Your house's architectural style may help determine how fast its resale value appreciates, one veteral analyst of local estate price has concluded.
In a report release this week to his subscribers, Alfred W. Jarchow, a Rockville property appraiser, says that since 1971, prices of colonial, Tudor, French, provincial and other "traditionally" two-story styles of houses in Montgomery County have been rising faster than other types of architecture.
Cape Cods are next, followed by single-story ramblers, split levels and bi-levels and town houses and condominiums of all styles, records of the Montgomery County multiple listing service show.
Jarchor's data, based on a month-by-month statistical analysis of thousands of resale transactions over the past eight years, reveals that:
The most expensive category of houses in the area-those with European or colonial styling-have increased in resale value an average of 144 percent since 1971, compared with a county-wide average of 131 pecent. (Colonials have long been the Washington area's favorite.) Condomimiums and town houses, on the other hand, have gone up about 117 percent in the same period. All of these figures are relatively high by national standards, but the gap between the high-density condo and town house units and Montgomery County's detached units is significant.
Cape Cods, which for a period last year had higher resale price increases than traditional styles, have appreciated an average of 136 percent since 1971. These houses tend to be more moderately priced than other styles here and now sell for a median of $65,000 a year ago. Many of them are concentrated in the older, close-in sections of the county.
One-story ramblers or ranch style houses-ablut one out of four of the county's dwellings have outperformed the Montgomery average by a slight margin. They average $71,250 in resale value in 1978, up from $65,000 the year before, and have gained 135 percent in value on the average since 1971.
Split-levels and bi-levels gained about a percentage point less than ramblers over the same period, but on the average are priced higher. These range from the upper $70,000 to the $90,000s on a county-wide basis.
Town houses and condominiums now account for a fourth of the resale market, but have gained about 20 percent less on a relative percentage basis than the detached units. To illustrate this difference, Jarchow says that a typical split-foyer rambler purchased in July 1971 for $30,000 would have sold in February 1979 for $69,300-a 131 percent gain. A typical town house bought in the same month for the same price would have sold for about $61,100 in February.
"The main reason forthe less favorable market for resale of town houses has been the greater volume of builder competition in the town house market than in that ofdetached homes," Jarchow suggested.
The market condition for these houses, however, has been inproving, Jarchow added.
"The median town houseprice in the past year has increased from $55,800 to $60,400," he said. town houses still offer the most living space for the dollar. The condominium market also has improved from what it was a year ago. Twelve months ago the median price of condo units resold in Montgomery was $44,750. It has since risen to $49,150."
The Jarchow report intentionally omits neighbourhood influences on price movements in an effort to isolatethe impact of home style on resale value. Neighborhood and other locational factors have crucial impacts on the ranges of price performance within these architectural categories, however.
Jarchow's regular analyses of neighbourhood and subdivision data show, for example, that closer-in neighborhoods such as Chevy Chase and Bethesda, whether dominated by colonials, contemporary bi-levels or luxury town houses, tend to do better in overall capital growth than neighborhoods located farther out with comparable architectural styles.
In fact, the distance-from-the-city factor is probably a growing one in suburban price movements, as people seek to be closer to an increasingly dynamic economic and cultural center. Most of these older neighborhoods adjacent to the city are traditional in architectural style. CAPTION: Picture, no caption