SOURCE: Coldwell Banker

Coldwell Banker

September 23, 2009 05:00 ET

Coldwell Banker Real Estate Releases Annual Home Price Comparison Index for United States and Select International Markets

$2 Million Difference Between Four-Bedroom Homes in Most Expensive Market of La Jolla, Calif., and Most Affordable Market, Grayling, Mich.

Singapore Tops International List as Most Expensive Foreign Market; Salinas, Ecuador Most Affordable

PARSIPPANY, NJ--(Marketwire - September 23, 2009) - The 2009 Coldwell Banker® Home Price Comparison Index (HPCI) released today found a price gap of more than $2 million between the most expensive and most affordable U.S. housing markets. In the annual comparison of similar 2,200-square-foot homes in 310 U.S. housing markets, La Jolla, Calif. led the list as the most expensive real estate market in the country with an average home price of $2,125,000. Grayling, Mich., also known as the "canoe capital of the world," ranked as the most affordable market in America, where a similarly sized home costs $112,675.

La Jolla was joined on the most expensive list by 13 other California markets while Grayling was one of 20 Midwest communities on the most affordable list. Internationally, Singapore was the most expensive market for the same type of home, $1.9 million U.S. dollars, compared with Salinas, Ecuador, which at $69,375 U.S. dollars was the most affordable studied international market.

Differing from most housing reports that compare median prices, the annual Coldwell Banker HPCI provides an apples-to-apples comparison of similar 2,200-square-foot, four-bedroom, two-and-a-half bath homes in the United States, Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker Real Estate has a presence.

"While price differentials are interesting to compare, I am most intrigued with the affordability levels now seen across much of the nation," says Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. "The four-bedroom, two-and-a-half bath home is one we deem 'aspirational' and usually purchased by move-up buyers experiencing lifestyle changes. Thirty percent of the markets show this type of home to be below $200,000, illustrating the opportunity to take advantage of price declines, interest rate levels and increased selection of homes. Encouraging these move-up buyers back into the market is a crucial next step toward helping to rejuvenate the housing industry and the overall U.S. economy."

A "Snapshot" of U.S. Home Affordability

Offering a "snapshot" of affordability across the United States, the Coldwell Banker HPCI evaluates average home values for select 2,200-square-foot, single-family homes with four bedrooms, and two-and-one-half baths.(1) The cumulative average sales price of the four-bedroom homes surveyed in the 310 U.S. markets (including one in Puerto Rico) covered in the Coldwell Banker HPCI is $363,460.

Through the comprehensive HPCI section on the Coldwell Banker web site (http://hpci.coldwellbanker.com), prospective homebuyers and sellers can calculate what similar homes may be worth in other areas and gather preliminary intelligence about the affordability of housing from one market to another.

2009 Coldwell Banker HPCI - Highlights and Top Market Lists

--  Affordable and Attractive: In addition to Grayling, Mich., the
    following are interesting tidbits about the other nine most affordable
    U.S. markets:
    --  Akron, Ohio ($121,885), won the All-American City award three times
        and is birthplace to the ice cream cone
    --  Fayetteville, N.C. ($130,875), a historic city known for its strong
        military ties
    --  Canton, Ohio ($131,867), birthplace of American professional
        football and home to the NFL Pro Football Hall of Fame
    --  Detroit, Michigan ($132,000), America's automotive manufacturing
        and Motown music hub
    --  Arlington, Texas ($138,775), home to the Dallas Cowboys' new
        stadium which will host the 2011 Super Bowl XLV, and the Texas
        Rangers' Ballpark
    --  Macon, Ga. ($139,007), hometown to many legendary soul and blues
        acts like Otis Redding, and home of the Georgia Music Hall of Fame
    --  Eau Claire, Wis. ($141,270), which has been named one of the 100
        Best Communities for Young People by America's Promise in the past
    --  Port Charlotte, Fla. ($142,750), which is minutes away from the
        Gulf of Mexico and setting to some of the country's best sunset
        views
    --  Wichita, Kans. ($144,625), home to more than 30 museums and a
        haven for art-lovers, theatre-goers and golfers alike

--  Low Cost to Homeownership: In total, there are 84 U.S. markets in
    which the sample home price averages under $200,000.  The monthly mortgage
    cost for homes in this price range could average less than $600, and down
    payments could amount to less than $4,000.
    
