Agenda - Council - 09/13/2016 - Laserfiche WebLink

Home

FOR -SALE HOUSING MARKET CONDITIONS • In 2001 the Market Area had 1,976 homes for sale under $200,000, by 2005 that number de- creased to 500. The majority (63%) of the homes sold in the Market Area in 2005 were in the $200,000 to $300,000 price range. Table 12 indicates that much of the single-family housing stock in the Market Area is priced beyond the reach of most moderate income fami- lies (who can afford a maximum home price of about $215,000). Multifamily Horne Sales • For -sale multifamily homes are a relatively new concept in the Market Area, as their devel- opment did not begin on a large scale until the later 1980s. As such, the average age of the multifamily units sold in 2005 was 1999 in the PMA and 1992 in the SMA. • The median resale price of multifamily homes in 2005 (through December 14) was about $189,000 in the PMA and $172,000 in the SMA. As with single-family homes, the SMA has a lower median sale price largely because it has an older housing stock. • Median home prices in the Market Area have appreciated by an average of 7.7% over the past four years, or slightly slower than the median value of single-family homes. The median resale price was $129,200 in 2001 and $173,400 in 2005 (through December 14). • In 2001 the Market Area had 717 homes for sale under $200,000, by 2005 that number de- creased to only 668. The shift in home prices under $200,000 for multifamily homes was not as dramatic as it was for single-family homes. The dramatic shift for multifamily homes oc- curred from those priced between $100,000 and $150,000 (609 sales in 2001 to 137 sales in 2005) to those between $150,000 and $200,000 (84 sales in 2001 to 531 sales in 2005). • Comparing single-family resale trends with multifamily resale trends shows that for most moderate income households (incomes under about $60,000), multifamily homes are increas- ingly becoming the most affordable housing ownership option. While about one -quarter of the existing single-family homes sold in the Market Area in 2005 were over $210,000, or out of reach of most households with incomes below $60,000, 87% of existing multifamily homes sold for under $210,000. It should be noted, however, that many of the multifamily units only had two bedrooms and would not be suitable for families with two or more chil- dren. MAXFIELD RESEARCH INC. 26