University of Michigan Study Examines State Job Futures

WJRT

For those wondering if the the job market will ever get any better, there are some answers from a new study by University of Michigan economists.

The good news, the economists say, is the job market finally hit bottom this year. And after losing nearly 250,000 jobs in a five-county region over the past decade, the number of jobs will actually start increasing next year.

"It's going to be good for the people who are employed, because there will be less risk that they'll lose their job, but for a lot of people who are unemployed, it's not going to look any better," said economist Don Grimes.

In it's first-ever report to the five-county Economic Growth Alliance Region -- which includes leaders from Genesee, Lapeer, Livingston, Oakland and St. Clair counties -- a team of U of M economists have analyzed the trends and spelled out what lies ahead in the years 2011 and 2012.

"House prices will still be low, and we don't see any improvement in people's 401-K balances, either," Grimes said.

But they do project a net gain in jobs in 2011 -- finally a turnaround from the past nine years, which have seen annual job losses.

The net gain, they say, is less than 3,000 new jobs for this region in 20111 and more than 8,000 jobs added in 2012.

The sectors that will grow include information services, professional scientific private education, construction, medical and health services.

As for the jobs of the future, manufacturing , they say, will continue to be making up its numbers till 2012.

Services like barbershops will have to wait for growth until people stop saving as much and start spending more, but the next few years do not look good at all for government employees and public school jobs.

One other interesting trend is it appears the self-employed sector has been growing as the number of traditional jobs has shrunk.

Jobs Essential To Future Housing Market

Every Thursday the chief economist of the National Association of Realtors' reviews data he deems critical to the future housing and real state markets.

His focus is not about home prices or interest rates. What the economist finds highly important is a report reflecting new jobless claims. He views the country's employment situation as an essential factor to stabilizing the U.S. housing and real estate sectors.

"We need jobs; jobs (are) the key thing," said Lawerance Yun, the chief economist of nation's realty market. He lectured to the Economic Club of Traverse City on Friday as a guest speaker of the Traverse Area Association of Realtors.

Yun warned that an array of issues are influencing the current housing market. The challenges range from high foreclosure rates to strick lending and credit risk management practices to an over-abundance of unsold properties.

In a positive light, he also noted the country's housing market as well as overall economy is capable of a quick rebound if the job market improves. In addition, as more corporations start to invest in large sums of cash they have earned over the recession, the economic conditions can grow even stronger.

"We still have a very long way to get to full employment," said Yun, who projected up to five years before the country's jobless rates taper to pre-recession levels.

In his speech, Yun targeted the significant fall-off in the country's real estate sales in July but claimed it was not an unexpected turn of events. As the tax credit for federal homebuyers reached its expiration, interested investors flocked to their local home buyers agency to finalize purchases by late June. It wasn't unusual to see home sales drop the following month, he said.

"It's not a 'sky-is-falling' scenario," Yun said.

He projects a "pause" in sales that will continue into September but mentioned real estate sales in the fourth-quarter will be the underlying predictor of the future housing industry. If fourth-quarter real estate sales are consistent with the number in previous years, he expects the overall market for homes will continue to stabilize.

One Raleigh real estate agent, Ann Davis, who works exclusively for a buyer's only agency, has already seen improvements in sales as an emerging influx of families and individuals migrate to North Carolina for career opportunities.

"It is culmination of being in a location that is higher in demand as well as providing niche home buying services that your typical Raleigh real estate agency does not offer," Davis said. She is hopeful that sales will continue to thrive.

Yen warned listeners during his speech in Traverse City that if sales figures are measurably lower in the upcoming months, the country's economy may be headed for a "double-dip" recession.

"If the fourth quarter matches up with the prior fourth quarters, I think the worst is over," he said.

Yun pinpointed other areas of the country's economy in his talk. He touched on the spectrum of opinions regarding where the economy is headed, with some economists foreseeing risks of inflation as others are more worried about prices growing stagnant.