--  Luxury Living: La Jolla, Calif. heads the list as the most expensive
    real estate market in the country ($2,125,000), beating out its California
    neighbor Beverly Hills, where the average home costs $1,981,750.
    Greenwich, Conn., whose average price of $1,519,250 places it as the most
    expensive market on the East coast, is followed by Boston at No. 7 overall.
    In total, 11 U.S. markets exceeded the $1 million average price for the
    surveyed home.  Note: Manhattan in New York City was not included in the
    study because of the lack of comparable single-family homes.
    
--  On Average: The overall national average price of homes in the 2009
    Coldwell Banker HPCI is $363,401.
    
--  Canadian Prices Reach Record Levels: Canada's brief market downturn is
    over, with record prices now seen throughout the resurgent market.
    Vancouver, BC leads the hot-again west coast at $1.17 million U.S. dollars
    for the studied home, nearly double that of nearby Burnaby, BC at $611,243.
    Boomtown Fort McMurray at $593,340 surpasses Calgary as Alberta's most
    expensive market. Canada's largest city, Toronto, Ontario comes in at
    $766,643, while Charlottetown, PEI remains the country's most affordable
    market, priced at $147,560 U.S. dollars.
    
--  Most Expensive Internationally: The most expensive market outside the
    United States is Singapore, where an HPCI subject home averages $1.9
    million U.S. dollars, 10 percent lower than La Jolla. Coldwell Banker Real
    Estate compared a total of 57 markets in 29 countries outside of the United
    States, with those international home prices averaging $487,844 in U.S.
    dollars.
    

TABLE 1

The top 10 most expensive and most affordable surveyed U.S. markets overall in 2009 are:

                           2009 Avg.                       2009 Avg.
Rank Most Expensive       Sales Price  Most Affordable    Sales Price
---------------------------------------------------------------------
 1   La Jolla, Calif.      $2,125,000  Grayling, Mich.      $112,675
 2   Beverly Hills, Calif. $1,981,750  Akron, Ohio          $121,885
 3   Greenwich, Conn.      $1,519,250  Fayetteville, N.C.   $130,875
 4   Palo Alto, Calif.     $1,489,726  Canton, Ohio         $131,867
 5   Santa Monica, Calif.  $1,460,912  Detroit, Mich.       $132,000
 6   San Francisco, Calif. $1,363,250  Arlington, Texas     $138,775
 7   Boston, Mass.         $1,337,578  Macon, Ga.           $139,007
 8   Newport Beach, Calif. $1,315,505  Eau Claire, Wis.     $141,270
 9   Palos Verdes, Calif.  $1,237,041  Port Charlotte, Fla. $142,750
10   San Mateo, Calif.     $1,090,000  Wichita, Kans.       $144,625

TABLE 2

The most expensive and most affordable surveyed U.S. markets within each state in 2009 are:


