Springfield homes prove to be affordable in comparison study

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by Eric Olson|ret||ret||tab|

SBJ Reporter|ret||ret||tab|

eolson@sbj.net|ret||ret||tab|

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Housing in the Springfield area is the most affordable of Missouri's three largest markets and ranks No. 24 in the nation, according to Coldwell Banker Real Estate Corporation's national home price comparison index released Oct. 22.|ret||ret||tab|

With an average sales price of $158,250 in the first half of 2003 for a 2,200-square-foot house Springfield home values fall more than $35,000 below St. Louis, the most expensive market in Missouri. The average sales price in Kansas City is $192,250, just below St. Louis' $193,466, according to the index.|ret||ret||tab|

The study, based on data from Coldwell Banker sales offices in 317 markets across the United States and 25 markets in Canada, evaluates cost variances of homes with 2,200 square feet, four bedrooms, 2 1/2 bathrooms and two-car garages. It is designed as a resource tool for those considering relocating, said Judy Huntsman, president of Coldwell Banker Vanguard Realtors in Springfield.|ret||ret||tab|

"The purpose of the home price comparison index is for people coming and going so they know what to expect when they come here," said Huntsman, whose office has been participating in the study the last 10 years.|ret||ret||tab|

For comparison's sake, the $158,250 Springfield house would cost $228,725 in Dallas and $610,375 in Chicago, the index shows. The national average was $318,172, up 9 percent from 2002's $291,097.|ret||ret||tab|

Springfield Home Builders Association Executive Director Matt Morrow said that data is on par with what HBA members say.|ret||ret||tab|

"That's very consistent to what we hear anecdotally from our builders and from their customers who move here from other areas: that they can get higher quality at a better price in the Ozarks than wherever they came from," Morrow said.|ret||ret||tab|

As a result, migration to the Springfield area from higher-priced areas such as California, Denver and Dallas has risen, according to Missouri's Department of Economic Development report "Chasing the Neon Rainbow." Migration patterns netted the Springfield region 17,079 people and $331 million in additional income from 1995 to 2000. |ret||ret||tab|

The report shows California represented the largest group of movers, as nearly 900 people relocated to the region from California, bringing with them a net income of more than $15 million during that same period. The DED report, released in November 2002, cites the U.S. Internal Revenue Service for its income figures and the U.S. Census Bureau for its population numbers.|ret||ret||tab|

"We're getting people moving from California, but honestly, I think everyplace is getting people moving from California and a big part of the reason is that it has become beyond the reach of most normal incomes to live there," Morrow added. "Largely, that's because of an over-regulated housing market."|ret||ret||tab|

Six of the 10 most expensive places to live in the Coldwell Banker study are in California, with La Jolla tops at $1,362,375 for a 2,200-square-foot house. Three other markets have average sales prices above $1 million: Palo Alto, Calif., $1.18 million; Greenwich, Conn., $1.17 million; and Beverly Hills, Calif., $1.1 million. Other California markets in the top 10 most expensive are San Francisco, Newport Beach and Manhattan Beach.|ret||ret||tab|

Morrow believes Springfield builders have maintained affordable prices because local governments have reasonable regulations in place.|ret||ret||tab|

From the standpoint of new housing, local builder Tim Harrington said competition helps keep pricing down. Area developers sell subdivision lots to numerous home builders, thus creating competitive prices, whereas larger market subdivisions are often developed by a single builder, controlling costs, he said.|ret||ret||tab|

"That's kept the big 10 (national) builders out of here," Harrington said.|ret||ret||tab|

Morrow agreed, adding that a large number of low-volume builders locally keep new construction prices from escalating.|ret||ret||tab|

"Most of the market is made up of builders who don't build a huge number of homes every year," Morrow said. "The result is very good for consumers. Even though there is great demand, there is also a great level of competition."|ret||ret||tab|

While best in the state, Springfield's numbers ranked No. 24 in the country. Binghamton, N.Y., was most affordable at $121,400 a $1.2 million difference from the country's most expensive market, La Jolla. The cities in closest proximity to Springfield in the top 10 most affordable are Oklahoma City, Okla., at $132,670, Topeka/Shawnee County, Kan., at $136,266 and Tulsa, Okla., at $136,625, Nos. 4, 5 and 6, respectively.|ret||ret||tab|

The criteria for the index is a single-family dwelling of 2,200 square feet, four bedrooms, 2 1/2 bathrooms, family room and two-car garage in neighborhoods/zip codes within a market that is typical for corporate middle-management transferees. Coldwell Banker sales offices submitted the average price of sold listings in the first half of 2003 that met the criteria.|ret||ret||tab|

The full study can be accessed at www.coldwellbanker.com.|ret||ret||tab|

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