by Alyssa Oursler | November 25, 2013 8:28 am
Housing stocks like Toll Brothers (TOL) and Lennar (LEN) may have cooled off so far this year, but home prices are still marching steadily higher.
The third-quarter report on home prices by the National Association of Realtors showed that national median existing single-family home price was over $207,000 in the third quarter. That’s a 13% in house prices year-over-year and the strongest annual growth in nearly eight years.
Of course, it’ll cost you more if you’re looking for a brand-new house for sale. The median of new home prices was $265,000 in the second quarter — approximately $6,000 more than it was in Q1 and $16,000 more than it was the same time a year ago.
And it’ll cost you various amounts depending on which specific housing market you have your eye on. Home prices in the rural Midwest are vastly different from house prices in a major metropolitan area, obviously.
We decided to zoom in on this variance to see precisely what these rising home prices mean for folks across the country. Take a look at what $250,000 (a pretty standard home price) gets you in various housing markets.
Home prices in Charlotte, N.C. are pretty reasonable compared to house prices in some bigger cities. For less than $245,000, you can snag a single-family home that was just renovated and has an addition.
The median of home prices in the city comes to $100 per square foot — far below the median of all house prices, which sits at $180 per square foot.
This specific house for sale is located uptown as well — right across the street from Panthers Stadium and walking distance to the new BB&T Baseball field. It also has easy access to Southend restaurants, bars and clubs, according to its Zillow (Z) posting.
Plus, home prices get even more reasonable if you head into the suburbs. Homebuyers can get more than double the square footage in some cases — for the same price.
For a similar range of house prices, homebuyers can’t snag a house quite as close to the downtown area of the Golden State’s capital. But you can get a decent house in the suburbs of Sacramento for just over the nation’s median of home prices.
This house for sale, going for $253,000, sure isn’t huge. But it’s not a bad house price when you consider the fact that it has hardwood floors, cozy fireplace in the living room, central heat and air, a covered patio and a nice-sized backyard.
It’s also not bad considering that Sacramento is generally more expensive when it comes to home prices. The median for the housing market is $152 per square feet. That was a 25% year-over-year increase in November, and above the overall median for home prices.
Location, location, location is what drives our chosen example for Austin home prices. House prices in Austin are above-average, with the median of the city’s home prices coming to $180 per square foot.
While homebuyers can get a single-family home in the Austin suburbs for a standard price, another option is to buy a condo right in the heart of the city. This example illustrates the high home prices, though: For nearly $250,000, you get just one bedroom and one bathroom in the building pictured.
Then again, you also can walk to great restaurants and shopping and have reserved parking in secured garage along with access to a pool, according to Zillow.
Head to the Midwest, and home prices fall significantly. The median of house prices in Cleveland, for example, was a mere $48 per square foot as of November.
Don’t believe those are cheap home prices? Well, it was the lowest median of home prices out of all 38 markets Movoto tracks.
As a result, you can snag a brand new townhouse right near a major highway with three floors, three bedrooms and 2.5 baths, a deck, a two-car garage for less than $250,000 in Cleveland.
At the time of publication, Oursler had no positions in the securities mentioned.
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