                             2009 Avg.                 2009 Avg.
                   Most        Sales        Most        Sales
 State          Expensive      Price     Affordable     Price    Variance
--------------------------------------------------------------------------
 ALASKA             Juneau $   375,667     Anchorage $ 339,311 $    36,356
 ALABAMA        Huntsville $   267,314        Mobile $ 183,696 $    83,618
 ARIZONA         Flagstaff $   385,057       Phoenix $ 199,111 $   213,373
 ARKANSAS     Fayetteville $   216,125   Little Rock $ 171,684 $    44,441
 CALIFORNIA       La Jolla $ 2,125,000     Lancaster $ 165,205 $ 1,959,795
                                            Colorado
 COLORADO          Boulder $   622,000       Springs $ 200,002 $   421,998
 CONNECTICUT     Greenwich $ 1,519,250 West Hartford $ 354,375 $ 1,164,875
 DELAWARE              Wilmington*                   $ 376,250
                                                Port
 FLORIDA          Key West $   815,750     Charlotte $ 142,750 $   673,000
 GEORGIA           Atlanta $   287,250         Macon $ 139,007 $   148,243
 HAWAII           Honolulu $   712,500    Kihei Maui $ 540,044 $   172,456
 IDAHO               Boise $   215,432 Coeur d'Alene $ 204,518 $    10,914
 ILLINOIS          Chicago $   768,333        Joliet $ 176,536 $   591,797
 INDIANA           Munster $   336,000        Muncie $ 144,996 $   191,004
 IOWA           Des Moines $   221,625    Sioux City $ 150,060 $    71,565
 KANSAS      Overland Park $   230,317       Wichita $ 144,625 $    85,692
 KENTUCKY         Florence $   212,720     Lexington $ 188,017 $    24,703
 LOUISIANA     New Orleans $   255,066     Lafayette $ 194,939 $    60,127
 MAINE            Portland $   310,500      Lewiston $ 212,250 $    98,250
 MARYLAND         Bethesda $   759,664    Hagerstown $ 237,946 $   521,718
 MASSACHUSETTS      Boston $ 1,337,578     Worcester $ 242,769 $ 1,094,809
 MICHIGAN   Mount Pleasant $   195,014      Grayling $ 112,675 $    82,339
 MINNESOTA           Edina $   392,647     Rochester $ 191,982 $   200,665
                                           Gulfport/
 MISSISSIPPI       Jackson $   238,000        Biloxi $ 186,500 $    51,500
 MISSOURI        St. Louis $   228,852   Springfield $ 156,225 $    72,627
 MONTANA           Bozeman $   297,488   Great Falls $ 151,100 $   146,388
 NEBRASKA          Kearney $   212,100       Norfolk $ 187,350 $    24,750
 NEVADA               Reno $   272,309     Las Vegas $ 213,120 $    59,189
 NEW HAMPSHIRE     Hanover $   555,222        Nashua $ 281,250 $   273,972
                                               Haddon
 NEW JERSEY      Ridgewood $   801,250       Heights $ 238,448 $   562,802
 NEW MEXICO       Santa Fe $   362,602   Albuquerque $ 215,059 $   147,543
 NEW YORK           Queens $   793,500      Syracuse $ 171,711 $   621,789
 NORTH
  CAROLINA   Winston-Salem $   279,241  Fayetteville $ 113,701 $   165,540
 NORTH DAKOTA        Fargo $   224,426         Minot $ 157,167 $    67,259
 OHIO             Columbus $   307,250         Akron $ 121,885 $   185,365
 OKLAHOMA    Oklahoma City $   164,250         Tulsa $ 154,800 $     9,450
 OREGON              Salem $   335,840       Medford $ 276,367 $    59,473
 PENNSYLVANIA Philadelphia $   472,396          Erie $ 206,500 $   266,193
 RHODE
  ISLAND              Providence*                    $ 290,217
 SOUTH
  CAROLINA      Charleston $   338,726  Myrtle Beach $ 188,123 $   150,123
 TENNESSEE       Nashville $   235,336   Chattanooga $ 161,975 $    73,661
 TEXAS              Dallas $   332,375     Arlington $ 138,775 $   193,600
 UTAH       Salt Lake City $   291,152         Provo $ 213,000 $    78,152
 VERMONT        Burlington $   352,000       Rutland $ 237,600 $   114,400
 VIRGINIA           Vienna $   645,946    Winchester $ 209,750 $   436,196
 WASHINGTON       Bellevue $   781,825    Tri-Cities $ 224,475 $   557,350
 WEST
  VIRGINIA      Charleston $   203,528   Parkersburg $ 155,000 $    48,528
 WISCONSIN         Madison $   298,000    Eau Claire $ 141,270 $   156,730

The 2009 average price in the District of Columbia:

DISTRICT OF COLUMBIA                      $642,962 *

The 2009 average price in the Commonwealth of Puerto Rico:

PUERTO RICO                               $311,750 *

*Only one market included in the study.

