According to a report released by Coldwell Banker on Wednesday, the Wall Street Journal Chinese website reported that Newport Beach, California, is the most expensive real estate market in the United States, while Detroit is the cheapest.
The Coldwell Banker Home Listing Report analyzed over 18,000 four-bedroom, two-bath homes listed on ColdwellBanker.com from February to August, covering nearly 300 markets. The average listing price of these homes is $353,000, with an average price difference of $1.7 million between the most expensive and the cheapest markets.
The findings were not surprising: Jim Gillespie, CEO of Coldwell Banker, stated that the most expensive markets are primarily located in California and the Northeast, while the cheapest are in the Midwest.
He noted that people enjoy sunshine, beaches, and mountains. California is a land full of opportunities and is one of the largest economies in the world, with its real estate market beginning to rebound.
In contrast, home prices in the Midwest tend to be lower. Cities like Detroit and Cleveland have been struggling economically, leading to further declines in home prices in those areas.
Gillespie mentioned that the average price in Detroit is approximately $68,000. Buying a home at this price, assuming a 20% down payment and a 30-year fixed mortgage at an interest rate of 4.5%, would result in a monthly mortgage payment of $350, including principal and interest.
Top Ten Most Expensive Cities for Real Estate
According to the newly released report by Coldwell Banker, the top market is Newport Beach, which is the filming location for many TV shows, including The O.C. and Arrested Development. Five other cities in California also made the list.
Below is the list of the most expensive cities for real estate along with their average prices:
1. Newport Beach, California - $1.83 million
2. Palo Alto, California - $1.48 million
3. Rye, New York - $1.33 million
4. San Francisco - $1.33 million
5. La Jolla, California - $1.21 million
6. Greenwich, Connecticut - $1.20 million
7. Wellesley, Massachusetts - $1.08 million
8. Pasadena, California - $1.04 million
9. Honolulu - $1.03 million
10. Santa Barbara, California - $1.02 million
Top Ten Cheapest Cities for Real Estate
The report shows that nearly 30% of the cities analyzed have average prices for four-bedroom, two-bath homes at $200,000 or below, with many people hoping to own such homes.
However, the average prices in the ten cheapest cities are far below this figure, with four cities having average prices below $100,000.
Below is the list of the ten cheapest cities for real estate along with their average prices:
1. Detroit - $68,007
2. Grayling, Michigan - $84,625
3. Sioux City, Iowa - $85,967
4. Cleveland, Ohio - $87,240
5. Muncie, Indiana - $100,314
6. Norfolk, Nebraska - $107,814
7. Kansas City, Missouri - $112,449
8. Canton, Ohio - $114,325
9. Port Huron, Michigan - $116,267
10. Topeka, Kansas - $116,343