Positive signs do however exist in the housing market. Default rates on recent real estate and home sales have improved, and precise loan origination software has enabled lending practices to minimizing the instances in which interested buyers are purchasing homes that are far more expensive than they can afford. Such tools have also improved credit risk analysis efforts which also contribute to the financial mix of the housing market.

"I think we have to return to the old-fashioned American way ... stay within your budget," Yun said.

As for Ms. Davis and her Raleigh home buyers agency, her future sales figures will a solid source for nationwide projections. She is going to be the one to watch, for Ann is already at the forefront of the emerging real estate market trends.

Home Buyer Credits Expired -- Now What?

My North

Traverse City Realtor Matt Dakoske discusses the Northern Michigan and Traverse City real estate market possibilities now that the home buyer tax credits have ended.

Time is running out on the home buyer tax credit. To be eligible for the federal tax credits — up to $8,000 for qualified first-timers and up to $6,500 for certain repeat buyers — houses had to have been under contract by April 30, with settlement by June 30, 2010

Locally, the deadline is pushing people to complete home purchases faster than they might have otherwise. Matt Dakoske of ReMax Bayshore Properties said the tax credit is good for business, though he has some concerns about what will happen post-deadline.

“It’s created a very busy market,” he said. “A lot of people are trying to get business accomplished. It will be interesting to see what happens, what will come on the market after the deadline, whether buyers will still be there,” he says.

Dakoske thinks the market may slow down slightly, but given the economic conditions, he’s guardedly optimistic sales will continue. He compares it to the situation following the end of the “cash for clunkers” program.

“Like the auto incentive program, it will probably slow down some (immediately) following. But it’s our selling time. Prices are right, interest rates are good.”

Dakoske also sees one other cautionary note, the challenge with short sales, where the lender agrees to take a loss on the amount owed on the home to clear it from its books.

“Buyers with short sales are concerned whether they will close by June 30, or will they be back on the (buying) market if they don’t get a commitment” from a lender, he said.

Detroit Shrinks Itself, Historic Homes and All

The Wall Street Journal

Detroit to demolish 10,000 abandoned properties

Mitt Romney's boyhood home is among 3,000 derelict structures Detroit plans to demolish by the end of September as it attacks blight and crime.

DETROIT—Wrecking crews are preparing to tear down a landmark 5,000-square-foot house in the posh neighborhood of Palmer Woods in the coming weeks, a sign that Detroit is finally getting serious about razing thousands of vacant and abandoned structures across the city.

In leveling 1860 Balmoral Drive, the boyhood home of one-time presidential candidate and former Massachusetts Gov. Mitt Romney, Detroit is losing a small piece of its history. But the project is part of a demolition effort that is just now gaining momentum and could help define the city's future.

Detroit is finally chipping away at a glut of abandoned homes that has been piling up for decades, and intends to take advantage of warm weather and new federal funding to demolish some 3,000 buildings by the end of September.

Mayor Dave Bing has pledged to knock down 10,000 structures in his first term as part of a nascent plan to "right-size" Detroit, or reconfigure the city to reflect its shrinking population.

When it's all over, said Karla Henderson, director of the Detroit Building Department, "There's going to be a lot of empty space."

Mr. Bing hasn't yet fully articulated his ultimate vision for what comes after demolition, but he has said entire areas will have to be rebuilt from the ground up. For now, his plan calls for the tracts to be converted to other uses, such as parks or farms.

Even when the demolitions are complete, Detroit will still have a huge problem on its hands. The city has roughly 90,000 abandoned or vacant homes and residential lots, according to Data Driven Detroit, a nonprofit that tracks demographic data for the city.

After a stuttering start, caused by a dispute over the disposal of asbestos from demolished homes, the program is just now gaining pace.

City officials say they aren't sure how many structures ultimately need to be torn down. The mortgage crisis compounded Detroit's economic decline, leaving nearly 30% of the city's housing stock vacant, according to Data Driven Detroit.

