Anh Pham

Case Study 1
1

Affordable Home Real Estate

In late 1995, a national study announced that Eau Claire, Wisconsin, was the
safest place to live. Since then, housing development projects have been springing up all
around Eau Claire. Six housing development projects are currently dominating the Eau
Claire market: Woodland Hills, Granite Mound, Creek Side Huntington, East River
Community, Forest Green, and Eau Claire South. These six projects each started with 100
homes, have sold all of them, and are currently developing phase 2.
A spreadsheet file that contains information concerning each of the sales for the
first 600 homes from the Wisconsin Real Estate Association has been obtained to analyze
the data to determine which project our firm will focus on in this phase 2. All the data
from phase 1 have been categorized into six projects:
#23 Woodland Hills
#47 Granite Mound
#61 Creek Side Huntington
#78 East River Community
#92 Forest Green
#97 Eau Claire South

PROJECT
#
AVG.ASK
PRICE
AVG.SELL
PRICE
LIST
DATE
SALE
DATE
AVG.SQ.
FT.
#
BATH.
#
BDRMS
23 $83,916.70 $82,419.50 3/15/05 6/3/05 1558.50 2.26 3.58
47 $82,974.55 $80,499.70 4/25/05 7/10/05 1509.09 2.23 3.71
61 $83,519.50 $82,182.80 2/15/05 5/18/05 1556.60 2.21 3.45
78 $82,897.90 $80,437.90 7/29/05 10/23/05 1509.52 2.18 3.66
92 $84,709.60 $82,302.60 4/10/05 7/12/05 1555.10 2.15 3.48
97 $88,042.22 $85,624.24 3/24/05 7/7/05 1611.31 2.14 3.55

The table above includes the average asking price, average selling price, average
square feet, average number of bathrooms and bedrooms for each project. From this
table, the data show that Project 97 has the highest average asking price and also the
highest average selling price, which could be because they offer the largest average
square feet per lot. Project 78 offers the lowest asking price and slightly the lowest selling
price. Project 23 offers more bathrooms and bedrooms per lot, and enjoys smaller
average gap between asking price and selling price. Project 47s lots have, in average, the
smallest square feet per lot.
To better utilize the information given in the spreadsheet and make the best
possible decision that will benefit our firm in identifying the most profitable project for
phase 2, another chart is prepared with numbers concerning how many days in average it
takes to sell a lot, the average difference between asking prices and selling prices, and the
actual price per square feet sold for each projects.
PROJECT # DAYS TO SELL ASK-SELL PRICE PER SIZE
23 79.34 $1,497.20 $52.88
47 76.12 $2,474.85 $53.34
61 92.10 $1,336.70 $52.80
78 86.24 $2,460.00 $53.29
92 93.39 $2,407.00 $52.92
97 104.74 $2,417.98 $53.14

Under DAYS TO SELL column, Project 47 takes the shortest time in average to
sell a lot (76 days), while Project 97 takes the longest (104 days). Looking at the average
difference between asking price and selling price of each project, one may say Project 47
is not as profitable as other projects, but regarding the price per size in the last column,
Project 47 enjoys the most revenue for each square foot of its lots. Project 23 enjoys the
second smallest gap between asking price and selling price, but for each square foot in
the lot, it makes the second least revenue. In both criteria, Project 62 takes the last place
of the six projects.
I recommend focusing on Project 47 - Granite Mound to best benefit our real
estate firm. It has the smallest size in average and have larger gap between asking and
selling price. However, its lots sell the fastest in average among 600 lots 76 days. This
Anh Pham
Case Study 1
3

indicates a faster return on investment for our firm. Also, with Project 47, our firm will
profit the most out of every square foot we invest, at $53.34. Granite Mound also offers
homebuyers, in average, the most numbers of bathrooms and bedrooms in each lot.