Springfield fares well in housing affordability

Springfield’s housing market was dubbed the most affordable in Missouri in Coldwell Banker Real Estate Corp.’s Home Price Comparison Index, released Sept. 27. The city also fared well nationally, ranking No. 21 among 50 U.S. cities.

Average prices were calculated for homes in 384 markets worldwide in areas popular for corporate middle-management transferees.

The homes were profiled as single-

family houses spanning about 2,200 square feet with four bedrooms, two and a half bathrooms, a family room and a two-car garage.

The “typical” home may be affordable in Springfield, but that type of home isn’t hugely available, said Stacey Clem, president of the Greater Springfield Board of Realtors. The GSBOR Multilist shows eight homes on the market that fit the profile description; they are listed between $180,000 and $190,000.

Springfield’s 2006 average sales price of homes in the profiled category was $188,318, according to the survey, more than $66,000 lower than in St. Louis, Missouri’s most expensive market.

Internationally, the most affordable housing market was found in Minot, N.D., where the average home cost $132,333; Beverly Hills, Calif., was named the most expensive market, with typical homes nearing $1.8 million.

“Springfield’s very affordable compared to anyone in the state, or the nation for that matter,” Clem said. “That’s one of the reasons that’s keeping our market moving as well as it has.”

Area Realtors cite different reasons for Springfield’s affordable housing market, but many agree the city’s low cost of living plays a major part.

Clem also says the availability of attractive land in Springfield keeps prices low, as there isn’t a fight for prime property like there is along the coasts.

“We still have a lot of space to grow, and the cost of lots aren’t nearly as expensive,” she said.

Matt Holden, a Realtor with Home Team Property, said Springfield’s overall desirability and its opportunity for employment has helped keep local prices in check, as well.

Springfield’s claim to fame as an affordable housing market isn’t an entirely accurate indication of local home sales, which have cooled slightly in the last month.

Between Sept. 9 and Oct. 9, 574 houses sold, compared to 819 sold during the same period in 2005.

However, year-to-date sales haven’t seen the same radical decline – 6,647 homes have sold since Jan. 1, a 2 percent decrease from 6,764 in the same period last year.

Sales may be slowing, but home listings are up nearly 20 percent from last year, Clem said.

“People are trying to beat the market because they’re worried it’s going to get worse before it’s better, so they’re trying to put their houses on the market now,” she said. “I know in Springfield, Missouri, we’re not going to see a big downtrend. We’re too diverse of a market.”

Most affordable housing markets in the Midwest

City Average sales price

Rank

Minot, N.D. $132,333

No. 1

Grayling, Mich. $144,250

No. 3

Topeka, Kan. $148,050

No. 4

Canton, Ohio $148,333

No. 5

Eau Claire, Wis. $161,531

No. 10

Sioux Falls, S.D. $170,775

No. 12

Evansville, Ind. $175,437

No. 14

Sioux City, Iowa $184,000

No. 17

Rockford, Ill. $186,626

No. 19

North Platte, Neb. $187,750

No. 20

Springfield $188,318

No. 21

Rochester, Minn. $218,084

No. 29

Source: Coldwell Banker Real Estate Corp. 2006 Home Price Comparison Index