Chester County Real Estate Statistics: June 2010

Posted on: 07-7-2010 Posted in: Buyers, Chester County, Market Update, Monthly Update

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The Chris & Caleb Team Assessment

Depending on whether your outlook is the “glass half full or empty”, the stats are either going to excite you or scare you. Let’s discuss what the stats are telling us…

PENDINGS: June was another “slow” month. Pendings were down at an extremely low point around the 300 mark. Typically pendings are between 450 and 550. Why the extreme drop? Simple – we said it last month and it’s the same again – the Tax Credit. The tax credit pulled many buyers from the future and enticed them to buy now instead of later. We expect activity to be lower than usual possibly through September when we see a bump in activity before the winter hibernation. The only way that these numbers can go is up. We expect them to climb slightly higher every month through the rest of the year, as there are no great incentives for people to run out and buy a home.

CLOSED SALES: Closed sales in June were right in line with the 5 year trend which was pushed higher by the tax credit. June was the last month that the tax credit will have an effect on closed sales, as there is typically at 45-60 day lag time between pending sales and closed sales. We predict we will see closed sales drop around 350 mark in July. This number again is unusually low, but with the last two months of pending sales being at record lows, there is little chance that closed sales will follow the 5 year trend or even last years numbers. It’s like we are in the slow months of December and January, where there pending sales are typically around the 300 mark and the subsequent months for closed sales are also around that level. The next two months will be a very telling as to how the fall market will shape up. If there is little showing activity, then we know that sales will continue to be low.

ACTIVE LISTINGS/SUPPLY: This number is one of those “scary” numbers. As you can see, inventory is at it’s highest level in the last 10 years. With demand being down and supply being up, prices have only one way to go and that is down. The gap between the supply and demand is pretty extreme which is concerning. However, the increase in the number of homes for sale could have been pushed by the tax credit. We’d really like to see the gap between supply and demand decrease of the next several months.

AVERAGE SOLD PRICE: The average sold price for a home sold in Chester County in June of 2010 was about $360,000. This number continues to follow a mix of the 5 year trend and 2009. This number is really more of an indication of what price range the activity is happening. For instance, in October of 2009, there as a heavy emphasis on the lower price ranges due to the looming end of the first tax credit. Of course, it was extended just before the expiration in November.

What Does This Mean?

For Seller’s: If you are considering or are selling a home in Chester County these numbers can be concerning. It means that the overall value has and will be declining. The Chris & Caleb team have been warning our clients of this for the last 6 months. It was very apparent that there would be a lull in activity following the end of the Tax Credit. But that was then, what do you do now? If you are considering selling your home but don’t think you can get enough for it, please contact us. We can get you the insight and advice you need to make the best decision possible. We expect the market to be “depressed” for another several years, possibly as many as 4 or 5. But that also means that what you are going to buy will be “on sale” as well. You may make out better now, than you would in several years. But to know that for sure, let us get you the facts and information you need to make that educated decision.

For Buyer’s: With interest rates being historically low at or around 4.7%, you continue to have a tremendous opportunity in front of you. Seller’s who need to sell are willing to give you a great deal, which will save you money. Combine that with the interest rates and you have a huge win. If you are a ready, willing and able buyer, you have tremendous power in the current market. BUT – you must make sure you align yourself with the right agent. We are confident that we are those agents. To know what your next steps are just get in contact with us!

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!