Chester County Real Estate Statistics: August 2010
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The Chris & Caleb Team Assessment: “Rollercoaster!! Oooh, ooh, ooh!”
In July we saw the closed sales catch up with the sorrowful stats for pending sales. It is very safe to say that we are going through a “Cleansing” of sorts. So while the supply is not dropping, the number of ready, willing and able buyers certainly were “flushed out” by the tax credit. Let’s take a closer look…
PENDINGS:
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Pendings indicate future closed sales and as such, we can expect the number of future closed sales to take, yet another, hit in the next coming months as a result of August’s pending numbers. While it looks bad, you must keep in mind that pending sales traditionally take a dip in August. It is the height of vacation season and everyone is getting ready for school, so buying a home is not the first thing on everyone’s mind. Next month, if we follow trends, we will see the pending number inch back up. Conclusion – looks like the market is still in a stall.
CLOSED SALES (DEMAND):
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The closed sales (AKA Demand) is mirroring, very closely, the line for Pending Sales. If this continues, we can very safely say that closed sales, beyond October will be very dismal, as the current trend for this year is off by more than 30%. If you are thinking of selling your home, do it now, before the end of October.
ACTIVE LISTINGS (SUPPLY):
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It looks like the Supply of homes for sale in Chester county is at about the same level as last month. As you can see, this follows the 5 year trend, which is indicated by the Red line. We believe, based on 30% less sales, that inventory will certainly stay at unusually elevated ranges through the remainder of the year, into next year.
AVERAGE SOLD PRICE:
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Due to VERY, VERY low mortgage rates, higher priced homes are now selling. Earlier in the year, many of the homes sold were most likely sold to “First time home buyers”, (Tax credit). Now it appears that those looking at higher priced homes ($350k +) are jumping on their chance to purchase a home at a great price and get the low interest rates. That is really what this chart indicates.
What Does This Mean??
OVERALL: The big problem in the market right now is two fold – First, confidence of the consumer and unemployment. Many people are very unsure about their employment and income situation or are out of a job all together. That doesn’t usually get people excited to buy a home when they are worried about whether they will get their next paycheck or not. Second is what is the distressed property inventory. When someone buys a home that is a foreclosure or short sale, there is no resulting sale from a home owner moving. That is a big issue, as that helps the chain to continue. That will be a major factor moving forward for the next three, maybe even five years, as foreclosures and short sales are not decreasing in their supply.
For Sellers: More of the same – If you don’t have to sell, you probably shouldn’t, UNLESS you are thinking of buying a bigger home and have lived in your current home for three years or more. In that case, there may be a very good chance that you could come out on the positive side for making that move. If you are thinking of doing that, please let us know and we can help you determine if it is worth it. If you must sell, choose your agent wisely. No matter your situation, there are only a few (really one team, us. . . ) agents out there that are doing a lot of business and that know this market well. Of course we want the chance to show you why more than 35 clients choose us since March of this year and why you should choose us. But it could mean the difference of attaining your dream or making a drastic mistake.
For Buyers: Interest rates continue to stay historically low. They can’t stay here forever. If inflation starts to happen, then rates will rise. So if you are ready, willing and able, there has never been a better time to purchase in the last 50+ years!! You have more choice than ever, prices are fantastic and you will save a TON of money with the interest rates. Call us to get your road map and get started!
Next Steps:
- What Is My Home Worth? Want to get a good idea of what your home is worth? Complete my Home Value Survey and find out what your Chester County Home is worth. . .
- What Is That Home Selling For? “Stop the car, honey … look at that house. I wonder what it’s selling for” Does this ever happen to you? Ever wonder what that house is selling for? Search and view all homes for sale in the Chester County area
- What do I need to know before I sell? Typically when a home does not sell, there is one reason…and it isn’t price. Please contact me to discuss what you need to know before you sell!
BTW, We do have very specific data for every price range and area of town. Want specific data pertaining to your neighborhood or your own home? We have it! Please let me know if you would like a neighborhood-specific analysis by contacting me!
