"Location. Location. Location." The age-old adage that defines home prices equates to a $2.1 million difference between the nation's most expensive and affordable housing markets according to the 2007 Coldwell Banker® Home Price Comparison Index (HPCI). This annual "apples to apples" comparison of similar middle management homes in 317 U.S. markets finds that Beverly Hills repeats as the most expensive market in the nation. An average 2,200 square foot, 4-bedroom, 2 ˝ bath home in Beverly Hills would cost $2.21 million. Yet, more than 1,400 miles away from the glitz of Rodeo Drive, the Beverly Wilshire Hotel and Spago sits Killeen, Texas, the nation's most affordable studied market where a home with similar characteristics would cost $136,725. Killeen residents rejoice in their fishing, hunting, boating and Friday Night Lights-type high school football passions while embracing their role as a support system for the family and troops based at Fort Hood.
Serving as a "snapshot" study, the Coldwell Banker HPCI evaluates average home values for select 2,200 square foot single-family dwellings with four bedrooms, two and one-half baths, a family room (or equivalent) and a two-car garage1 in 394 markets across the United States, Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker has a presence.
The cumulative average sales price of the homes surveyed in the 317 U.S. markets (including one in Puerto Rico) covered in the Coldwell Banker HPCI is $422,343.
Subject homes in Sarasota averaged $367,500, making Sarasota one of the more affordable markets in the nation. Sarasota compares to the average price of homes in West Hartford, Connecticut ($365,000) and Provo, Utah ($363,975). Sarasota also is similar in price to Cracow, Poland, one of 77 markets studied outside of the U.S., where a similar 2,200 square foot home costs ($368,527).
According to Sue Wolverton, Regional Senior Vice President, Coldwell Banker Residential Real Estate, Sarasota Bay, "Real estate continues to be a prudent long-term investment and this survey offers further evidence of our area's outstanding value as compared to other parts of the country. . Sarasota Bay is growing in popularity both in the U.S. and internationally, and through our global network and unparalleled Internet marketing we are uniquely positioned to attract homebuyers from around the world." Coldwell Banker defines Manatee and Sarasota Counties as its Sarasota Bay region.
Wolverton also indicated that through the comprehensive HPCI section on www.coldwellbanker.com, consumers may calculate what their homes may be worth in other areas in the United States and Canada to gather preliminary intelligence about the affordability of housing from one market to another.
2007 Coldwell Banker® HPCI - Highlights and Top Market Lists
- Beverly Hills, Calif., repeats as the most expensive U.S. market in the study ($2.2 million). Killeen, Texas, regains its 2005 crown as the nation's most affordable market at $136,725. Minot, N.D., the most affordable market in 2006, saw five percent appreciation for the subject home over the last year and drops to second on the most affordable list ($139,033).
- Eight of the top 10 most expensive markets in the U.S. are in California, but Greenwich, Conn., jumped from the eighth most expensive market a year ago to second this year ($2 million). Boston ($1.38 million) is the only other market outside of California to make the top 10 most expensive market list. In all, 16 U.S. markets exceed the $1 million average price for the surveyed home. Joining Greenwich and Boston on that list outside of California are Wellesley, Mass. ($1.19 million) and Ridgewood, N.J. ($1.01 million). Note: Manhattan in New York City was not included in the study because of the lack of comparable single-family homes.
- Six of the most affordable U.S. markets are home to or nearby major military bases:
Killeen, Texas: Fort Hood (Killeen)
Minot, N.D.: Minot Air Force Base (Minot)
Arlington and Fort Worth, Texas: Naval Air Station Joint Reserve Base (Fort Worth)
Wichita, Kansas: McConnell Air Force Base (Wichita)
Grayling, Mich.: Camp Grayling (Grayling)
- While the Northeast Corridor (from Maine to Washington, D.C.,) and California combine for all but five of the most expensive 40 U.S. markets, only two locations from those regions (Augusta, Maine, and Binghamton, N.Y.) appear among the top 40 most affordable markets. Texas, led by Killeen, has eight of the study's 40 most affordable markets.
- The cumulative average sales price of the homes surveyed in the 317 U.S. markets (including one in Puerto Rico) covered in the Coldwell Banker HPCI is $422,343, which is only four-tenths of one percent lower than the 2006 average of $423,950. This change only reflects homes matching HPCI specifications in surveyed markets and is not necessarily reflective of overall market conditions. Although the HPCI focuses on a "snapshot" look at subject homes meeting study criteria and is not intended to show overall market conditions, a comparison of the 2007 and 2006 surveys indicates 148 markets saw a rise in value of the HPCI subject homes, compared to 139 that dipped.
- Markets that rank nearest to the HPCI national average sales price of $422,343 include Modesto, Calif., ($421,667), Minneapolis, Minn., ($415,767) and Frederick, Md., ($415,000)
- Canada mirrors the U.S. with its costliest market being on the West Coast. Vancouver, British Columbia, tops the Canadian list where subject homes average $1,327,875. The most affordable studied market in Canada is Charlottetown, Prince Edward Island ($157,630). The price difference from Vancouver to Charlottetown is $1,170,245.
- The most expensive studied international markets included (prices converted to U.S. dollars as of Sept. 7, 2007): Dublin, Ireland ($2.13 million); Milan, Italy ($1.91 million); Rome, Italy ($1.79 million) and Paris, France ($1.67 million). The most affordable international market tracked is Bogotá, Colombia, at $140,100.
(SEE ATTACHED WORD DOCUMENT FOR COMPLETE SURVEY INFORMATION)
Methodology - 2007 Coldwell Banker Home Price Comparison Index:
Coldwell Banker Real Estate LLC conducts its Home Price Comparison Index study by compiling survey data from Coldwell Banker offices throughout the United States, Puerto Rico, Canada and a sampling of other countries where the Coldwell Banker system has a market presence. Companies within the Coldwell Banker system submit data based on the average sales price of sold listings through July 2007 or a comparative market analysis of homes previously evaluated for the 2006 HPCI. The criteria for the HPCI subject home is: single-family dwelling, 2,200 square feet (approximately)2, four bedrooms, two and one-half baths, family room (or equivalent) and two-car garage in neighborhoods/zip codes within a market that is typical for corporate middle-management transferees.
About Coldwell Banker Residential Real Estate:
Coldwell Banker Residential Real Estate, the leading residential real estate brokerage company in Florida, serves the communities of Broward, Central Florida, Miami-Dade, Palm Beach, Sarasota Bay, Southwest Florida and Tampa Bay. Coldwell Banker Residential Real Estate (FloridaMoves.com) is part of NRT, the nation's largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy's company-owned real estate brokerage offices.
1. The Coldwell Banker® Home Price Comparison Index (HPCI) is not intended and should not be deemed to be a definitive determination of price for any particular real estate. While the HPCI offers insight into housing costs, Coldwell Banker Real Estate LLC recommends that potential homebuyers and sellers conduct additional research and work with a reputable real estate professional on their specific needs.
2. 2,200 square feet was the baseline figure used as size criteria for the HPCI subject homes. However, it is possible that in certain markets the size of the subject homes varied.
3. Currency exchange rates were calculated as of September 7, 2007 on www.oanda.com |