"Neighborhoods that are considered stable are now at 20% vacancy," said Deborah Younger, a development consultant involved in the demolition effort.

Until recently, the city didn't have the funds to tackle its growing list of houses slated for demolition. But $20 million in federal funds, primarily stimulus dollars has helped to kick-start the effort.

Demolition, particularly of historic buildings, is a sensitive issue in Detroit, often leading to wrenching battles between developers, residents, city officials and preservationists. But many residents are now pleading with the city to tear down decaying structures that are attracting crime and repelling home buyers. However, some still worry that the sort of large-scale bulldozing that the city is now talking about will forcibly dislocate longtime homeowners and preclude any chance of a comeback for Detroit.

"The city has never done this before," says Ms. Henderson, the Building Department chief. "We had to make a culture change."

The demolition of the Romney family home is the first of its kind in Palmer Woods, a high-end enclave in northwest Detroit that was developed at the dawn of the U.S. auto industry and housed many of its pioneers. Palmer Woods has just a handful of vacant properties among its 292 homes, according to residents. It's one of the anchor neighborhoods that is critical to the success of Mayor Bing's right-sizing effort.

The house was owned by Mr. Romney's parents, George and Lenore Romney, from 1941 until 1953, when the family moved to the northern suburbs. The elder Mr. Romney would go on to become head of American Motors Corp., then governor of Michigan and U.S. secretary of Housing and Urban Development.

As recently as 2002, the house sold for $645,000. But it has had a troubled history since then, lapsing into foreclosure more than once, bouncing between lenders and falling into disrepair. Last year, following years of complaints from neighbors, Wayne County declared it "a public nuisance and blight" and ordered it demolished.

The younger Mr. Romney, who is considered a leading GOP presidential candidate for 2012, said "it's sad" that his childhood home is being razed, "but sadder still to consider what has happened to the city of Detroit, which has been left hollow by fleeing jobs and liberal social policies."

Residents of Palmer Woods take pride in their tradition of historic preservation. But they're happy to see this house go. "This is an eyesore, and it makes no economic sense to fix it," said Joel Pitcoff, a retiree who lives around the block. "Who wants to spend $1 million on a house so it will be worth $400,000?"

Realtors, Builders Dangle Perks to Woo Home Buyers

The Detroit News

Some worry that sales will decline in wake of federal tax credit

 

 

Some players in the Metro Detroit housing and real estate industries have created their own home sales incentives in an attempt to keep alive the increase in business sparked by the now-ended federal first-time home buyers tax credit.

At the end of last year, an estimated 80,000 people in Michigan had used the tax credit of up to $8,000 for a first-time home purchase, according to the Michigan Association Realtors.

Many Metro Detroit real estate agents reported a surge of deals this year before the credit expired at the end of April, though exact figures are not available. A survey done last year by Coldwell Banker Real Estate LLC agents found that 34 percent of potential homebuyers said the tax credit was the reason they were searching for a home or condominium.

To maintain the home sales momentum, Coldwell Banker launched its "Buyer Bonus Sales Event," a promotion that essentially extends the monetary bonus of the federal program from May 1 through July 31.

Participating Coldwell real estate agents are giving a 3 percent credit up to $8,000 of the accepted offer price to homebuyers who sign a contract before the deadline. It is unclear how many local sellers have signed up for the program, said Kelly Sweeney, CEO of Coldwell Banker Weir Manuel in Birmingham, which is participating.

"What we have to do now is convince potential buyers that there are still historical low interest rates, great prices and sellers willing to make deals," Sweeney said.

Luxury homebuilder Toll Brothers Inc. also is trying to pump up interest by continuing several incentive programs it began last year. One approach allows buyers up to 14 months to build their new home, which is aimed at giving customers more time to sell their existing home.

