The average new home is 2,150 sf
In a Southern suburb, a home’s value increases by around $43,000 by having a third full bathroom in a single family home, according to the National Association of Home Builders’ updated home price estimator and economic model that compares the four regions in America to enable home buyers, home builders, home owners and developers to compare the impact of physical features on a home’s price.
The results of the national economic model are interesting – the “standard” new single family home has 2,150 square feet, has three bedrooms, two and a half bathrooms, garage, fireplace, central air, separate dining and three miscellaneous rooms in a neighborhood where groceries are within 15 minutes from the home.
New home prices are typically higher in the Northeast and West than the Southeast and Southern regions and the lowest prices tend to be outside of a metro area, but according to the NAHB, “In general, the estimator finds that suburbs show higher prices than their companion central cities, which include the areas inside the city limits and not just a central business district or downtown area.”
How features impact a home’s price
Take for example a standard new home in a suburb in the South- it costs on average $203,874. Put that home on the waterfront and the price jumps by $90,000. Put the home near public transportation and you add another $26,000. Add 500sf of living space which adds an average $13,000 to the home price, but adding another bedroom or miscellaneous room adds less than $10,000 in value.
What can hurt a home’s price? Take out that fireplace of that Southern suburban home and you’re looking at reducing a home’s value by an average (and shocking) $24,000. Foreclosures are having an impact on home values without a doubt- an abandoned building within half a block knocks $28,000 off of a home’s value. Without shopping nearby, metal bars on windows, poor roads or bad smells can hurt a homes value by more than $6,000.
Below is an easy to read summary of the information above (remember, all of this serves as an example of a Southern suburb for illustrative purposes). Visit the NAHB’s home price estimator and economic model to learn more about feature values in your market.
- The average new single family home has 2,150 square feet and is a 3/2.5.
- The average new home has a garage, fireplace, separate dining and three miscellaneous rooms.
- The average new home is in a neighborhood where groceries are within 15 minutes.
- A full third bathroom adds $43,00 to a home’s value.
- The average new home in a Southern suburb is $203,874.
- Being waterfront adds $90,000 to a home’s value.
- Being near public transportation adds $26,000 to a home’s value.
- Adding 500sf of living space adds $13,000.
- BUT, if that extra space is a bedroom or miscellaneous room, it adds under $10,000.
- Removing a fireplace reduces home values by $24,000.
- An abandoned building within half a block reduces a home’s value by $28,000.
- Without shopping nearby, metal bars on windows, poor roads or bad smells can hurt a homes value by more than $6,000.
Austin tops the list of best places to buy a home
When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?
Looking at the bigger picture
(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).
That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).
They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.
“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”
Average age of houses on the rise, so is it now better or worse to buy new?
With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.
The average home age is higher than ever
(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.
With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.
Prices of new homes on the rise
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.
Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?
The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.
Why Realtors are vulnerable to these rapid changes
(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.
Note: We’ll let you decide which company plays which role in the image above.
So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.
1. Zillow poaches top talent, Move/NAR sues
It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.
Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.
2. Two major media brands emerge
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