Pricey Homes Clustered in California

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California had seven of the top 10 highest-priced American real estate markets, led by La Jolla, Beverly Hills, and Santa Barbara, while North Dakota had the cheapest, according to a study by Coldwell Banker Real Estate Corp.


A $130,300 home in Minot, N.D., cost $1.71 million in La Jolla, according to the Home Price Comparison Index compiled from January to July by Coldwell Banker, which is owned by New York-based Cendant Corp. The index computed average sale prices for a 2,200-square-foot, four-bedroom home in 348 markets that were popular with transferring corporate executives.


While low mortgage rates have fueled record gains in American home sales and prices, not all markets have benefited, an economist at the National Association of Realtors, Lawrence Yun, said in a telephone interview. Anaheim, Calif., had a 39% price increase last quarter from a year earlier, while Knoxville, Tenn., saw prices fall 7%.


“There are vast differences as you look at regional markets – some states have homes with prices 6 to 7 times higher than other areas,” said Mr. Yun. “It’s mostly due to quality of life, income, and the supply of land to build on.”


In the no. 4 market, Palo Alto, Calif., a 2,200-square-foot home had an average price of $1.21 million, and in Greenwich, Conn., ranked no. 5, it cost $1.19 million, according to the index.


Newport Beach, San Mateo, and San Francisco markets followed in the ranking, with Wellesley, Mass., at no. 9 and Kailua-Kona, Hawaii, at no. 10.


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