"We are finding a lot more people willing to look (for homes) since last fall," said Nadia Mekled, senior sales manager for Toll Brothers in Michigan.

Beyond the formal discounts, many sellers are willing to bargain to seal a deal, local real estate agents said.

"Sellers are used to, by now, doing what it takes to move their home," said Claire Williams, a Realtor with Remerica Hometown One in Plymouth.

Still, she expects a drop in home sales at least in the short term because of the end of the federal tax credit.

"I think our job (as Realtors) is to convince potential homebuyers there are still historic prices and low interest rates," Williams said. "And they need to act on that now."

New Housing Starts on the Rise in SE Michigan

AP

New housing starts in southeastern Michigan showed signs of life in January with the highest number of building permits issued since September, according to data released Wednesday by Housing Consultants Inc.

Building permits for single-family homes and other units in the nine counties of southeastern Michigan rose to 211, compared to 85 during the same month a year ago, an increase of 148.2 percent.

The Clarkston-based Housing Consultants tracked a 234 percent in increase in Wayne County to 117 new building permits from just 35 in the same period a year ago. Macomb saw a 240 percent increase to 34 permits from 10. Oakland had a 50 percent improvement to 27 from 18.

That was welcome news for an industry that has been in a tailspin the last three years.

"It simply couldn't have been as bad as last year," said Michael Stoskopf, CEO of the Building Industry Association of Southeastern Michigan. Housing permits have nose-dived for the past three years and the January numbers are still a third of what they were prior to the housing crash.January is the second consecutive month to show larger-than-expected increases in home building, particularly single-family home permits, according to data provided by the trade association.Further improvement is expected. For the six-month period from January to June 2010, the association forecasts a 32 percent increase in the number of single-family home permits to 458, compared with 347 permits issued during the same six-month period one year ago.

The increase can be attributed, in part, to the extension and expansion of the federal home-buyer tax credit program, Stoskopf said. First-time home buyers can get a credit of as much as $8,000 if they close a deal by April 30; those who already own a home may be eligible for up to $6,500.

Additionally, employment and work force levels have leveled off -- meaning the job loss has slowed in recent months -- and housing inventories are shrinking, especially those of foreclosed homes and lower-priced properties.

"The market has been decimated for two years," said Byrne Benson, president of Housing Consultants. "For houses under $200,000, there is no inventory."

Most permits issued last month were for homes in the below-$200,000 price range, Building Industry Association data shows. The next most active market is the $200,000 to $500,000 range.

Housing starts last month improved nationally as well, with single- and multi-family housing starts up 2.8 percent in January compared with December, and up 21.1 percent from a year earlier, according to the latest monthly report by the Commerce Department's U.S. Census Bureau.

Single-family home starts nationwide rose 1.5 percent in January from December, and jumped 35.6 percent from January 2009.

Still, many area builders said Wednesday the market has far from recovered and at least three smaller builders said they had not yet seen an uptick in business.

"You still have to self-finance" building new homes, said James Clarke, president of Robertson Brothers, a builder in Bloomfield Hills who has seen work improve. Robertson Brothers will likely file more new building permits in the next few months than it did in all of last year, Clarke said. Larry Cohen, president of Cohen Homes LLC, said new federal regulations for appraisals are "a mess" and are hindering a rebound. Many builders complain the use of out-of area appraisals -- as allowed under the new law -- is thwarting a recovery because of the appraiser's lack of knowledge of the market translates into lower appraisals that kills deals. "I wouldn't say the recovery has taken a firm hold," Stoskopf said. "The industry has been decimated by job loss and we do not yet see when there will be many jobs returning."

Annual Remodeling Report Finds 4 Best Improvements For Selling Your Home

MSN

House prices are still dropping, so it pays to know which upgrades will deliver the best return when you sell your home. An annual remodeling report finds 4 basic replacements are likely your smartest choice.

