$1 Million: What It Buys in the U.S. Housing Market

By Susanne Dwyer

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One-million dollars is a lot of money to most of the world’s population, but it’s a drop in the bucket to a billionaire. The housing market in the U.S. seems to have a similar relationship with homes valued between $900,000 and $1.1 million: Some of them are sprawling estates, while others are considered middle-of-the-road homes.

HouseCanary examined homes valued around $1 million in different metropolitan statistical areas (MSAs) across the country to determine what an “average” million-dollar home looks like, from San Francisco to Tuscaloosa, Ala. We found that what a million dollars will buy can vary widely from place to place—so if you’ve got $1 million to spend on a home, here’s what you can expect to get in return.

Where $1 Million Is Big Money
In most markets, $1 million will get you a lot of house, but they might not be considered mansion material. We found that in the preponderance of markets (110 out of 375 metro areas), a million-dollar home is somewhere between 3,000 and 4,000 square feet. But there are also some markets where you can buy a true mansion or estate if you’re willing to spend between $900,000 and $1.1 million.

Those markets tend to be at least somewhat off the beaten path, so you may be sacrificing some shopping convenience, access to airports, or proximity to cultural, sports, or other local assets. And those markets may not also have relatively high household income, meaning you’ve got to save for a lot longer to make that million-dollar down payment. But the amount of room you’ll get to spread out and do your thing might make that kind of sacrifice well worth it!

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Ohio is one state with several big cities, but it’s in unassuming Lima, about 90 minutes northwest of Columbus, where you’ll find the best deals for $1 million. The average million-dollar home in Lima, Ohio, is 9,435 square feet and sits on a four-acre lot. It has five-plus bedrooms, four bathrooms, and 4-5 parking spots. For that million-dollar home, buyers pay about $105.99 per square foot.

In Lima, most homes are very affordable. To pay a mortgage on a median-priced home in Lima, the median-income household would spend 17.30 percent of its income. The median household income in Lima is $45,575, and you can still buy a home there for much less than $100,000. So it’s not surprising that the two million-dollar homes in Lima are much larger than average!

You’ll find similar bang for your million-dollar buck in Anniston-Oxford-Jacksonville, Ala., about an hour and 20 minutes northeast of Birmingham, where the average million-dollar home is 8,354 square feet and sits on a five-acre lot. It has three bedrooms, 2.5 bathrooms, and 4-5 parking spaces. The price-per-square foot in this corner of Alabama for a million-dollar home is about $119.70.

Homes are also very affordable in Anniston-Oxford-Jacksonville, with the median household spending just shy of 17 percent of total household income ($41,954 annually) on a median-priced house.

Texas is another state with several big cities—Houston and Dallas are two of the biggest cities in the country. In Wichita Falls, Texas, about two hours and change northeast of Dallas, your average million-dollar home comes on a whopping 60-acre lot and is 7,852 square feet. The price-per-square foot is about $127.36—still very reasonable. It has five bedrooms, 4.5 bathrooms and four parking spots, and the median household in Wichita Falls spends just 13.94 percent of its annual $46,043 income on a median-priced home.

$1 Million in the Middle
Even though there are more homes between 3,000 and 4,000 square feet than between 4,000 and 5,000, the average square footage for a million-dollar home across all metros studied is 4,305 square feet—which is quite a bit of room to stretch out, but still only about half the size of the biggest million-dollar homes in the country.

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In the Nashville MSA (which also includes Davidson, Murfreesboro and Franklin, all in Tennessee), an average million-dollar home is 4,302 square feet, with 3-4 bedrooms, four bathrooms, and three parking spots nestled on a 0.96-acre lot. The price-per-square foot is $232.45—more than double the price per square foot in Lima, Ohio.

Affordability in Nashville is also middle-of-the-road: Most economists suggest that households spend no more than 30 percent of their total income on housing, and in Nashville, a median-priced house costs 30.5 percent of the median household income, which is $56,152 annually.

