IS THE SUMMER HEAT MELTING THE MARKET???
In short – no, especially since it hasn’t been that hot around here, weather wise. However, the market has continued to be very strong through July in record breaking ways. Let’s take a look a the details.
DEMAND: I think someone forgot to tell everyone that the month of July is supposed to be a slower month for real estate in Chester County because July was barely any slower than June, which is crazy. It seems that a lot of folks that couldn’t find a home previously, finally did find a home in may or early june and ended up settling in July. It was VERY busy. In fact, it was a record breaking July for both our team and Keller Williams Exton. I fully expect August to be a good 20% slower than July and June, as folks have taken vacations and the summer slow has officially caught up.
SUPPLY AND INVENTORY ACCUMULATION: Supply and inventory accumulation continue to hold at healthy levels, just above 6 months of inventory. As said in previous months, this is neither a buyer’s market, nor a seller’s market. However, keep in mind, that this applies to the overall market in Chester county. If you are in the Downingtown, West Chester or Great Valley markets, it’s likely it’s a pretty solid Seller’s Market. Call us to find out.
SOLD TO LIST RATIO: This has dipped back into the 95% range, which is about a 1% dip from previous 3 or so months. This is simply a reflection the season and we expect to see this ratio continue to drop as much as 2% as we head into the fall until we hit the January timeframe. This number is a good indicator of the market and where it may be heading.
RATES: Right now rates for conventional loans are steady around 4.25% and FHA could be as low as 3.75%, but it all depends on when you catch them. This is helping to continue to convince buyers on the fence to go ahead and make the step to become home owners. It’s my opinion that if rates head north too much, it will definitely stall the market as there are many folks out there who can just about afford the “Chester County Lifestyle” and if the rate goes up, they won’t be able to afford it. We will see what happens.
CONCLUSION: The market continues to be healthy, even through the seasonal break. Last fall was a very active market, and signs are pointing to the same this year. If that proves to be accurate, there are more multiple offers on the horizon as buyers get done their summer fun and jump back on the purchase train.