Remodeling is a better investment in some years than others. This year is among the worst if you’re hoping to recoup much money when you sell, says a newly released report. Homeowners are getting back just 64%, on average, of a project’s cost, compared with 87% in 2005, according to Remodeling Magazine’s 2009-2010 Cost vs. Value report.

Some projects pay back better than others. You get more bang for the buck putting money into a basement or attic upgrade than adding a wing to the house. Some of the highest-return projects include a deck addition and quick, conservatively priced replacements of old siding, entry door or windows. (If you want a different perspective, personal-finance guru Liz Pulliam Weston calls remodeling “a waste of money.”)

The report compiles responses from about 4,000 members of the National Association of Realtors in 80 cities to survey questions about 33 hypothetical projects. “I think what the real-estate agents are saying is you’re taking a big risk if you’re buying these high-ticket items, because the market is slow. Buyers are looking for utility,” says Sal Alfano, the magazine’s editorial director. “They’re not so wowed these days as they were three or four years ago.”

A retreat from overbuilding
Some contractors are dropping their rates to get work, so it might seem a good moment, if you have the money, to do a big, blow-out addition. And maybe it is, if you can keep the house long enough. But today, a high-end master suite remodel, for example, returns just 56% of the cost, on average, compared with 80% in 2005. 

“You’re not seeing the big 750-square-foot additions being put on the side of a house like you were a few years ago,” says Martin Conneely, owner of Conneely Contracting, in Arlington, Mass. “Our biggest (jobs) right now are maintenance replacements (of windows, doors, siding and roofing), basement renovations and moderately priced upgrades in the kitchen and bath.”

Despite widespread talk of falling labor prices among remodelers, the cost of construction overall hadn’t changed much.  Return on investment (ROI) is dropping because, in a market flooded with foreclosures, even if labor costs are dropping, the price of existing homes is at such a discount that anything newly built can’t compete.

The 22-year-old Cost vs. Value survey makes clear that return on investment depends greatly on where you live. The highest payback is in the Pacific region (Alaska, California, Hawaii, Oregon and Washington). There, although costs are double the next-most-expensive region (the Mid-Atlantic, including New Jersey, New York and home remodeling Pennsylvania), high resale values more than compensate.

Peter Michelson, CEO of Renewal Design-Build in Decatur, Ga., cautions homeowners to be aware that projects described and priced in this report can — and often do — cost considerably more than the amounts given.

ROI is better in the West South Central (Arkansas, Louisiana, Texas, Oklahoma), South Atlantic (Washington, D.C., Delaware, Florida, Georgia, Maryland, the Carolinas, Virginia, West Virginia) and East South Central (Alabama, Kentucky, Mississippi, Tennessee) regions.

Residents of the Mountain states (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico) and New England (Maine, Massachusetts, Connecticut, New Hampshire, Rhode Island, Vermont) enjoy average returns.

It’s hardest to make a buck back on your project in the Middle Atlantic, West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, the Dakotas) and East North Central (Indiana, Michigan, Ohio and Wisconsin) regions.

The math didn’t always come out so poorly. As recently as 2005, few homeowners bothered to figure out if their plans meant overbuilding for the neighborhood, Alfano says. They just commissioned the work they wanted and assumed prices would rise to cover their costs.

They were largely correct until 2006, when payback began shrinking along with the scale of jobs that homeowners were undertaking. “The projects that were evaluated as having the most return were not kitchens and baths so much anymore. All of a sudden it was these exterior replacements: roofing, siding and windows,” Alfano says.

It was the beginning of the end of the housing boom. “Today, resale value has come to the forefront. People are much more conscious of building for the neighborhood, and they’re worried about their mortgage rates and their jobs.”

Basic replacements rule
As a group, low-cost replacements — new siding, windows, doors and roofing — deliver the best bang for the buck now, a considerably better payback than from a two-story remodel or a kitchen remodel.

