By Woody Fincham, SRA
When looking at residential values in a given market region, school districts will generally play a large role in what consumers are willing to pay for a home. The Wall Street Journal published an article in 2008 about this, and stated, “Even for buyers and owners who don’t have school-age children, good schools can ensure consistent demand for properties — and strong prices. Taxes are also a big factor when talking about schools and home prices because in many states property taxes fund education (Peck, 2008).”
Brendon DeSimone, a well-recognized realtor recently wrote in a blog on Zillow blog that:
1. You’ll pay more to live in a good school district
2. A good school district might protect you from the real estate market’s ups and downs
3. Though it may cost more to buy near a good school, it will be good for resale (DeSimone, 2013)
So how does that apply to the market here in Charlottesville? We are fortunate to have six school districts here that are all accredited and test well per state metrics. I ran some basic metrics on an array o f sold properties from 2013. All sales occurred in 2013, all are detached homes.
You will notice that Venable, Burnley-Moran and Jackson-Via lead the city with most sales per school with 72, 79 and 72, respectively. The chart is arrayed from highest price per square foot to least (Above grade finished). Venable leads the pack in price per square foot at $225.48/SqFt.
So how does this data speak to the local real estate agents? Does this reflect your understanding of the school district relationship to sales price? Are there any inherent biases that may influence this method of data metrics?
I would love to hear any comments related to this topic. I would also be open to looking at other unique ways to analyze residential data within the city markets, if you have a thought of two of more data points that are worth looking at, please suggest them. I will happily see how that data reacts when I run it through some charts.
Remember if you need any residential valuation services please give me an email: firstname.lastname@example.org.
DeSimone, B. (2013, October 4). 3 Reasons to Consider School Districts When Buying a Home. Retrieved from Zillow Blog: http://www.zillow.com/blog/2013-10-04/3-reasons-to-consider-school-districts-when-buying-a-home/
Peck, E. (2008, February 20). Wall Street Journal. Retrieved from Buying a New Home: How Important Is the School District?: http://blogs.wsj.com/developments/2008/02/20/buying-a-new-home-how-important-is-the-school-district/