Coldwell Banker Home Listing Report
Coldwell Banker Releases its Annual Home Listing Survey Report
On Wednesday, June 15, 2011, Coldwell Banker released its annual survey which provides a “snapshot” of the average listing price of four-bedrooms two-bathroom homes that appeared on ColdwellBanker.com in a 6 month period, covering more than 2,300 North American Markets. This year’s report is more extensive than ever before and covers more markets. As a Coldwell Banker agent, I appreciate it that Coldwel Banker provides excellent interactive tools for buyers and sellers making the information easily accessible and useful.
Jim Gillespie, chief executive officer, Coldwell Banker Real Estate LLC said, “We’ve included nearly ten times more markets than ever before, which gives us unmatched real estate insight into thousands of North American cities…. We know that home buying remains a deeply personal lifestyle decision, and we believe that reports like this, along with trusted real estate agents, will help today’s buyers make smart decisions .”
For the full report: Coldwell Banker Home Listing Report.
While visiting this page, take a look at the charts included in the press release or compare the price of your home to other markets by filling out the data at the lower half of the page, check out the infographic for a visual of the ten most affordable and ten most expensive markets or check out the ranking of your community in comparison to other communities in your state with the State Survey List.
Notes from Corvallis Oregon: Wondering
Notes from Corvallis Oregon: Wonder what that was all about?
Statistics, the Media and Real Estate | The problems with housing market data: What does it all really mean?
The problems with housing market data: What does it all really mean?
I recently came across this blog post about housing market data, headlines and statistics. Honestly, I couldn’t agree more to what has been presented in terms of the daily news and how data is manipulated. Average, median and other “statistics” have even less contextual meaning in a “small” community because of the relatively small sample size and nearly no market significance when compared to an individual property.
The “quality” of the data has an impact. Is the reporting accurate? Do the reported sale prices include concessions (things the seller gives up to make the sale happen)? When a market has a limited data sample, the variances and inaccuracies have a larger impact.
Price per square foot has to be one of the worst benchmarks ever. Homes are not produce. They do not sell by the pound. Bananas are produce… Square footage is only one factor in determining price: style, location, fit & finish all affect price (and therefore price per square foot), lot size has an impact.
Another less than meaningful statistic is the “average number of days on the market”. There are too many factors influencing this number including: method of calculation for number of days; does a re-list count as new? does the days-on-market include the escrow period (it does here, and as such it’s a variable controlled by the needs of the clients, certainly not the “market”). There are plenty of other factors influencing how long a specific property is on the market (e.g. new construction listed prior to build out; poor location; unique style; condition of improvements, potential to obtain financing; price point…).
National statistics have very little meaning in a local market. It’s a little like trying to use the average temperature in the U.S. and compare it to a specific location. Not meaningful, especially if you’re in the warmest or coldest location. What’s more important is how robust is a local economy? How is the job market? What are the supply and demand levels?
As stated in the post, these kinds of statistics become more meaningful when compared to similar properties in similar neighborhoods.
The bottom line? The public needs to be very careful before they embrace any “news” with broad based statistical data. It’s interesting, but of limited value in a given market.
If you are interested in what’s happening in the Corvallis, Albany or other areas of the Mid-Willamette Valley, I’d be happy to help you figure out what the statistics mean to you.
Corvallis, Oregon Real Estate Market: Over or Under Valued?
Corvallis, Oregon Housing Market Ranked 9th Most Over Valued – Is that a Fair Assessment?
Recently, I answered a posted question on Trulia.com, which related to a CNNMoney.com post that ranks Corvallis, Oregon as the 9th most overvalued housing market. I’ve been asked about the study in person a few times… here’s what I think.
The study was done by IHS Global Insight and PNC Financial Services. The terminology used are “overvalued” and “undervalued”. The study ranks Corvallis, Oregon as the 10th most “overvalued” market in the study (there were only 399 markets included in the study—one has to wonder about the sample size) .
On one hand I’m completely aghast at the use of the terminology. The definition of market value is “a price at which buyers and sellers are willing to do business” (Webster’s ninth new Collegiate Dictionary). So, by the very definition of market value, how can a market be “over” or “under” valued? The published article is unclear about what the “percent” relates to (percent of what?). Is it the number of homes on the market that are “over/under valued?” Or is it the total number of homes in the community (if so, where did they get that “value” from)? Is it a comparison of number of home on the market or sold in relation to the median house price? None of the data I reviewed tells you what any of it really means. I searched the web in general and the web site for both PNC Financial Services and IHS Global Insights could not locate to the actual study.
With only a surface evaluation at my disposal, I have to say, I am more than a little skeptical about comparisons or rankings of such diverse cities. Seriously, Corvallis is in a list with Honolulu, Hawaii; Bangor Maine; and Bakersfield, California? Not much commonality. Perhaps it would make more sense to compare college towns to college towns (See the Coldwell Banker Home Price Comparison Indexes — there’s one index for College Towns and one for select markets) or towns with similar features and sizes.
The study says it is based on select data: “These judgments are determined by comparing median home prices, local interest rates, population densities and income, plus historical premiums or discounts that areas have exhibited over time.”
If you want to look at the “premiums” that Corvallis has to offer and length of time for the “history”, I have to say, Corvallis is not the same place it was 20 years ago. What are the “historical premiums or discounts”, and who is deciding which of these factors is significant. The term “overvalued” may be relative to who is doing the shopping and what the current “premium” list is…
How long is the history? It does not appear that there is any consideration for supply and demand; and important factor in a community like Corvallis.
