May 13 — How much home you'll get for your money depends entirely on where you live. Consumer Watch took a look at how the Central Valley's housing market stacks up with the rest.
A bubbling creek running right through the backyard, a
large swimming pool, a brand new, state of the art kitchen — all things Nancie
and John Vautier of Sanger never dreamed of.
"No, I never never thought I could afford anything like this," says Nancie.
"We sit in the backyard now and we just grin at each other and say I just love
it out here, it's just wonderful."
It's wonderful because when they sold their small home in the Bay Area to
move to Sanger, they made a $330,000 profit.
"When I got the money in escrow from my old home, we came down and looked and
saw this the first weekend and got it that weekend," says John.
They're very typical of a new type of Central Valley resident — equity
refugees. Buyers who often pay cash for their home in the Valley after making a
handsome profit elsewhere.
Oftentimes, they are out-of-town investors just looking for a bargain.
While that means Fresno prices are rising quickly, they're still considered a
steal compared to the rest of the state.
According to the California Association of Realtors, the average home price
in the Fresno area is now $314,000.
Los Angeles home prices are at an average of about $473,000 and the average
home costs $678,000 in San Francisco.
While the numbers are astounding, it's even clearer with an actual
side-by-side home comparison.
Here is what you can get for $500,000 in North Fresno: 4 bedrooms, 3 bath,
over 2,500 square feet, with a pool.
Compare that to a much more modest $500,000 home in the East Bay Area: a 3
bedrooms, 2 bath, 1,100 square feet fixer upper.
Here is what you can get for $1 million in North Fresno that looks like a
mansion: 5 bedrooms, 4 baths, over 4,500 square feet, with a pool.
A $1 million home in the East Bay Area is nice, but hardly a mansion: 4
bedroom, 2 baths, 2,500 square feet and a pool.
California is home to 7 of the nation's 10 least affordable housing markets.
Comparing, for example, what a million gets you in Morristown, New Jersey,
Toledo, Ohio and Raleigh, North Carolina, you get significantly more bang for
your buck.
Even the Central Valley has stopped being affordable to a lot of people. Full Article: http://abclocal.go.com/kfsn/features/consumerwatch/print_consumer_051305_home_comparison.html
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