Price Per Square Foot Rising in Most Markets

As the economy continues to grow jobs, consumer confidence rises and residential rental rates increase, the demand for housing rises. Given a very tight inventory of builder-ready lots, new home construction is trailing demand. As a result, asking prices for both new and existing homes, and ultimately sales prices, are climbing. In some cities prices are literally rocketing.

Movoto, a licensed real estate brokerage firm in more than 30 states, tracked 38 cities, comparing average list price per square foot from June 2012 to June 2013. Just two of the 38 cities covered in the period showed a decline in listing price: Chicago, down 3.2 percent and New Orleans, off 2.2 percent. The average across all 38 cities was an increased asking price per square foot of 14.4 percent.

Just like automobiles, in some circumstances there may be some room for negotiation. And just like cars, sometimes buyers are willing to pay above the asking price, with multiple offers in many markets for properties now common place.

The following table shows the average asking price per square foot comparison for June 2012 and 2013 along with the percentage change during that months period.

7-10-13 graph

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Once again, the data continue to support a systemically improving housing market, with just two of the 38 cities not showing gains.

I do believe we will all look back at this point in time in three years, and wish we had acquired more real estate.

To find out what your local market is doing, contact a local Realtor® or real estate broker or agent.


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