The latest survey of housing prices may explain why it’s the “Golden” State after all.
The city with the most expensive single-family dwelling in the United States is La Jolla, Calif., according to the latest Home Price Comparison Index released by Coldwell-Banker Real Estate LLC.
The study, released September 9, compared the costs of 2,200 sq. ft.-single-family dwelling models with two and a half baths, a family room or its equivalent, and a two-car garage. Of the 315 surveyed locations, La Jolla topped the list with an average price of $1,841,667.
Amazingly, seven other California cities also made it on the top 10 list:
• Beverly Hills ($1,777,475)
• Palo Alto ($1,740,731)
• Santa Monica ($1,653,333)
• Santa Barbara ($1,599,667)
• Newport Beach ($1,546,250)
• San Francisco ($1,513,181)
• San Mateo ($1,366,475).
Greenwich, Conn., made it to the second spot with an average price of $1,787,000, while Boston, Mass., ranked no. 9 with $1,493,750. Five other California areas that made the top 20 were Palos Verdes, San Jose, Fremont, Oakland, and Long Beach.
Why so expensive in California?
So what’s with California – aside from the beaches – that make homeowners take a mortgage for a $2 million piece of property? In La Jolla, residents have plenty of outdoor activities during weekends, not to mention that the facilities are top-notch sites.
The Torrey Pines Golf Course provides a professional golfing experience to avid players while the Mount Soledad Memorial Park is a must for hikers. Hordes of shoppers flock to upscale stores in many La Jolla communities, and the city is also home to a number of software and biotech firms that have thrived since the technology bubble.
Other California areas are ideal locations for those seeking careers in Silicon Valley. In its second quarter report, Colliers International San Jose states that this year, the Valley remains optimistic in surpassing the turbulence in the U.S. economy. The current crisis has affected commercial real estate activity in the area with a current lower gross absorption from year to year.
What motivates people to buy in these areas is ability to combine work and an active lifestyle that most Americans desire. Our wise investment picks for properties include La Jolla Shores, Los Angeles County in Beverly Hills, and Clark Drive in San Mateo.
The least expensive city.
Meanwhile, the least expensive area in the index is Sioux City, Iowa, with an average price of only $133,459. The laid back, four county-city is followed by other Midwest areas like Jackson and Grayling in Missouri, Akron and Canton in Ohio, Arlington and Killeen in Texas, Minot in North Dakota, Eau Claire in Wisconsin and Muncie in Indiana.
Alex Veiga of the Associated Press reports that top prices have declined due to the housing slump. Midwest prices, on the other hand, were affected by the unemployment conditions in the area.