Richmond, Va., and St. Louis (spanning both Missouri and Illinois) are also relatively average markets. In Richmond, an average million-dollar house is 4,312 square feet on an 0.85-acre lot, with four bedrooms, four bathrooms, and two parking spots. The price-per-square foot is $231.91, slightly lower than in Nashville. A median home for a median household in Richmond uses 29.17 percent of its $61,124 annual household income.

And in St. Louis, the average million-dollar home is 4,330 square feet on a 0.93-acre lot. It also has four bedrooms, four bathrooms, and two parking spots. The price-per-square foot is very close to both Richmond and Nashville at $230.95. In St. Louis, the median household (which makes $56,726 per year) spends 21.83 percent of its income on a median-priced home.

Million-Dollar Babies
It makes sense that in areas where housing is more affordable, million-dollar homes are larger. But what happens when affordability starts to creep up (and up…and up)?

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As you might guess, when affording a home captures more and more of a median household’s income, the million-dollar homes get smaller. The smallest average million-dollar home in the country is in San Jose-Sunnyvale-Santa Clara, Calif., at 1,576 square feet, on a 0.13-acre lot. It has three bedrooms, two bathrooms, and two parking spots, and in this MSA, the median household spends 76.33 percent of its income ($100,469 annually) on a median-priced home. The price-per-square foot is an eye-popping $634.52, almost six times what you’d pay in Lima, Ohio, for a home.

In San Francisco-Oakland-Hayward, Calif., you’ll find a slightly bigger average million-dollar home at 1,600 square feet, on a 0.13-acre lot, with three bedrooms, two bathrooms, and two parking spots. The price-per-square foot is $625, just $9.52 lower than in San Jose-Sunnyvale-Santa Clara. A median household in the Bay Area makes $85,947 per year and typically spends 80.20 percent of its total income on a median-priced home.

Honolulu is another market with small average million-dollar properties. In Honolulu, the average million-dollar home is 1,846 square feet on a 0.15-acre lot, with four bedrooms, two bathrooms, and two parking spots. The price-per-square foot for a Honolulu million-dollar home is $541.71—definitely more reasonable than its San Francisco counterparts, but still almost double what you’d pay in Nashville, Richmond or St. Louis. The median household in Honolulu (which makes $77,161 per year) spends 61.62 percent of its income on a median home—still more than double the recommended amount, but much more reasonable than San Jose or San Francisco.

In Boulder, Colo., you can get slightly more square footage for a million dollars than in San Francisco. The average Boulder million-dollar home is 2,270 square feet on a 0.24-acre lot, costing $440.53 per square foot. It has four bedrooms and 2.5 bathrooms, with two parking spots, and the median household spends just over half (51.39 percent) of its $72,282 annual income on a median home.

If I Had a Million Dollars…
Would you rather have a vast estate in Lima, Ohio, or Wichita Falls, Texas, or a cozy family home in San Francisco or Honolulu? Maybe opting for something middle-of-the-road in St. Louis or Nashville makes more sense…and it’s less square footage to clean!

This was originally published on HouseCanary. For more information, please visit www.housecanary.com.

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From: Consumer News and Advice

    

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Nancy Wey
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Zillow: $40 Billion to Flood Into Housing Market, Even as Homeowner Incentives Limited

By Susanne Dwyer

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Americans’ earnings, generally, have gotten a lift on payday as a result of the Tax Cuts and Jobs Act. With cuts come more discretionary spending—and, although there are changes to homeowner incentives, almost $40 billion of it is going into the housing market, according to a new report by Zillow.

“Despite new limits to two longstanding tax benefits for homeowners, the typical American taxpayer saw their tax burden fall in 2018 as a result of tax reform,” says Aaron Terrazas, senior economist at Zillow. “Some of these tax savings will still find their way into the American housing market, even though they were not explicitly targeted there, as renters and homeowners decide to use their tax savings to rent or buy a bigger home, or renovate their existing home.”

