It's still expensive to buy here
Yesterday’s post about down payments generated a lot of comments from people frustrated by Massachusetts’s pricey real estate market. With asking prices still high in the Boston area and other parts of the state, it’s harder to come up with an adequate down payment, never mind a 20% down payment.
Unfortunately I don’t have any news to comfort folks today. Instead, I have more fodder for arguments the area needs a reality check on real estate prices.
According to Coldwell Banker’s home price comparison index, released yesterday, the list of the country’s most expensive housing markets is dominated by California. However, Boston cracked the top 10.
To put the list together, Coldwell Banker compares the average sales prices in 315 US markets for homes that are 2,200 square feet, have four bedrooms and 2½ bathrooms.
This year’s results: Eight of the 10 most expensive cities are in California with Greenwich, Conn., coming in second, and Boston ranking 9th with an average price of $1.49 million. The most expensive area was LaJolla, Calif., with an average price of $1.84 million for homes meeting those criteria in 2008.
It’s interesting to note 13 of the 315 regions had average prices over $1 million, including Wellesley, Mass.
The city deemed “most affordable” was Sioux City, Iowa, with an average price of $133,459.
This list is really just a snapshot of the national market, albeit a discouraging one for anyone trying to save for a down payment. But don’t forget it’s based on average prices, which can very easily be skewed by even one really high or low sale price. (So please don’t have nightmares about having to save a six-figure down payment.)
Finally, here’s one sign from that snapshot that prices are sliding, the national average for a house meeting Coldwell’s criteria was $403,738 – a 4.4% decline from $422,343 in 2007.
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