WEST CHESTER, DOWNINGTOWN, GREAT VALLEY, BEAT NATIONAL REAL ESTATE MARKET BY A LOT

If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. Contrary to those headlines, home prices aren’t in a freefall. The latest data tells a very different and much more positive story. Local home price trends still vary by market, but here’s what the national data tells us.  More great news about local home prices later, but first here is a look at the national scene.

If we take a year-over-year view, home prices stayed positive – they just appreciated more slowly than they did at the peak of the pandemic. To get a more detailed picture of some of the trends in the market, we need to look at monthly data.

The monthly graphs below use recent reports from three sources to show that the worst home price declines are already behind us, and prices are on their way back up nationally.

The story this more detailed monthly view tells us is that the last year has been a tale of two halves in the housing market. In the first half of 2022, home prices were climbing, and they peaked in June. Then, in July, home prices started to decline (shown in red in the graphs above). And by roughly August or September, the trend began to stabilize. As we look at the most recent data for the early part of 2023, these graphs also show a recent rebound in momentum with prices ticking back up. Monthly changes in home prices are gaining steam as we move into the busier spring season.

While one to two months doesn’t make a trend, the fact that all three reports show prices have stabilized is an encouraging sign for the housing market. The month-over-month data conveys a clear, but early, consensus that a national shift is taking place today. In essence, home prices are starting to tick back up.

Andy Walden, Vice President of Enterprise Research at Black Knight, says this about home price trends:

“Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92% of markets from February.”

Selma Hepp, Chief Economist at CoreLogic, explains the limited supply of homes available for sale is contributing to this positive turn:

“ . . . prices in many large metros appeared to have turned the corner, with the U.S. recording a second month of consecutive monthly gains. . . . The monthly rebound in home prices underscores the lack of inventory in this housing cycle.” 

WHAT DOES THIS MEAN FOR WEST CHESTER, DOWNINGTOWN AND GREAT VALLEY?

Check out the below chart that shows median sales prices single family detached houses from January, 2021 through May of 2023. 

WEST CHESTER, DOWNINGTOWN, GREAT VALLEY, MEDIAN SALES PRICE, SINGLE FAMILY
Month Sale Price Sale Price Difference % Diff Sale Price Difference % Diff
   2021    2022 2023
     ($)      ($)       ($)    (%)      ($) (      $)    (%)
Jan $525,000 $565,000 $40,000 7.6% $636,500 $71,500 12.7%
Feb $577,000 $554,000 ($23,000) -4.0% $620,000 $66,000 11.9%
Mar $557,188 $635,000 $77,812 14.0% $671,500 $36,500 5.7%
Apr $557,500 $685,600 $128,100 23.0% $660,750 ($24,850) -3.6%
May $591,820 $657,000 $65,180 11.0% $723,800 $66,800 10.2%
Jun $575,000 $687,977 $112,977 19.6%
Jul $642,500 $675,000 $32,500 5.1%
Aug $604,000 $647,500 $43,500 7.2%
Sep $575,000 $637,401 $62,401 10.9%
Oct $580,000 $605,000 $25,000 4.3%
Nov $550,000 $599,500 $49,500 9.0%
Dec $610,000 $590,000 ($20,000) -3.3%
Annual $578,751 $628,248 $49,498 8.6%
Year to Date $662,510 $43,190
Year over Year Up, 10 of 12 months in 2022
Year over Year Up, 4 of 5 months Year to Date in 2023

National year over year prices were down in almost every month during the last six months of the year. NOT SO IN OUR AREA WHERE PRICES WERE UP IN 5 OF THE LAST 6 MONTH.

ANNUAL PRICE INCREASE IN 2022 WAS 8.6%.

AND THE TREND CONTINUES IN 4 OF THE FIRST 5 MONTHS IN 2023.

Here’s What This Means for You

  • Sellers: If you’ve been holding off on selling because you’re worried about what was happening with home prices and how it would impact the value of your home, it may be time to jump back in and partner with an agent to list your house. You don’t have to put your needs on hold any longer because the latest data shows a turn in your favor.
  • Buyers: If you’ve been waiting to buy because you didn’t want to purchase something that would decrease in value, you now have the peace of mind things are looking up. Buying now lets you make your move before home prices climb more and gives you the chance to own an asset that typically grows in value over time.
  • I endorse these opinions from the national experts, EVEN MORE STRONGLY FOR OUR AREA.
  • IF YOU ARE A FIRST TIME BUYER OR A MOVE UP BUYER, THIS IS PROBABLY THE BEST TIME WE WILL EVER SEE TO MAKE THOSE MOVES.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move.
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.
  • If you would like to listen to our recent 12minute podcast on this topic, please just click the below hyperlink, 
    bit.ly/Chesco_Delco_Home_Prices_Beat_National_By_A_Lot

MEDIA, PA AREA: LOW INVENTORY AND STRONG DEMAND KEEP PRICES UP

Media, PA Area: Low Inventory and Strong Demand Keep Home Prices Up

The spring housing market has been surprisingly active this year. Even with affordability challenges and a limited number of homes for sale, buyer demand is strong, and getting stronger.

