The Florida Keys, September 26, 2007–   “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 ½ 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.

 

The cumulative average sales price of the homes surveyed in 13 different Monroe County locations from Key Largo to Key West by Coldwell Banker Schmitt Real Estate Co. is $1,240,623, making The Keys among the most expensive markets in the nation.

 

In the Upper Keys, subject homes in Key Largo average $1,342,400, while those in Islamorada average $1,269,045. Locations in the Upper Keys compare to the average price of homes in Boston, MA ($1,381,250) and Palos Verde, CA ($1,325,000). The Upper Keys is also is similar in price to Florence, Italy, one of 77 markets studied outside of the U.S., where a similar 2,200 square foot home costs $1,352,167.

 

In the Middle Keys, subject homes in Duck Key average $1,415,000, while those in Key Colony Beach average $1,320,000, and in Marathon and Coco Plum, $1,180,357.  Locations in the Middle Keys compare to the average price of homes in San Francisco, CA ($1,451,250) and San Jose, CA ($1,145,000). The Middle Keys is also is similar in price to Vancouver, British Columbia in Canada ($1,327,875) and Madrid, Spain, among the 77 markets studied outside of the U.S., where a similar 2,200 square foot home costs $1,135,351.

 

Subject homes in The Lower Keys average $1,209,309.  Locations in the Lower Keys compare to the average price of homes in Palos Verde, CA ($1,325,000) and Wellesley, MA ($1,193,750). The Lower Keys is also is similar in price to Madrid, Spain, one of 77 markets studied outside of the U.S., where a similar 2,200 square foot home costs $1,135,351.

 

Subject waterfront homes in Key West average $1,250,000, while non-waterfront homes average $929,818 making Key West the most expensive market in Florida measured in the national survey. Subject homes in Key Haven average $904, 372. Locations in Key West compare to the average price of homes in Palos Verde, CA ($1,325,000) and Bethesda, MD ($950,000). Key West is also is similar in price to Dubai, United Arab Emirates ($1,127,459) and, Seville, Spain among the 77 markets studied outside of the U.S., where a similar 2,200 square foot home costs $906,009.

 

By contrast, Port Charlotte was Coldwell Banker’s HPCI’s most affordable market in Florida, with an average price of $239,100.

 

“The real estate market in The Keys has not changed significantly since Coldwell Banker released the 2006 HPCI,” says Brian Schmitt, broker/owner, Coldwell Banker Schmitt Real Estate Co. “The downturn actually started in 2004 in Key West,  Florida’s most expensive market as determined by the HPCI, and which has generally registered the highest average price increases in The Keys. Sales declined as prices escalated and many buyers were priced out of the market. This trend worked its way up The Keys until two back-to-back years of storms ending with Wilma struck the final blow. Since then, the market has been slowly recovering. Nevertheless, The Florida Keys continues to be one of the most unique places to live in the U.S., and one with unrealized value from many perspectives. There is little opportunity to create more product, so what we have today in number of units is essentially all there ever will be, a finite resource.  We have only started to witness the exodus of the affluent Baby Boomers from the north and I believe many more of them will want to come to The Keys over the next 10 years than we’ll be able to accommodate.”

 

Schmitt also indicates that through the comprehensive HPCI section on www.coldwellbanker.com, consumers can 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.

 

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.

 

 

 

 

 

 

 

 

 

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.