Chester County Real Estate Statistics: May 2010

Posted on: 06-2-2010 Posted in: Chester County, Market Update, Monthly Update, News

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The Chris & Caleb Team Assessment:

After the marathon that March and April were, we knew we would probably be hearing some crickets in May. And boy did we EVER!

PENDINGS: Last month was the worst month on record for pending home sales in Chester County – at least in 10 years, if not 20 or more. The average over 5 years has been around the 500 mark – last month was 251! This drop in activity was expected by The Chris & Caleb Team, though not the severity. Basically what happened was that the activity the market saw in March and April stole from May, June and July. We expect the numbers for June and July to follow the same level of low activity, though we should see some increase, slowly back to the averages. Seasonally speaking, it is all downhill from here as you can tell, June is the last month of the spring market when a majority of the business is really done.

CLOSED SALES: These numbers are tracking slightly better than 2009, but that is most likely due to the activity spurred by the tax credit. By August the tax credit effect will have subsided and we will know truly where the market is tracking. We believe the market will track at or below 2009 levels, depending on what happens in the overall economy.

ACTIVE LISTINGS/SUPPLY: These numbers are also tracking with 2009. The disconcerting fact is that the supply does not appear to be dented by the tax credit activity. Ideally, that number should have come down slightly because of all that activity, and we still may see a slight adjustment as some of the “pending” homes actually settle. In the end, it’s economy 101 – if the demand is low, the supply goes up. As the supply goes up, the price comes down. We believe the rest of the year will be a repeat of 2009 as far as actives go.

AVERAGE SOLD PRICE: Nothing sensational here either. These numbers are tracking with last year as well. The number did see a bump in March, but that is probably due to a combination of jumbo loans becoming attractive again and as a result there was some movement in high price ranges.

What does this mean?

For Seller’s: Unfortunately, your home is worth less than it was in April. The market is slowing down, not only seasonally but due to the tax credit as well. If your home is currently on the market and was before May, then you should seriously look at your pricing strategy and see if an adjustment is in order. Most likely – it is, and certainly not an increase. If you are in a difficult position or need to sell quickly, then you need to be super aggressive with your pricing and marketing. If there is 10+ months worth of inventory and there are less than 1 home selling a month and you are competing with 10 other homes – you better be the CLEAR value and choice. It’s not the time for the faint at heart. . .

For Buyer’s: If you are qualified to buy a home and want to – now is a FANTASTIC time. There is a drought of sorts for qualified, willing buyers, which gives you a tremendous amount of power. Prices are adjusting downward and the interest rates are back below 5%. If you are thinking of buying, now is the time!

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!