Interest rates are very much based on national pricing (at least as long as Fannie Mae and Freddie Mac are still around) not locally set, so the rate climate really has a limited effect.
Corvallis is a very small market. Median home prices fluctuate (and drop) when the upper end of the market is slow and/or when there is limited inventory in the entry level available. For a significant portion of 2009, entry and mid level housing was more active than any other price point because of low interest rates, inventory and tax incentives. When more homes sell in the entry and median levels, the median and/or average is bound to move down. It is simply how the math works (Median is the center point between the highest high and the lowest low, more weight at the lower end, drives the median down.) Based on what I know about individual home sales and the market in which I work, I am not clear on how the median can be a valid statistical point in our market. The sample is simply too small.
The variance in the study between 2006 and 2010 for Corvallis is under 5%–many of the communities on either end of the scale exhibit much wider variances between the 2006 study and the 2010 study. That (almost 5%) is not much of a difference when you are comparing the same figure to other communities. To me it is an indication of a comparatively stable market (relative to the overall economic climate). Other communities, especially those where the bottom dropped out, show wider variations. The communities that are now rated extremely undervalued took big employment hits, have high foreclosure rates, did not control growth and/or a combination of those factors.
Do not get me wrong. I do not think that any community that is immune to the impact of the current economy. However, I do not think that we are in for the fall that one might derive from this report. Jobs will determine that.
It was not until this last housing cycle that homes were considered short-term investments. In the past, most investors were looking at purchasing investment properties on the basis of cash-flow. Appreciation was a bonus. Flipping was done only by the most experienced investors and with appropriate types of financial backing.
The last paragraph of the article is the most significant. “The bottom line, at least for a few years, is that the average buyer should forget about home purchases as investments. The good news is that, long-term, their home values should appreciate.” That sounds more like a return to normal to me.
I’d like to know what you think? Please post your comment or question.
Senate Passes Homebuyer Tax Credit…
Today the US Senate passed the Homebuyer Tax Credit witha 98 to 0 vote. The credit is included in the Unemployment Bill. In order for it to be effective The house must still pass this legislation and then President Obama must sign it into law. It is generally expected to be to The President by the end of the week.
In essence, the bill extends the $8,000 first-time homebuyer credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five or more years.
In Corvallis, Albany and Philomath, this should help create movement in the housing market by assisting the mid-range of the market to move-up into the currently slow upper range; assisting owners of lower cost “entry level” homes to move into the mid-range; thus, freeing up entry level housing for first time homebuyers.
Exciting news for the real estate industry in Oregon; and good news for buyers and sellers in Corvallis, Albany and the surrounding communities in the Willamette Valley of Oregon.
The extension was expected in late October, but has been slow in coming…
“People are going to wonder, how is it, that something that is just common sense and fairness should take so long to make its way through the United States Congress,”‘ Oregon Sen. Ron Wyden said after the vote.
Key Provisions of the Bill Follow (Provided by Teresa “Terry” Estergard, Wells Fargo Bank):
HOMEBUYER TAX CREDIT SUMMARY
S.A. 2712 would:
- Extend through April 30, 2010 the tax credit for first-time homebuyers (up to $8,000 or up to 10 percent of the purchase price of the residence), allowing 60 days to close, provided that the homes are under a binding contract by that date;
- Provide homebuyer tax credit of up to $6,500 to owners who have been in the same principal residence for five consecutive years during the previous eight years;
- Increase the income limitations to $125,000 for individuals and $225,000 for joint filers;
- Phase out the credit for individuals with incomes above $125,000 for individuals and $225,000 for joint filers at the same rate as current law (over the next $20,000);
- Limit the credit to purchases of principal residences equal to or less than $800,000;
- Eliminate the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service; and
Extend the tax credit for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010. - S.A. 2712 would also include anti-fraud language. The measure would not extend the credit to taxpayers under the age of 18 on the date of purchase unless that person is married to a taxpayer above the age of 18. The amendment would also require a properly executed copy of the settlement statement to be attached to the tax return. Moreover, the substitute would expand the restriction on a residence acquired from a family member to include a residence acquired from a spouse’s family member.
- S.A. 2712 would also extend math and clerical error authority to the Internal Revenue Service.
Are You Moving? Here Are Helpful Tips To Find The Neighborhood Of Your Dreams
Choosing the right community is so important, as how you can you really love where you live unless you love the neighborhood? In the frenzy of finding a home and scheduling moving day, many people forget that researching the neighborhood is one of the most important ways to insure happiness at your new destination. Before making your final decision on a home, don’t forget to:
- “Profile” the neighborhood. Ask yourself these questions: Is the quality of the school system important? Is the commute do-able for you? Do you like to be within walking distance to shops and restaurants? Do you like quiet?
- Once you zero in on a neighborhood you like you must research all school information, crime statistics, parks and recreation, neighborhood association fees and tourist attractions. Armed with this information it will be easy for you to make a wise decision.
- Take the time to visit. Don’t downplay your first impression. Take note of the community’s rush hour patterns, it’s social ability factor, it’s streetlights at night. Drive by the schools. Shop in the local grocery store. Try to meet some of your potential neighbors. All of these visual clues can be very revealing.
For more interesting ways to figure out if a neighborhood is right for you click here.
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