| ||
Friday, Mar. 22, 2004 | ||
Study evaluates cost variances of similar homes in 348 marketsThinking about moving to another city? Coldwell Banker Real Estate Corporation recently released its annual Home Price Comparison Index, the only index of its kind that offers an apples-to-apples comparison of similar homes sold in typical, middle-management transferee neighborhoods in 348 markets across the United States, Puerto Rico and Canada. The snapshot study provides insight into the most expensive and most affordable markets among some of these regions most relocated-to areas. According to the U.S. Census Bureau, 40 million Americans moved between 2002 and 2003. The Coldwell Banker HPCI formula allows consumers to specifically calculate what their own home could be worth in another city and provides preliminary guidance for the affordability of housing from one market to another. The full data report and the automatic HPCI calculation function to determine specific home values can be accessed on www.coldwellbanker.com. Americans are a mobile people, especially during an expanding economy, said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corporation. The Coldwell Banker HPCI serves as a useful tool for those involved in transfers and moves or the curious who want to see what their home would cost in other markets. Home prices vary greatly from market to market, and the HPCI gives some clarity to what homes cost in different parts of the country. The cumulative average sales price of the 322 U.S. markets surveyed in the Coldwell Banker HPCI is $354,372; up 11.38 percent from $318,172 in 2003. More than 60 percent of the markets surveyed have an average home price of less than $300,000. For the second year in a row, the studys most expensive market is La Jolla, Calif. ($1,708,333). The most affordable market is Minot, N.D. ($130,300). The price difference between La Jolla and Minot is $1,578,033 for a similar 2,200-square-foot home. Seven of the countrys 10 most expensive markets are in California. The others are in Connecticut, Massachusetts and Hawaii. Montana and Texas are each home to two of the top 10 most affordable markets. American markets that come closest to the $354,372 HPCI national average sales price are Minneapolis, Minn., and Leesburg/Loudoun County, Va. Alabama narrowly beats Nebraska as having the least price variance within one state. Alabama has a $7,891 difference between Huntsville ($188,466), the most expensive area, and Mobile ($180,575), the most affordable. California has the greatest variance within the same state at $1,359,733 between La Jolla ($1,708,333) and Riverside/Ontario ($348,600). Among the major cities included in the HPCI, the average home price for San Francisco was $1,125,500, while Boston averages $1,053,594 and Chicago averages $763,333. What would your house cost if you were moving from Pittsburgh, Pa., to Providence, R.I.? The Coldwell Banker HPCI standard statistics indexing formula helps provide an answer. Consumers can either use the automated indexing formula by logging onto www.coldwellbanker.com and entering their information, or they may do so manually by looking up index numbers listed on the site and following the instructions: Multiply the market value of your current home by the index number of the destination city where you plan to move. Then, divide that number by the index number of the market where your current home is located. Example: Your home in Pittsburgh (index # 69) has a market value of $243,125 and you are moving to Providence (index #124). $243,125 x 124 = $30,147,500 divided by 69 = $436,920. Therefore, the approximate price you would pay for a similar home in Providence is approximately $440,000. Coldwell Banker Real Estate Corporation conducted its Home Price Comparison Index study by compiling survey data from Coldwell Banker offices throughout the United States, Puerto Rico and Canada. Companies within the Coldwell Banker System submitted data based on the average sales price of sold listings through July 2004, along with averages of prior listings that were priced at current market levels. The criteria for the HPCI subject home is: single-family dwelling, 2,200 square feet (approximately), 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.
| ||
Copyright 2004-Fayette Publishing, Inc. |