Perception of Real Estate Prices in Sync with Reality? Not in Miami!

Perception of Real Estate Prices in Sync with Reality? Not in Miami!

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How affordable is real estate in your city, really? If you’re the sort of person that likes to rely on the ‘wisdom of the crowds’, Google’s autocomplete feature comes in handy for you. By typing into Google the phrase “why is [Your City] real estate so ….”, Google autocompletes the question and instantly tells you if it’s cheap or expensive based on what most people have searched before.

But are people’s perceptions of home prices in sync with reality?

We’ve put them to test.We’ve asked our sister company PropertyShark to crunch home asking prices for 20 of the largest cities in the country and then we compared them with what Google’s autocomplete gives us. The results show that people perceive a city to be cheap when median home prices are less than $240,000, which is fairly close to the national average of $188,000.

Results were very consistent, with one big exception – Miami. People consider Miami real estate to be cheap, although at $409,000 home prices in Miami are well over those in  Denver, CO, Austin, TX or Seattle, WA, which are regarded as expensive cities.

Find out from the map below how people perceive real estate markets in several cities across the US.

Map of real estate prices according to Google

Is real estate in Miami (really so) cheap now?

Remember that Google’s autocomplete suggestions are based on the popularity of search terms. If Google’s autocomplete suggestion reads “why is real estate in Miami so cheap”, this may mean that the majority of people querying on Google the cost of homes in Miami believe they are cheap.

miami real estate

However, when looking at the numbers crunched by PropertyShark analysts, we found out that the median home asking price in Miami is $409,000. In fact, a recent study released by Data Wizard Jonathan Miller & Douglas Elliman shows that home prices in Miami are currently at their peak since 2008.

In case you’re wondering what $400,000 will buy you in this city, we’ve sampled the market for you and found this townhouse at 3048 SW 27 Av, Miami, Miami-Dade County.

Asking price: $399,000

Asking price: $399,000

The proof Americans are right about real estate

Based on the sample we used, the map shows that Americans consider real estate prices in 11 of these cities to be cheap, while the other 9 are considered expensive. Take a look at the table below to see how well the perceptions match the median asking prices.

The red color means the real estate in that city is considered expensive, while the green color means it’s considered cheap.

Source: PropertyShark

Source: PropertyShark

Wondering what’s available at both ends of the markets we’ve looked at?

In San Francisco, a median price of $850,000 will buy you this 2 bedroom single family home at 378 Mount Vernon Ave, which sits on 1,210 sqft of living space.

378 Mount Vernon Ave, San Francisco

Asking price: $799,000

In Cleveland, a median of only $59,975 will make somebody the owner of this 3 bedroom house at 10618 Thrush Ave, Cuyahoga County, which just had a price cut of $5K:

10618 Thrush Ave, Cleveland OH

Asking price: $59,900

 

Do you live in Miami or any of these cities? Tell us what you think about these results!

 

 

 

 

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