Approximately $13.2 billion is estimated to flood into market as owners and renters trade up, while $24.7 billion is expected to be invested in remodeling projects, the report reveals. With an average $1,610 saved per taxpayer (according to the nonpartisan Tax Policy Center), homeowners are projected to spend 15 cents on the dollar to renovate; renters, 11 cents to trade up.

The disparity between dollars for remodeling and trading up is in line with a growing trend: homeowners are forgoing moving up and investing in projects instead of purchasing. While the existing housing stock is in need of updates, when homeowners stay put, inventory shrinks—and currently, inventory is at its lowest on record.

According to the report, compared to higher-income households, Americans in the bottom income tier—who average $60 in savings from the Tax Cuts and Jobs Act—are allocating more of those savings to trade up.

“Lower-income households will spend more of their tax cut on buying or renting a bigger home, adding demand to an already rapidly appreciating housing market,” Terrazas says.

For more information, please visit www.zillow.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

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From: Consumer News and Advice

    

Remember I am just a phone call away to help with all of your real estate needs!

Nancy Wey
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Appreciation Linked to Population Rise

By Susanne Dwyer

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Appreciation and demand go hand in hand, and for investors, both are key to profit, according to a new report.

Assessing the association between growing interest and mounting prices, analysts at HouseCanary found that appreciation is higher where inbound migration numbers are swelling. Boise, Idaho, for example, has had a high influx of new residents, and a corresponding increase in prices across all property types—from 2010 to 2017, Boise greeted more than 57,600 new residents, while apartments appreciated 7.7 percent year-over-year, condo prices rose 7 percent year-over-year, and prices on single-family steepened 5.7 percent year-over-year.

In addition to Boise, HouseCanary found the migration pattern-price relationship in the Deltona-Daytona Beach-Ormond Beach and Orlando-Kissimmee-Sanford, Fla., metros (a combined 404,000-plus new residents); the Las Vegas-Henderson-Paradise, Nev., metro (approximately 181,900 new residents); the Sacramento-Roseville-Arden-Arcade, Calif., metro (approx. 99,200 new residents); the Salt Lake City, Utah, metro (approx. 71,200 new residents); and the Seattle-Tacoma-Bellevue, Wash., metro (310,560 new residents).

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Beyond the correlation between demand and prices, apartments and condos, generally, have faster-growing prices than in the single-family segment, according to the report.

For more information, please visit www.housecanary.com.

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

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From: Consumer News and Advice

    

Remember I am just a phone call away to help with all of your real estate needs!

Nancy Wey
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Amazon Experience Centers Look to Transform Smart-Home Shopping

By Susanne Dwyer

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Amazon is making moves yet again. As a way to market its smart-home business segment without having to invest in conventional store locations, the online marketplace giant has partnered with Lennar Corporation to provide connectivity demos of Alexa-enabled products—everything from video doorbells and smart shades to lighting and scheduled deliveries—within the homebuilder’s model homes, calling these showrooms Amazon Experience Centers.

“Amazon’s ability to bring a home to life with Alexa smart-home experiences, entertainment and services—coupled with their obsession with customer experience—is a natural extension of our Everything’s Included approach to home-building,” said David Kaiserman, president of Lennar Ventures, in statement. “We picked Amazon because of our shared commitment to customers, their Amazon experts across the country, and their ability to connect customers with thousands of service providers through Amazon Home Services.”

These Centers are already open to the public in certain Lennar communities, including in Atlanta, Dallas, Los Angeles, Miami, Orlando, San Francisco, Seattle and Washington, D.C. Within these model homes, prospective buyers can test-control thermostats, lights, shades, locks, televisions and more using Amazon’s trademark smart speaker, Echo, and Alexa AI.

