Chester County Real Estate Statistics: February 2010
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Chris’s Assessment
First, let me point out something that is somewhat obvious… I have changed my charts a bit, hopefully for the better. I’d love your opinion! I changed them to make them simpler. Now what you are looking at is the line for the current year, last year, and then the 5 year trend line. Previously, there was too much going on. I hope this is better.
For Seller’s: I’ve said it before, and I’ll say it again: If you are planning on selling your home in the next 24 months, for whatever reason, NOW is the time to do it. With the tax credit in play, we are going to see more activity between now and the end of April as, I believe, we will see in a long time. “Don’t worry about it, the government will extend the tax credit. . . . right?” Highly doubtful. For many reasons. Even without the tax credit, the chart showing the average sale price shows that between March and July is when you will get the highest price for your home. Even the pending chart proves this as the majority of the activity in the market is done between March and July.
Is now the time to sell? I talk with home owners on a daily basis who are asking this specific question. A general rule to follow when determining if now is a good time to sell:
- Move-up: if you are selling a home and looking to ‘move-up’ or buy a more expensive home, the very best time to do this is when the market is down (like now)
- Move-down: if you are selling a home and looking to ‘move-down’ or buy a less expensive home, the very best time to do this is when the market is hot (not now)
Need to sell? We love helping homeowners in the Chester County area prepare to sell their home. Contact us now to get our list of the 5 most common ways that Home Seller’s leave money on the table. We’d be happy to help you get the most for your home.
For BUYERS: It’s simple, I’ll say it again:
- Home prices are low
- Interest rates remain low
- you get $8000 for buying a home as a first time buyer, or $6500 if you currently own a home.
Right now, as a buyer, your purchasing power is at a high point. If you have some cash set aside and you qualify for a good mortgage, then you have the power to buy. That puts you in a VERY good position. I highly recommend you take steps to become a home owner. If that is you, please contact me, as I can help you put together a plan to get there.
Active Listings (Supply)
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- Seasonally, the increase in supply is fully expected
- It is at a significantly higher increase than usual and over last year.
- The rate at which it is increasing is a bit concerning. What will be very telling is if the rate of increase continues.
- If demand were keeping up with supply, this would be a good sign, but it is not. Not a great sign.
Sales Closed by Month (Demand)
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- Demand is down, and I don’t take that as a good sign. I thought initially maybe it was due to all the snow, and that could be, but these are homes that went pending 40 – 60 days before. The snow wasn’t in effe then.
- Last year at this time the demand had increased over January, and the fact that february’s number is going against the trend is not a good sign.
- Next months pending number will be a very telling sign as it sets the stage for the three best months in real estate sales in Chester County
Pending Homes Sales by Month (Intended Demand)
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- Again, another number that is bucking the trend and it’s not a great sign. Unlike the previous chart, this WAS effected by the snow, as there were several weekends that kept people inside.
- As said, the pending numbers for March will be very important. Seasonally, those numbers jump way up. Let’s see what happens. . .
Average Sale Price
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- One “happy fact” from this month is the fact that the average sale price is right in line with the 5 year trend (bright red line).
- This is mostly due to the fact that higher end/priced homes have been moving the last couple of months, and the first time home buyer market has cooled of, which has pushed that average back up.
- Due to the “Tax Credit Effect” we will probably see that average sales price drop over the next several months. This is not an indication of value, just sale price.
Offers of Help
- 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!
