive and most affordable markets.
It"s no secret that homes have posted record gains, but some markets are doing a lot better than others.
For similar 2,200 square-foot, four-bedroom, two-and-a-half-bath, two-car garage homes with a family room in La Jolla, California and Killeen, Texas, there"s a difference of about $1.7 million in value.
The annual Coldwell Banker Home Price Comparison Index (HPCI), which is an "apples-to-apples" comparison of homes sold in typical, middle-management neighborhoods, found that the seaside community of La Jolla topped the charts at $1,875,000, while Killeen was the most affordable area at $131,328.
Up 13.3 percent from $354,372 from the same period last year, the cumulative average sales price of the 319 U.S. markets surveyed was $401,767.
Nine of the country"s top 10 most expensive markets are in California, with other high-priced areas including Greenwich, Ct. (#10,) Boston, Ms., Rye, N.Y., and Chevy Chase, Md. Conspicuously absent was Manhattan, which was not included due to the paucity of single-family dwellings.
Among the top 10 most affordable markets, three are in Texas (Killeen, Arlington, Fort Worth) and two are in West Virginia (Beckley, Parkersburg).
"The HPCI reinforces what we have been saying all year -- the real estate market remains strong," says Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corporation. "Millions of consumers are on the move, trading up and seeking new opportunities. In fact, the National Association of REALTORS predicts that more than seven million homes will be sold in 2005, making this the top year on record. With the rapid price appreciation we have seen in housing over recent years, the HPCI has become an even more valuable tool. By helping Americans gauge the value of their home in new markets, it takes some of the guesswork out of the stress of moving."
Using an enhanced HPCI section on Coldwellbanker.com, consumers can calculate what their homes might be worth in other areas and gather preliminary guidance about the affordability of housing from one market to another.
Interesting side notes are that of the markets surveyed, 52 percent have an average home price of less than $300,000.
Markets that come closest to the national average sales price of $401,767 are Minneapolis, Minn. ($397,133) and Edina, Minn. ($404,150).
California has the greatest variance within the same state at $1,485,542 between La Jolla at the high end ($1,875,000) and Fresno at the low end ($389,458). The study also found that Fresno, the least expensive market in California, was a mere 3 percent below the national average.
Among the major cities included in the HPCI, the average home price for San Francisco was $1,300,000, with Boston averaging $1,260,000 and Chicago $815,000.
As a result of the devastation in the Gulf Coast from Hurricane Katrina, statistics from Alabama, Mississippi and Louisiana were not included in this year"s study.