Welcome to Grayling, Mich., where residents paddle canoes through town on the winding AuSable River, ride snowmobiles on forest trails and take scenic walks among 150-year-old trees at Hartwick Pines State Park.
The former logging town ensconced in the woods of central Michigan owns another distinguishing trait, according to a Coldwell Banker study: Grayling’s 6,500 residents live in the nation’s most affordable housing market.
The real-estate firm on Wednesday released its annual survey of the price of a 2,200-square- foot home with four bedrooms, 2 1/2 baths and an attached garage.
Comparing homes that meet those criteria in more than 300 markets, the lowest average price was in Grayling, where such a house costs about $112,000. On the other end of the spectrum lies the San Diego neighborhood of La Jolla, Calif., where a similar home costs more than $2.1 million.
In Colorado, the highest-priced market was Boulder at $622,000; Colorado Springs was lowest at $200,002.
The study’s results also show that homes matching the study’s criteria are becoming more affordable. About a third of the markets in the survey boast an average price below $200,000, the highest number in the past five years. Nationally, prices are down 30 percent from their peak in mid-2006.
The type of property used in the survey represents a “move-up” home, bought by someone who wants a larger place to live because of lifestyle changes, such as a new job or having children.
Known as a solid second-home market, Grayling took a hit after the troubled economy, particularly the embattled U.S. auto industry, led owners to sell off property in their recreation destinations.
Sales lagged until recent months, and prices are starting to stabilize at affordable levels, said Laurie Jamison, a broker at Coldwell Banker Cornell Realty in Grayling. For about $200,000, a buyer can secure a four-bedroom home on the AuSable River.
“People are shocked at what they’re able to get at that price,” Jamison said.
On the high end, La Jolla residents are paying a premium for its proximity to a big city, easy access to the Pacific Ocean and sunny weather. Other California markets such as Beverly Hills and Palo Alto have similar qualities and are in the study’s five most expensive markets.
While La Jolla also experienced a slight downturn, the area has seen sales improve by about 6 percent year over year, said Rick Hoffman, president of Coldwell Banker San Diego. Prices have decreased from the peak three years ago, to the point where move-up buyers are getting more for their dollar.
“(La Jolla) has always been known for beachfront living and for having a real sense of community,” said Rick Hoffman, chief executive of Coldwell Banker San Diego. “It still has a little bit of a small-town feel.”
California claims eight of the 10 most expensive U.S. housing markets.
