Strong schools and the impact on property values
July 28th, 2009 | By: Christine Kipp
The value of a strong school district should not be underestimated. According to the National Association of Realtors, homes in highly supported school districts sell faster and at higher prices.
The S & P Case Shiller Index estimates that a house in a top school district will sell for at least 10 percent more than a similar house in a lower-rated school district. The boundary for the Issaquah School District and Lake Washington School District (LKW) corresponds to the zip codes 98075 (Issaquah) and 98074 (LKW). The average price in Issaquah is $565k while LKW its $465k. That’s an 18 percent difference in value between two neighboring communities each offering a similar inventory of homes.
I am of the opinion that the residents of a community have an enormous impact when it comes to creating and maintaining a strong district. From innovative programs to quality teacher retention to responsive leadership, community residents can make a huge difference. It is all a function of the type of home buyers who come to the region: they are educated, hold high expectations, and are willing to step in and make a difference. Where public funding is insufficient, organizations like the Issaquah School Foundation step in. Levies and bonds should pass reasonably easily because an investment in the schools is a good investment in the largest asset most people own, their home. This applies to those who don’t have children in the district, as well.
Home prices in top notch school districts take less of a hit when the chips are down, too. The Issaquah District is generally preferred by many of our corporate relocation clients. Interestingly, Issaquah district property values have dropped by 5 percent less than LKW, and by a greater percentage as compared to nearby Snoqualmie Valley and Tahoma where supportive resources and test scores are a little lower
Understanding the differences in market value, trends and client preferences is something we track all the time. The Kipp Report provides more detailed information about market changes in our area by property type and over time. Visit www.christinekipp.com to see more information.