“We wanted customers to experience a real home environment that showcases the convenience of the Alexa smart-home experience, great entertainment available with Prime and Home Services,” said Nish Lathia, general manager of Amazon Services, in a statement. “We are excited to extend our relationship with Lennar with the launch of Amazon Experience Centers. As one of the nation’s largest homebuilders, Lennar offers the potential to enable this experience within easy driving distance of millions of customers.”

Along with its smart speaker offerings, Amazon is also promoting Prime and Home Services, creating an intelligent home environment that is being touted as a money- and time-saver. For example, with Amazon’s Dash series, homeowners would be able to simply press a button to reorder any essentials, such as household items, favorite snack foods, pet supplies and more.

No doubt Lennar will see increased traffic to its model homes because of the partnership, but is this just Amazon’s next step in a larger campaign to fully entrench itself in the real estate industry? Its recent progressions pointing to—yes—talks of a robot give a glimpse into Amazon’s planned future for AI-run households.

Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

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From: Consumer News and Advice

    

Remember I am just a phone call away to help with all of your real estate needs!

Nancy Wey
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Voice Activated: Do You Talk to Your Tech?

By Susanne Dwyer

How many of us are talking to our tech on a regular basis?

Ken Olmstead at the Pew Research Center recently highlighted the fact that nearly half of U.S. adults (46 percent) say they use voice-controlled assistants and applications to interact with smartphones and other devices.

Just over half (55 percent) say “a major reason” they use voice assistants is to permit hands-free interaction with devices.

The Pew study affirmed that voice assistant technology is being widely used to remotely control connected systems, including “smart home” lighting and heating devices. In fact, more than a quarter (26 percent) surveyed use voice assistants to connect remotely to those apps and devices.

So where are the newest voice control technologies being integrated in 2018?

Kohler, the global designer of kitchen and bath products, has introduced Konnect. This new platform allows consumers to conveniently personalize their experience with a growing number of the company’s products through voice control.

Claiming to have delivered the first voice-activated product line for the kitchen and bath, Konnect offers support through Amazon Alexa, Google Assistant and Apple HomeKit.

Say the word and adjust the company’s lighted mirror, order up a soak with their voice-activated bathtub faucet, pick your spritz with their voice-command shower systems—and, yes, even apply a number of controls to the toilet!

Kristen Hicks at SeniorAdvisor.com says voice-activation improvements like these are helping countless homeowners age in place, by turning lights on and off, keeping grocery and to-do lists, reminding folks to take meds, changing interior temperature settings, using voice-activated technology to be sure doors are locked, and, most importantly, calling for help in an emergency. Hicks says while many home alert systems require reaching a phone or a button, a voice command can be issued without having to move.

For the latest real estate news and trends, bookmark RISMedia.com.

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From: Consumer News and Advice

    

Remember I am just a phone call away to help with all of your real estate needs!

Nancy Wey
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20 Desirable Neighborhoods: Popular, but Not Sought-After

By Susanne Dwyer

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Homebuyers often idealize their wants on their wish list—and, for many, location is at the top.

The aspiration for a certain location, however, may be just that: an aspiration, according to a new report by Zillow that identifies what areas buyers are interested in the most:

20 Desirable Neighborhoods, Ranked

Led by L.A.’s The Oaks, Atlanta’s Tuxedo Park and San Francisco’s Presidio Heights, the majority of neighborhoods ranked by Zillow are enclaves with high price tags, suggesting that although buyers have a demonstrated interest in them, it is more out of curiosity or desire than an intent to purchase. Zillow based its list on the neighborhood’s number of pageviews during the first three months of 2018.

“Real estate shoppers are usually very aspirational, so it’s no surprise we have a lot of shoppers looking outside of where they can likely afford and instead, looking at beautiful homes in desirable areas,” says Aaron Terrazas, senior economist at Zillow. “We see these more posh neighborhoods drawing shoppers in, but ultimately, these probably aren’t the neighborhoods most will end up in—the typical price of entry in the majority of neighborhoods on this list is generally much higher than their city as a whole.”