One way we know there are interested buyers right now is because showing traffic is up. Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, makes it clear more people are out looking at homes than there were prior to the pandemic (see graph below):

And though there’s less traffic than the buyer frenzy of the past couple of years, we’re not far off that pace. There are a lot of interested buyers checking out available homes right now.

But why are buyers so active at a time when mortgage rates are higher than they were just last year?

THE JOB MARKET IS GROWING AT A STRONGER-THAN-EXPECTED PACE

With inflation still high, the Federal Reserve (the Fed) repeatedly hiking the Federal Funds Rate, and a lot of chatter in the media about a recession, it might surprise you just how strong today’s job market is. What might be even more surprising is the fact that it appears to be getting stronger (see graph below):

Each month, the Bureau of Labor Statistics (BLS) reports how many new jobs were added to the U.S. job market. The graph above shows 88,000 more jobs were created in April than in March. In fact, the April numbers beat expert projections. That’s a solid indicator the job market is growing.

UNEMPLOYMENT IS AT A NEAR ALL-TIME LOW

Ever since the Fed began fighting inflation, many people expected the low unemployment rate we’ve seen over the past couple of years to rise – but that hasn’t happened.

In fact, what has happened is the unemployment rate has dropped to 3.4% – a 50-year low (see graph below):

With so many people steadily employed and financially stable right now, they’re still able to seriously consider buying a home.

WHAT DOES THIS MEAN FOR SELLERS AND BUYERS IN WEST CHESTER

If you’re thinking about selling your house this year, a market with active buyers is music to your ears. That’s because there’ll be increased interest in your home when you put it on the market, especially at a time when the number of homes for sale is so low.

For more insight, please check out the below chart.

DELCO, ROSE TREE MEDIA SCHOOL DISTRICT, MEDIAN PRICE SINGLE FAMILY
Month Sale Price Sale Price Sale Price
2021 2022 2023
Jan $500,000 $612,450 $1,200,000
Feb $419,900 $694,500 $950,000
Mar $579,000 $695,750 $540,000
Apr $516,250 $505,000 $648,600
May $528,000 $706,000
Jun $615,000 $664,250
Jul $660,000 $897,500
Aug $587,506 $730,000
Sep $584,300 $677,000
Oct $635,000 $530,000
Nov $580,000 $690,000
Dec $534,000 $626,500
Annual Average $561,580 $669,079
Change 19.1%

 

Prices are still holding up in our area. In 2022, prices were up, year over year, in 10 of the 12 months. That also extended into 3 of the first four months of 2023.  One word of caution, however. January and February sales had a unusually large number of higher priced sales. That will not be typical for the rest of the year.

But even given that,  mitigating against a steep decline are two facts. We have only 4 months of inventory and median days on market to get an acceptable offer are only 5. Those are both indicators of strong demand for the houses that are on the market.

It is true that sales are down A LOT, so far in 2023. Down by 37% in the first four months of 2023.  However, does this also mean that we are in for a big decline in prices? I am thinking no, but I will keep an eye on this and continue to report on the trends that I see.

To get started, your best resource is an experienced real estate agent. They can help you price your house appropriately, navigate the offers you’ll receive, negotiate effectively, and minimize your stress and hassle.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move.
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.

WEST CHESTER, PA: WHY BUYING A HOME PROBABLY MAKES MORE SENSE THAN RENTING TODAY

West Chester, PA: Why Buying a Home Probably Makes More Sense Than Renting Today

Wondering if you should continue renting or if you should buy a home this year? If so, consider this. Rental affordability is still a challenge and has been for years. That’s because, historically, rents trend up over time. Data from the Census shows rents have been climbing pretty steadily since 1988.

And, data from the latest rental report from Realtor.com shows rents continue to grow today, even though it’s at a slower pace than we saw at the height of the pandemic:

“In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).”

With rents much higher now than they were in more normal, pre-pandemic years, owning your home may be a better option, especially if the long-term trend of rents increasing each year continues. In contrast, homeowners with a fixed-rate mortgage can lock in a monthly mortgage payment for the duration of their loan (typically 15-30 years).

