A different way to determine value

There are some surprises in the recent 2004 Home Price Comparison Index (HPCI) recently announced by Coldwell Banker Northwest Group. The HPCI is a nationwide survey with more than 300 Coldwell Banker offices participating.

Most market activity is determined by the average price of all homes sold each month in an area. First-time buyer homes are joined by mansions and other dwellings under this system of averaging all area prices.

With the HPCI methodology, however, each office in every major real estate market surveys the average price of a single-family home with approximately 2,200 square feet, 2.5 bathrooms, four bedrooms, a family room and a double-car garage.

The home would typically be located in an area where a middle-management corporate employee would be transferred to or from.

With this system, Spokane had a value of $193,039 for this home in 2003, and $207,321 so far this year, which reflects a 7.4 percent increase.

And, this is the surprise, the same home in the most expensive housing market in the United States — La Jolla, Calif. — would cost approximately $1.3 million.

Closer to home, according to the index, a $200,000 home in Spokane would cost $466,000 in Bellevue; $252,000 in Portland; or $187,000 in Bozeman, Mont.