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I was in a discussion in another forum, non real estate forum, and the discussion on land and home values came up. The individual who happened to be from New Jersey mentioned that in New Jersey the land is more exspensive than in California. I had no idea what the cost of land in New Jersey was but I know what it cost in my area of California.
I checked New Jersey land values and could not find any that were as high in price as what they would be in my area. I did find a 3 acre lot place with a 4,200 square foot home that was built in I think 2007 for sale at an asking price of just over $600,000 in New Jersey. That to me is a sweet price for a home. I mentioned that in Oxnard we have a development of homes that was built between 2003 and 2007 that are in a gated, golf course community that sit on lots in the 6,000 to 8,000 square foot range and you would be looking to spend $700,000 if you could find one that low. Many of those homes are in the $1million range and up.
Still this other poster brought it up that New Jersey prices were higher than Oxnard California prices.
For reference:
I live in Oxnard a city that is between Santa Barbara to the north of us and Malibu to the south of us, situated on the Coast. It is normal to find a low cost home priced in the $400,000 range and think you are lucky to get it, in todays dollars anyway. That would be for a 1,600 or so square foot home built in the 50's or maybe up to the 70's sitting on a 6,000 square foot lot. A home that has between 3 and 4 bedrooms and 2 or more baths. The weather here is mild year round so heating and cooling is seldom an issue. We don't spend money to heat or cool our home. Water is an issue and we are thinking about putting in fake grass. LOL
My thought is that maybe what we think is normal and justifiable for a home price and value maybe is not the same for everyone else. I am betting that many would think it is criminal and way out of line for what a home should be sold for when I mention the prices for a 50+ year old modest home while If you were raised on high home prices you start to think that is the norm.
That lead me to think what is the norm or what do you see as a normal price for a home. Do you see high prices in your area and think that your area is a high priced area. Do you see your area as a low priced area. What is normal for your area in the way of prices. leave a reference point for the kind of home that you are living in and what it might sell for in the current market in your area.
I understand that all real estate is local. I am just thinking it would be interesting to see what other people are up against or blessed with when it comes to price
houses in my immediate area are going for 500k and up in beat up condition. Brand new they can go for high7s to low 8s
Beach front are 1 mil plus and you're talking 1940s houses. Anything new or recently built you're in the 1.5 and up. For ocean front bay front 2 mil and up
On 4 streets (Raleigh, Stuart, Utica, Vrain) in my Denver neighborhood (Berkeley), land sells for $2.8M/acre.
That is, a 6200 sqft lot with a scraper on it sells for $400K. A duplex will be built on that land and each unit will sell for $670K.
For reference: I live in Oxnard... It is normal to find a low cost home priced in the $400,000 range
...for a 1,600 or so square foot home ... on a 6,000 square foot lot.
A home that has between 3 and 4 bedrooms and 2 or more baths.
But it's still Oxnard.
Quote:
My thought is that maybe what we think is normal and justifiable for a home price
and value maybe is not the same for everyone else.
It isn't normal.
I've been beating my head against the wall on this point since I lived in Orange County in the 70's.
My CalPoly-SLO son and now Simi Valley daughter are finally getting it.
(He's in IA and she is looking to move back east)
Quote:
That lead me to think what is the norm or what do you see as a normal price for a home.
I am just thinking it would be interesting to see what other people are up against
That home you described above would top out at about $200,000 here; maybe $240k.
In a nicer suburb of Raleigh or Charlotte or Baltimore (where I'm from): $300 - $400,000 range.
Farther out from Baltimore, where the DC commuters have had more influence... even more.
But in a similarly nice suburb of LA your house would also be more; probably $600,000;
The house like it that I rented when in Costa Mesa ...is now $800,000.
I bought *most of it** here in central NC, city limits, city services, mediocre schools...
but on a much bigger lot, 3BR/2BA, detached garage, abutting woods, for a LOT less than $200k.
Last edited by MrRational; 04-08-2015 at 11:27 AM..
I don't think it's normal, but in my neck of the woods (90266) I'd expect teardowns to start at around $1MM and the average house to sell for about $1.7 - $2MM.
I think our area is cheap and you get a lot for your money compared to the last two places I lived in. (Chicago and Miami) But what I get a lot from folks moving in is their expectations are unreasonable for our area. They are wanting mansions on acreage for the price of an tiny apartment back where they came from, not happening.
And prices are widely different here but I would say the norm is the 250K-350K range for a great school district and a 3/2 home on almost an acre.
I'm in the Maryland suburbs of Baltimore/Washington, D.C. If we are talking single family homes in a desirable area with well known schools... easily $375k+ for a 1960's rancher that needs to be totally renovated. Newer build, nice sized lot (let's say 1/2 acre), 3000+sq ft updated home? $650-700k would be a good bet for a starting ballpark. I'm originally from the Midwest (Ohio) and still, years later, my husband finds Maryland prices just disgusting. For instance, the same home in Ohio would be $130k...Maryland it is $400k. However, a had a client from Boston recently and laughed at how affordable the prices are in my area compared to Boston. So to answer your question, yes, its all about the land!
So to answer your question, yes, its all about the land!
No... it's not.
It's about all the other soft features that don't exist in any one house or on that lot.
In coastal California it's about sunshine too but it's about things like access to amenities
and schools and in particular access to the better paid jobs needed to afford those prices.
That concentration of income directly impacts the median price.
In the example given... that $400,000 home price should come with a $160,000 household income.
If that family wants a real chance in life... that $160,000 NEEDS to be from one earner.
What jobs (in Oxnard) reliably pay $160,000 per year?
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