Owning a Home Could Be More Affordable if You Need More Space

The graph below uses national data on the median rental payment from Realtor.com and median mortgage payment from the National Association of Realtors (NAR) to compare the two options. As the graph shows, depending on how much space you need, it’s typically more affordable to own than to rent if you need two or more bedrooms:

So, if you’re looking to live somewhere where you have two or more bedrooms to accommodate your household, give you more breathing room to spread out your belongings, or dedicate the extra space to practice your hobbies, it might make sense to consider homeownership.

HOW DOES THIS SHAKE OUT FOR WEST CHESTER BECAUSE, LIKE POLITICS, ALL REAL ESTATE IS LOCAL . WE HAVE TO CONSIDER THAT Home ownership Allows You To Start Building Equity

Let’s compare the relative costs and benefits of renting a 2 bedroom dwelling in West Chester with buying the median priced 2 bedroom detached house. Median rent in West Chester is about $2,300. Median price for a 2 bedroom detached house is about $335,000. Down payment and closing costs can be as low as $25,000. Monthly principal and interest would be $2,541. And that never changes for the life of your loan.

No contest you say. Renting saves me $241 every month. Well maybe for a year, two at the most because rents go up every year. And remember, your mortgage interest and taxes are deductions on your income tax so you may even save money even in the first year.

Here is the big BUT to  that argument. If you own you begin to build equity right away.  Assuming the long term average of 3.5% value increase per year, after 10 years, your value has increased to about $473,00; after 20 years to about $667,000 and after 30 years to about $940,000. And that doesn’t even count the payoff of your mortgage.

If you rent all that time, you will just have a stack of mortgage receipts, or more likely a computer file showing that you paid.

To emphasize, in addition to shielding you from rising rents and being more affordable when you need more space, owning your home also allows you to start building your own equity, which in turn grows your net worth quickly and by a lot.

And, to repeat a bit, because it is important. As home values typically rise over time and you pay off your mortgage, you build equity. That equity can set you up for success later on because you can use it to help fuel a move to an even bigger space down the line. That’s why, according to Zonda, the top reason millennial homeowners bought their home over the past year was to build their own equity instead of someone else’s.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move.
  • Do I think that now is a good time to buy that first house or to sell and make that move up buy?  Again, absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • If you’re trying to decide whether to buy a home or continue renting, let’s connect to explore your options. With rents rising, it probably makes more sense to pursue your dream of homeownership.
  • If you would like to listen to our 13 minute podcast on this topic, please click on the below hyperlink: https://bit.ly/Buying_Makes_More_Sense_Than_Renting

CHESTER COUNTY, ARE LOWER HOME PRICES COMING?

CHESTER COUNTY, ARE Lower Home Prices COMING?

As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on buying a home until prices drop significantly. But that’s not the best strategy.

A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports:

“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”

And the latest data from Black Knight shows the same shift. The graph below compares home price trends in November to those in February:

So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The data shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.

ARE PRICES GOING TO GO UP OR DOWN IN CHESTER COUNTY?

This is really one of the most central questions for buyers and sellers.

  • First time buyers want to know if prices are going to go lower right after they buy. If they are it would make sense to wait.
  • Move up buyers with a house to sell need to know if they can get a fair price for their present house and if their next house is going to be worth more or less in the next months and years.

My recommendation to both groups is to BUY NOW.  Here is why.

The below chart shows,  month by month,  year over year median sales price in Chesco.

The year over year median sales price was up in 11 of 12 months in 2022.  Up a very healthy 9.2% for the year. The trend continues in 2 of 4 months in 2023. YTD, through April 23 is up 1.2% in 2023

CHESCO, MEDIAN SALES PRICE, SINGLE FAMILY, DETACHED,2021 THRU 2023 YTD
Month Sale Price, Median 2021 Sale Price, Median 2022 Sale Price, Median 2023
Jan $452,500 $484,900 $527,500
Feb $441,700 $510,000 $507,500
Mar $495,000 $525,000 $545,000
Apr $481,250 $540,000 $505,000
May $512,021 $531,055
Jun $515,000 $600,000
Jul $531,000 $575,000
Aug $498,000 $550,000
Sep $479,900 $540,000
Oct $494,075 $549,500
Nov $499,000 $545,000
Dec $508,961 $500,000
Annual $492,367 $537,538
Annual Price Difference $45,171
Annual % 9.2%
Jan-Apr $514,975 $521,250
Jan-Apr Price Difference $6,275
% Difference 1.2%

 

I expect this to continue into the forseeable future. Why?  Because we still have very low inventory of houses for sale. To have a balanced market with about the same number of buyers and sellers we need 6 months of inventory. Right now we have only 3 months. That says that we have more buyers than sellers. And what always happens when there is more demand than supply?  Prices go up. Stated differently, we are still in a very strong Sellers’ Market.

