Home Values for the Top 20 Markets

by Steve Crossland, REALTOR in Austin TX on August 2, 2007 · 8 comments

REALTOR® Magazine Online reports the following stats for real estate values in their “top 20″ cities.

The annual growth rate in prices of existing single family homes across the United States continued to decline for the 18th consecutive month in May, according to the Standard & Poor’s/Case-Shiller Home Price Index. Overall, the top 20 cities in the index declined 2.8 percent year-over-year, although five of the cities showed increases. Austin is one of the exception to that trend.

Here are the top 20 metropolitan areas and the percent of change in their real estate values over the last year. I’ve added Austin to the bottom:

Atlanta: 1.7 percent
Boston: -4.3 percent
Charlotte: 7 percent
Chicago: -0.6 percent
Cleveland: -2.8 percent
Dallas: 1.8 percent
Denver: -1.4 percent
Detroit: -11.1 percent
Las Vegas: -4.1 percent
Los Angeles: -3.3 percent
Miami: -3.3 percent
Minneapolis: -3.5 percent
New York: -2.3 percent
Phoenix: -5.5 percent
Portland: 5.7 percent
San Diego: -7 percent
San Francisco: -3.4 percent
Seattle: 9.1 percent
Tampa: -6.7 percent
Washington, D.C.: -6.3 percent
Austin, TX: 6.1%

We are starting to see increases in inventory again, but prices remain strong in Austin. See this blog article for more Austin sales stats.

{ 8 comments… read them below or add one }

1 arz August 3, 2007 at 1:33 am

why is Seattle growing so fast?

2 Scott August 3, 2007 at 11:41 am

How valid do you think a site like this is… http://www.housingtracker.net/ ? Looking at this, it seems like austin would be in the top 2 or 3.

3 Steve Crossland August 3, 2007 at 2:28 pm

Hi Scott,

Austin is number 3 because the list is alphabetical.

At the bottom of the page on the site it says:

“The numbers provided here are asking prices derived from Realtor MLS listings. The data is an aggregate representation of large markets and should not be used for valuation of individual homes. While every attempt is made to deliver accurate data, the information on this website is provided as-is. No warranty or guarantee of accuracy is offered or implied. This work is licensed under a Creative Commons Attribution-Share Alike 2.5 License.”

It’s an interesting site and I’ve checked it out before. Asking prices are not an accurate reflection of sales activity though, but the numbers are interesting to look at nonetheless.
Steve

4 dave August 3, 2007 at 11:28 pm

In answer to ARZ per seattle’s rapid appreciation…simply, the tech economy has picked up big again, and aerospace
is humming(boeing)with international orders for jets..its still more affordable then silicon valley, and just about as
tech heavy, with possibly even more natural beauty than the Bay area, so it attracts techs from all over.
The pay scale is almost on the top of the charts, with only NYC and the BAY AREA with a higher median salary level.
Add it up, and you have a boom, believe it or not, even hotter than Austin by 33%(9% growth in RE). If you consider
that the average house is valued at 370K as opposed to Austin on the verge of 200K, its even more impressive,

5 Matt Risinger August 9, 2007 at 7:43 am

I agree with Dave on his Seattle comments. My best friend lives there and works for Boeing. He tells me they’ve added thousands of jobs since he was hired two years ago. Their new jet has really pumped the economy. Plus, after living in Portland, OR for a few years I can attest to how cool Seattle is to visit.
On another note, I love seeing that Austin is humming along. We’re the little engine that could! -Matt Risinger

6 Mare August 11, 2007 at 12:12 am

Playing a little devil’s advocate here, I found an interesting blog about Seattle real estate:

http://seattlebubble.com/blog/

There’s a good entry titled ‘Gangbuster Job Growth, Lackluster Incomes’ worth checking out.

7 Steve Crossland August 11, 2007 at 3:31 pm

> Playing a little devil’s advocate here …

Always a good thing, and appreciated. The article you are referring to is:
http://seattlebubble.com/blog/2007/08/06/gangbuster-job-growth-lackluster-incomes/

Basically, it’s saying the job growth is happening in Seattle, but not high-paying jobs. The Seattle real estate market is slowing down while job growth is strong, so I believe your point is that job growth doesn’t always drive a real estate market.

I think the real estate bubble and the bad lending practices change the equation for a lot of cities. Austin sat out the real estate bubble though, so I think the old fashioned rules still apply here, but I agree that “job growth” may be too simplistic a term to use. A better statement might be that “inmigration of workers taking good paying jobs helps drive a real estate market, provided that market isn’t suffering from already over-inflated prices and high levels of loan defaults”.

Steve

8 Mare August 11, 2007 at 4:33 pm

>>I believe your point is that job growth doesn’t always drive a real estate market.

That was, IMHO, the biggest point the blogger was making there – actually, I think that’s the point of most of the blogger’s posts. Supply and demand (and this is just what I’m deriving from the article) aren’t the major driving forces of that market (as their local media tends to portray), but rather an unhealthy perception of how wonderful it is. Seattle has some great things going for it: a) The economy there is going well; b) Seattle can’t sprawl like Austin – it’s surrounded by mountains and ocean; c) The tech sector – and the high salaries that go with it – are an integral part of their economic base; d) The subprime fallout hasn’t really hit – yet. While all of that is good, I have to agree with the blogger. They can’t sustain that appreciation forever, and that market won’t level out and trough like a normal cycle should. I see Austin as a miniature of Seattle – although we’re seeing appreciation for the right reasons, I worry that it will get out of hand.

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