Chester County Real Estate Statistics for October 2009

Posted on: 11-3-2009 Posted in: Chester County, Market Update, Monthly Update

Note to readers: I post my stats later than other real estate companies and agents because I want the most accurate numbers available…and this makes them worth waiting for! Other agents simply copy and paste graphs that they get from other sources and offer no opinions to the marketplace conditions. I track data in house and compare the market on a whole to what I produce internally in order to produce an opinion of the data and give my thoughts of what the local market is experiencing from my view as a top Chester County Real Estate Agent.

Market Statistics Graphs for October 2009

Overall Market Summary Report

Area	# Of Sales	% Change Year	$ Volume	% Change Year	Average SOLD Price	% Change Year	DOM	% Change Year
Downingtown	71	+144%	$22.6 Million	+89%	$318,641	-23%	70	-21%
West Chester	87	+29%	$29 Million	-10.2%	$330,609	-16.1%	62	-19.5%
Great Valley	32	+23%	$10.6 Million	-9%	$332,784	-25.6%	79	-14.2%
Coatesville	51	+13.3%	$9.8 Million	-3%	$193,908	-15%	79	-4.9%
Octorara	12	+71.4%	$2.5 Million	+78.5%	$209,614	+.004%	102	+39.7%
Chester County	436	+30%	$131 Million	+10%	$301,256	-15.5%	78	-1.3%

Chris’s Assessment

Sellers: This is actually a fantastic time of year to sell in Chester County, despite what common knowledge may say. The reason is because you have the least amount of competition than at any other time of year and the buyers that are looking are serious buyers. The good news is that the overall supply has taken a dramatic dip in the last month. In fact, it is at the lowest level for this time of year since 2005. That’s a good sign.

Another good sign is that the demand is up to, almost, 2006 levels. This is a big jump over last year. The bad news is that the average sales price is down, and down in a big way, almost 16% from the same time last year. But, don’t let this alarm you too much. I believe that, when the full reports come out, they will show that the majority of the activity in the last month was largely first time home buyers that were looking to take advantage of the tax credit. Overall this dramatic uptick in demand and drop in supply will probably level out, unless the government passes an extension to the current tax credit. That certainly seems possible and they may even expand it to include options for those that currently own a home.

As I said last month, this all underscores the need to have a real estate expert on your side, making sure you take the RIGHT steps in this difficult market. Most likely, if you don’t HAVE to sell, then you probably shouldn’t. To find out what your home is worth today and how to get it sold quickly in this market, please contact me.

Buyers: I feel that I can confidently say that there has not been a better time to buy a home in recent history. I say this because of the fact that home prices have come down and mortgage rates are still at a historical low. If you are in a position to buy a home, you are in a position of power. It is still a “Buyers Market” and buyers have a majority of the power. That doesn’t mean that you will get a home in Chester County for 50 Cents on the dollar. That ain’t happenin’. But you can get some fantastic deals.

I will say that it is still too early to tell if the market has “hit bottom” yet, but the fact that demand was up and supply is down is a good sign. It just depends on whether the trends continue that way or not. I highly recommend that if you are wondering if you are in a position to buy a home and maybe have a lot of questions or need help and advice that you contact me immediately. It would be my pleasure to help you.

Closed Sales (Demand)

Starting in June, The demand has been increasing over what it was last year, and in october, it followed the same trend line as 2006.
My best prediction is that november will also see an above average amount of closed sales due to the tax credit.

Active Listings (Supply)

Good news as the supply has taken a dramatic decline.
If this trend continues, it may be a sign that the overall market is improving.

Average Sold Price

This graph is effected by the first two of Supply and Demand. When supply is lower and demand is higher, prices go up. When demand is low and supply is high, prices go down. Economics 101. Because the demand the first half of the year was low we can see that the prices were tracking well under the 2008 levels. June, July and August saw increased level of demand, therefore the prices went up. Here are some facts to note:

The majority of activity in August, September and October has been increasingly first time home buyers.
The heavy emphasis on First Time Home buyers (Price range usually $300k and under) is what is causing the average sale price to drop so dramatically
This does NOT mean that your home’s value has dropped in a similar fashion

Want specific data pertaining to your neighborhood? It would be my pleasure to help you. Just contact me to get the details!