Homes in Malibu’s Point Dume—No. 7 in pageviews—are the steepest: a median $5,995,000, according to the report. Bel Air (No. 4) follows at a median $5,385,000. Homes in Crestwood, in Yonkers, N.Y. (No. 17), are at a median $559,735—the most affordable, relatively, of the top 20. Six of the top 20 are in the San Francisco metro, five are in the Los Angeles-Long Beach-Anaheim metro, and three are in the Atlanta metro—the majority, markedly, are on the West Coast.

“It’s hard to blame these buyers, because, really, who hasn’t dreamed big when home shopping?” Terrazas says. “Oohing and ahhing over beautiful homes has become one of America’s favorite pastimes.”

For more information, please visit www.zillow.com.

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post 20 Desirable Neighborhoods: Popular, but Not Sought-After appeared first on RISMedia.

From: Consumer News and Advice

    

Remember I am just a phone call away to help with all of your real estate needs!

Nancy Wey
281-455-2893

Ask the Coach: Show Your Agents How to Turn Open House Leads Into High-Volume Pipelines and Future Sales

By Susanne Dwyer

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It is officially open house season and truly the best opportunity for your agents to fill their pipeline of listing and buyer leads that, when effectively converted can turn into big profits within the next 90 days. Sunday is notoriously known as “real estate day” in every city in the country. Look at the open house as the best, free lead-generating system to be in front of potential buyers and sellers to create new business.

Use these 5 strategies to help coach and train your agents on how to maximize open houses right now to create listings and sales in the next three months:

  1. Pick the right house to hold open that will have a move-up buyer who also has a house to list. This way, you are getting two sales out of each client. Don’t sit first-time buyer open houses if you want to pick up listings. Also pick the price point that is in the highest demand—that’s where all the buyers will show up every week and create more leads.
  1. Prepare the open house in advance. If you prepare well for an open house you can drive more traffic to it. Post it up to three weeks in advance online to create urgency and showings before the open house. Invite the neighbors with a phone call and a post card. Run a boosted Facebook ad to target buyers to attend your open house.
  1. Offer value during the open house. The agent who provides the most value, gets hired, plain and simple. Offer a homebuyer guide or packet of information branded to you. Include information about mortgages, home inspections and steps in the buying process. Also add value in what you say to help convert the lead.
  1. Focus on getting appointments during the open house. You have a 90 percent greater chance of getting a yes to an appointment if you ask right then. Add value by offering to assist them before they put the house on the market. Letting prospects know you can save them time and money is one of my favorite value adds. Remember you’re just starting the relationship; you’re not going to go over their house to list it. You are cementing the relationship.
  1. Watch my webinar, “How to Make $50K at Your Next Open House.” This webinar makes for your next in-office lunch and learn or special training session to share proven strategies with new or experienced agents. My entire strategy shows agents how to properly prepare, plan and execute the most 2-3 profitable hours of their week. Email yourock@sherrijohnson.com to receive a FREE link of this priceless webinar. Your agents will have immediate results and approach open houses with a new mindset to convert more leads into listings and sales in the next 6-12 months.

Sherri Johnson is a national leader offering world-class real estate keynotes, consulting and coaching while delivering accelerated results. No other coach matches her distinguished 20 years of experience as a top agent and executive of a Top 3 National brokerage. She has recruited, trained and coached thousands of agents, and was responsible for leading over 700 real estate agents and over $1.6 billion in annual sales volume. Johnson’s relevant, real-life and proven strategies, coupled with her high energy, produce immediate results and can triple your income regardless of your current production. Johnson is the national speaker for Homes.com for its Secrets of Top Selling Agents national tour. Contact coaching@sherrijohnson.com or 844-989-2600 (toll-free) or visit www.sherrijohnson.com.

For the latest real estate news and trends, bookmark RISMedia.com.

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From: Home Spun Wisdom

    

Remember I am just a phone call away to help with all of your real estate needs!

Nancy Wey
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