Monday, February 13, 2012

Major Metros Get Too Pricey for Some Buyers

More Americans may be growing reluctant to buy homes in some of the nation’s priciest areas because of the high cost.

“Even though people often say they want to live in urban neighborhoods where they can walk more and drive less, they get more for their buck where the car is king,” says Jed Kolko, Trulia’s chief economist. “Most long-distance searches are toward smaller, suburban, more sprawling areas, not toward the older, dense cities of the northeast.”

According to a new study by Trulia and 24/7 Wall St., Americans may be avoiding relocation to the following metro areas due to the high costs of real estate:

1. Newark-Union, N.J.-Penn.
Median home price: $400,000

2. San Jose-Sunnyvale-Santa Clara, Calif.
Median home price: $546,000

3. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.
Median home price: $390,000

4. Philadelphia, Penn.
Median home price: $265,000

5. Bethesda-Rockville-Frederick, Md.
Median home price: $700,000

“Most of the cities attracting lots of search activity from outsiders had huge price declines during the housing bust,” says Kolko. “They’re now much more affordable than they were during the boom — especially to people in cities where prices are still high.”

Source: “Newark, San Jose, Washington and More Major Cities Where No One Wants to Move,” 24/7 Wall St. (Feb. 10, 2012)

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