TABLE 3

The most expensive and most affordable markets (in U.S. dollars(2)) within selected provinces/territories in Canada are:

                                   2009 Avg.              2009 Avg.
Province/           Most            Sales         Most     Sales
 Territory       Expensive          Price      Affordable  Price   Variance
---------------------------------------------------------------------------
 ALBERTA         Fort McMurray      $593,340    Edmonton  $401,993 $191,347
 BRITISH
  COLUMBIA       Vancouver        $1,174,241    Burnaby   $611,243 $562,998
 MANITOBA                         --  *Winnipeg $363,042  --
 NEW BRUNSWICK                    --  *Moncton $256,843   --
 NEWFOUNDLAND                     -- *St. John's $324,338 --
 NOVA SCOTIA                      --  *Halifax  $257,891  --
 ONTARIO         Toronto            $766,643    Brantford $222,968 $543,675
 PRINCE EDWARD
  ISLAND                        -- *Charlottetown $147,560 --
 QUEBEC                         --    *Montreal $436,403   --
 SASKATCHEWAN                   --   *Saskatoon $355,237   --
 YUKON                          --  *Whitehorse $341,775   --

* Only one market included in the study.

TABLE 4

All surveyed international markets 2009:

                                             2009 Avg.
                                             Sales Price
Country                      Market          in U.S. $
--------------------------------------------------------
ARUBA                                 Aruba  $   314,000
AUSTRALIA                          Brisbane  $   217,071
BAHAMAS                              Nassau  $   458,906
BELIZE                            San Pedro  $   244,300
BERMUDA                            Hamilton  $ 1,348,813
CAYMAN ISLANDS               Cayman Islands  $   526,250
CHINA                              Shanghai  $ 1,386,750
                                  Chongqing  $   340,776
COLOMBIA                            Pereira  $   151,884
                                     Bogotá  $   182,926
                                  Cartagena  $   454,102
COSTA RICA                           Escazu  $   293,750
                                    Heredia  $   265,000
                                 Jaco Beach  $   385,500
                                   San Jose  $   269,500
ECUADOR                           Guayaquil  $   101,250
                                Samborondon  $   154,250
                                    Salinas  $    69,375
EGYPT                                 Cairo  $   273,393
                                6th October  $   859,625
GUATEMALA                    Guatemala City  $   207,175
HONDURAS                             Roatan  $   299,500
                                  San Pedro  $   220,000
                                Tegucigalpa  $   228,166
INDONESIA                           Bandung  $   112,367
                              South Jakarta  $   494,252
                                  Tangerang  $   146,551
IRELAND                                Cork  $   534,360
                                     Dublin  $ 1,127,843
                                     Galway  $   746,874
ITALY                              Florence  $ 1,612,224
                                       Rome  $ 1,261,740
                                      Milan  $ 1,636,758
LEBANON                              Beirut  $   512,000
MEXICO                          Mexico City  $   207,020
                                  Monterrey  $   188,435
NICARAGUA                           Granada  $   239,750
                                    Managua  $   221,000
PANAMA                          Panama City  $   239,750
ROMANIA                            Ploiesti  $   402,778
                                     Brasov  $   300,764
                                  Bucuresti  $ 1,371,528
SINGAPORE                         Singapore  $ 1,898,500
ST. CROIX                     Christiansted  $   602,500
TURKEY                             Istanbul  $   669,000
                                     Ankara  $   351,000
                                  Gaziantep  $   173,500
                                      Izmir  $   315,000
TURKS AND CAICOS             Providenciales  $   872,225
UNITED ARAB EMIRATES                  Dubai  $ 1,077,703
VENEZUELA                           Caracas  $   165,615
                                  Maracaibo  $   118,461
                                   Porlamar  $   151,653
VIETNAM              Ho Chi Min City Dist 1  $   341,099
                                      Hanoi  $   166,470
                                     DaNang  $   172,900

Methodology - 2009 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 comparable listings through July 2009, a comparative market analysis of homes previously evaluated for the 2008 HPCI. 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.

About Coldwell Banker Real Estate

Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine's prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

(1) 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.

(2) The Canadian dollar to U.S. dollar conversion rate was $.93. The date of conversion was 9/15, and http://www.bank-banque-canada.ca was used to convert the figures.

Contact Information

  • For Greater National Perspective on Real Estate Trends & Home Values and/or
    to Obtain Local Market Interviews:

    David Siroty
    Coldwell Banker Real Estate LLC
    973.407.7199
    Email Contact

    Heather Roberts
    Coldwell Banker Real Estate LLC
    973.407.5590
    Email Contact

    Kathleen Reynolds
    CooperKatz & Co.
    917.595.3031
    Email Contact