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RPX Monthly Housing Market Report Indicates That 18 of 25 Metro Areas Showed Price Declines
Seattle Leads U.S. Markets in Price per Square Foot Growth
| Source: Radar Logic Inc.
NEW YORK, NY--(Marketwire - November 2, 2007) - Seattle, WA, home to several major technology
and biomedical firms, and long known for its high home prices, continues to
demonstrate the highest one year growth in residential price per square
foot according to Radar Logic's August 2007 RPX™ Monthly Housing Market
Report, published today. This report, based on the Radar Logic Daily™
Prices for the 28 days ended August 31, 2007, provides expert insight into
residential real estate markets across Radar Logic's 25 Metropolitan
Statistical Areas (MSAs). The MSAs are analyzed in terms of change in
price per square foot, including leading and trailing markets over the past
one, two and five years.
"Seattle led all markets in price per square foot growth again this month,"
said Jonathan Miller, author of the report and Radar Logic Executive Vice
President and Director of Research. "The Seattle market showed a 6.2%
increase, to $229.96 per square foot over the same period last year.
Seattle was also the highest ranked condo market, with an 8.8% increase to
$260.33 per square foot over the same period last year."
The August 2007 report reveals that 18 of the 25 metropolitan areas
analyzed showed price declines over the same period last year; seven showed
gains, and none were neutral (+/-1%). According to Miller, "This provides
evidence of further price erosions as compared to our report last month,
which showed 14 declining markets, five rising markets, and five neutral
markets."
Significant Reduction in Price Growth Pace
Two of the top five markets saw a significant reduction in their pace of
price growth: Seattle, WA, increased 6.2% over the past year, and
Philadelphia, PA, increased 2.8% over the past year, less than half their
two-year growth rates of 25.2% and 12.9%, respectively. Charlotte, NC,
Milwaukee, WI, and New York, NY, saw slight increases in their one-year
growth rate as compared to each of the past two years.
High to Low Real Estate Values
San Jose, CA, continues to be the highest priced metropolitan area at
$471.69 per square foot, with Cleveland, OH, the least expensive at $95.21
per square foot. Overall, four of the five highest priced metropolitan
markets are located in California. The lowest priced markets are located
in the Midwest and South. Three of the four Midwest markets of Detroit,
MI, Columbus, OH, and Cleveland, OH, had the smallest price increases of
all 25 MSAs over the five year period examined.
The top two condo markets over the past year based on price increase were
Seattle, WA, and New York, NY, with 8.8% and 8.3% price gains,
respectively. "Over the past decade, widespread condominium development
has played a key role in the New York City residential real estate market,"
said Miller. "Manhattan alone makes up 73.5% of the total value of condos
in the five boroughs and 47.3% of the total number of condo units." The
two weakest condo markets were Sacramento, CA and San Diego, CA which saw
10.8% and 8.4% declines in price per square foot, respectively, compared to
the same period last year. The condo market continues to be of particular
interest to investors, and Radar Logic is currently developing products to
specifically address it.
The full August 2007 RPX Monthly Housing Market Report is available on
Radar Logic's website at
http://www.radarlogic.com/research/RPXMonthlyHousingMarketReportforAugust2007.pdf.
About Radar Logic Incorporated (www.radarlogic.com)
Radar Logic, the home of tradable real estate(SM), is a technology-driven
data and analytics business that produces a daily "spot" price for
residential real estate in U.S. metropolitan areas. To do this, actual
transaction data are captured from public sources and translated into the
Radar Logic Daily™ Prices. The Daily Prices, in turn, power the
Residential Property Index™ (RPX™) market, where derivatives and
other financial instruments are offered and traded. RPX allows real estate
and financial professionals to manage risk, invest in real estate without
owning physical assets, and obtain more accurate insight into the
residential property market.
For more information on Radar Logic and the RPX market, including licensed
dealers, visit www.radarlogic.com.