Given great improvements in materials, you can replace your inefficient 10- or 15-year-old products with highly efficient ones for a decent return when you sell. In addition, the improvements help you save on heating and cooling bills. Replacing leaky windows with highly efficient newer ones is a good example. The technology behind the glass and frames has so improved that you’re tightening up your home’s weatherproofing in the process. You get more comfort and, from the real-estate agent’s point of view, new windows show off your house from the street.

Replacement projects included in the Cost vs. Value survey all cost less than $20,000 and most cost considerably less. They instantly enhance curb appeal, boosting a home’s marketability, and they require little maintenance once installed - all of which are better prospects than with a home addition. A bonus: Most of these replacements qualify for a federal tax credit for energy efficiency (not included in Remodeling Magazine’s ROI calculations).

1. Replace the front door.

    * The absolute best return on the money of any of the projects surveyed — 129% of cost — is gained by replacing a beat-up front door with a $1,200 steel-shell door filled with foam insulation.
    * A new fiberglass door (more expensive, at $3,490) returns less, about 65%. (Fiberglass is the new chic building material because it’s rugged and durable, can be painted and will mimic almost any wood. Unlike wood, it doesn’t crack, warp or shrink and needs zero maintenance.)
    * Spend about $7,500 on an entire new entrance, including a widened opening, a solid-core wood door and high-end glass, new lighting and better locks, and you’ll recoup 69%, on average.

2. Replace home siding

    * Replacing old siding with a durable fiber-cement product ($13,287) recoups about 84% at resale.
    * Use vinyl siding ($10,607) to get an 80% return.
    * Foam-backed vinyl ($13,022) costs more and earns back less — roughly 79% — but it is much more efficient at insulating a home.

3. Replace windows. Three of the four window-replacement projects considered in the survey pay back about 77%:

    * Wood-trimmed windows ($11,700).
    * Lower-end vinyl windows ($10,728).
    * Windows trimmed in higher-end vinyl ($13,862).
    * The fourth project, higher-end wood-replacement windows ($17,816), has a return of about 72%. Fiberglass windows weren’t included in the study.

Replace the roofing: Spend $19,731 on new fiberglass asphalt shingles and you’re likely to recoup about 67% of the cost.

    * A higher-end roof replacement using standing-seam metal ($37,359) pays back about 61% of the cost, agents told the survey.

Additions aren’t cost-effective
Except for a new deck, which pays back nicely, adding to a home’s footprint brings a poor return these days.

A new deck
    * Wood is high-maintenance, but homebuyers love it: A new wood deck ($10,634) returns 81%.
    * New outdoor decks of midrange composite planks ($15,373) return around 71% of the cost at resale.
    * A higher-grade composite ($37,745) brings an ROI of about 61%.

Other additions
    * Adding a 200-square-foot sunroom ($73,167) recoups 51%. [Find a Sunroom Builder in Grand Rapids Michigan]
    * A high-end ($225,995) master suite project, adding 640 square feet to the house, including a bath with walk-in shower and stone walls, brings a 56% return.
    * A less ambitious, less costly ($103,696), 640-square-foot master suite addition including whirlpool bath and ceramic tile recoups 65%.
    * A garage addition ($87,230) earns back about 56%.
    * A high-end bathroom addition ($75,812) earns about 58% at resale.
    * Adding a midrange, 6-by-8-foot full bath ($39,046) recoups about 60%.
    * Add a midrange two-story wing ($156,309) to the house, including 24-by-16-foot first-floor family room and second-floor bedroom and full bath, for a return of about 69%.
    * A midrange family room addition ($82,756) returns around 65% of the cost.
    * Adding a sunroom or home office were the projects that yielded the least payback, presumably because these special-purpose rooms appeal to fewer buyers and are in less demand.

Best use of the money (besides replacements)
Upgrading existing space, such as a bathroom remodel, is the best bet for recouping cost. It makes sense: Pouring a foundation, framing a structure and bringing in electricity and plumbing are among the most expensive aspects of a building project. When you can largely skip these steps and increase your usable space, the payback is richer:

    * An attic conversion, including a 15-by-15-foot bedroom with dormer and a 5-by-7-foot bath with shower ($49,346) returns comparative gold: 83% return, on average. Agents in several cities said this job would return more than 100%.
    * A basement ($62,067) remodel —a 20-by-30-foot entertainment room and 5-by-8-foot full bath — recoups about 75% of its cost.
    * A midrange 5-by-7-foot bathroom remodel ($16,142) with standard fixtures and trim has a 71% ROI.
    * Expanding that bathroom to 100 square feet ($52,295), including moving plumbing and wiring and adding higher-end cabinets and fixtures, brings a 62% ROI.

Kitchens and baths: Scaled back but ever popular
High-end kitchens and baths are fading in popularity, replaced by “very practical things,” Michelson says. “The $400,000 and $500,000 jobs are few and far between. The jobs between $50,000 and $200,000, we’re doing lots of those.”

Bath and kitchen remodeling hasn’t stopped, since these projects maximize the enjoyment of the most-used spaces in a home. But “people are definitely being smarter with their money,” Conneely says. “For instance, a $75,000 remodel five years ago? That same client would today spend $50,000.” People who blithely bought the best of everything now pursue the same look by choosing materials judiciously.

    * A minor kitchen upgrade ($21,411) installing new cabinet fronts, laminate counters and other cosmetic improvements is a decent investment, at 78% ROI.
    * A major kitchen remodel ($57,215) using midrange materials — semi-custom cabinets and laminate counters — pays back about 72%.
    * A high-end major kitchen remodel ($111,794) with top-of-the-line cherry cabinets, stone counters, glass backsplash and expensive, built-in appliances, pays back just 63%.

Housing More Affordable For The "Move-Up" Buyer

Associated Press Story

Welcome to Grayling, 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, 21/2 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.

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.

These buyers often need to sell a home before moving up, a dicey proposition during the housing recession. But the first-time homebuyer tax credit of up to $8,000 has spurred sales of homes in the lowest price ranges, allowing sellers to become "move-up" buyers. Buyers are getting more for their money because of low prices and attractive mortgage rates.

"This represents a unique opportunity for move-up buyers to get back into the market," said Jim Gillespie, president and CEO of Coldwell Banker Real Estate.

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.

Joining Grayling in the top five least expensive markets were Akron, Ohio, with an average price of $121,885; Fayetteville, N.C. ($130,875); Canton, Ohio ($131,867); and Detroit ($132,000).

On the high end, La Jolla residents are paying a premium for it's proximity to a big city, easy access to the Pacific Ocean and sunny weather. Other California markets like Beverly Hills and Palo Alto have similar qualities, and also are in the study's top 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 beach-front living and for having a real sense of community," said Rick Hoffman, CEO of Coldwell Banker San Diego. "It still has a little bit of a small town feel."

California claimed eight of the top 10 most expensive U.S. housing markets. Completing the top five were Beverly Hills. ($1,981,750); Greenwich, Conn. ($1,519,250); Palo Alto ($1,489,726) and Santa Monica, Calif. ($1,460,912).

The Golden State also had the largest difference between its most and least expensive markets. Lancaster, Calif., registered an average sales price of $165,205, more than $1.9 million lower than La Jolla.

Oklahoma had the smallest difference, with about $9,400 separating Oklahoma City ($164,250) and Tulsa ($154,800).

And, for buyers wondering what a 2,200-square-foot house with four bedrooms, 21/2 baths and a garage would cost overseas, Coldwell Banker surveyed 57 markets in 29 countries.

The most expensive market is the Asian metropolis of Singapore, where the sample home averages $1.9 million. The least expensive is Salinas, Ecuador, which sits on the Pacific coast. The average price of the sample home in Salinas is about $69,000.