I expect prices to continue to increase in Chester county. Stated differently, I see little chance that we will have any sigificant price decline in the forseeable future.

Bottom Line

If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect to make sure you understand what’s happening in our local housing market.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Again,  absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • And if you would like to listen to our 12 minute podcast on this topic, please click on https://bit.ly/Are_Lower_Home_Prices_Coming

CHESTER COUNTY, A BIG ADVANTAGE IF YOU SELL THIS SPRING

For potential home sellers in Chester County, there is a big advantage if you sell this Spring. Why?  The reasons are below.

Thinking about selling your house? If you’ve been waiting for the right time, it could be now while the supply of homes for sale is so low. HousingWire shares:

“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”

The National Association of Realtors (NAR) confirms today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:

“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”

IF YOU ARE A MOVE UP BUYER, WHY IS THIS A GOOD TIME TO SELL? 

For a move up buyer family, there are three conditions that need to be met for this to be a good time for you to sell.

  • We will be able to find a house that we really want to move into.
  • We will get a price with which we are happy.
  • Our next house will probably continue to go up in value after we buy.

With respect to , will we be able to find a house that we really want to move into, especially with the low inventories? The below chart summarizes where we are with the inventory of single family homes in Chester county.

MONTHS OF RESIDENTIAL SINGLE FAMILY
INVENTORY, CHESCO, 2020 THRU MARCH 2023
Month 2020 2021 2022 2023
Jan 8 5 4 4
Feb 10 6 6 5
Mar 7 5 4 3
Apr 7 5 4
May 10 5 4
Jun 8 3 3
Jul 5 4 3
Aug 3 3 3
Sep 4 4 3
Oct 4 4 4
Nov 4 4 4
Dec 3 3 3
Annual 6.1 4.3 3.8 4.0
Strong Seller Market Inventory

 

If we had a balanced market of about 6 months inventory, it would normally take 30-45 days to find a house you really like. With inventory at half of that, it could take a lot longer.  But be assured, there is a house out there that you will love. I suggest you find that house first and finalize the deal before you put your house on the market. That way you know you will love it when yoy get  there.

With respect to the price, the less inventory there is on the market when you sell, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. Multiple offers are on the rise again (see graph below):

The below chart shows the sales price trend in Chester county.

CHESCO, MEDIAN SALES  PRICE, SINGLE FAMILY
2020 THRU MARCH 2023
Month 2020 2021 2022 2023
Jan $396,250 $452,500 $484,900 $527,500
Feb $385,000 $441,700 $510,000 $507,500
Mar $386,792 $495,000 $525,000 $542,000
Apr $425,000 $481,250 $540,000
May $447,450 $512,021 $531,055
Jun $429,950 $515,000 $600,000
Jul $459,900 $531,000 $575,000
Aug $460,000 $498,000 $550,000
Sep $451,100 $479,900 $540,000
Oct $453,000 $494,075 $549,500
Nov $440,000 $499,000 $545,000
Dec $451,000 $508,961 $500,000
Annual $432,120 $492,367 $537,538
Annual % 13.9% 9.2%
Year over Year increases 12 of 12 months in 2021
11 of 12 months in 2022 and 2 of 3 months in 2023
Strong Upward Price Trend

 

The numbers in bold italics show the year over year months in which sales price was above the same month in the previous year. 11 out of 12 months in 2022 and 2 of 3 in 2023. That is a strong upward price trend that says you should be able to get a price that makes you happy, if your house is properly priced and marketed.

If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still in a strong sellers’ market, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal.

I believe that these data show we are still in a strong sellers’ market and the risk of any significant downtrend in prices is very small.

For the move up buyer, you also have excellent prospects that your new house wil continue to go up in value. So now is the time to make that move and start to increase your family’s net worth.

One more question needs to be answered and that is, will we be able to sell our house soon enough to avoid having two mortgages to pay. My recommendations here are:

  • Negotiate a long time period from offer acceptance to settlement on the house you buy.
  • Then get your house on the market with a good realtor, priced right and marketed right.

The below chart summarizes the recent history of days on market or about how long it should take you to sell.

CHESCO, DAYS ON MARKET (DOM), 2020 THRU MARCH 2023
SINGLE FAMILY, DETACHED
Month DOM, 2020 DOM,2021 DOM 2022 DOM 2023
Jan 45 8 7 14
Feb 48 9 8 8
Mar 26 7 6 6
Apr 13 6 5
May 13 5 6
Jun 14 6 6
Jul 9 6 6
Aug 7 6 7
Sep 8 7 7
Oct 7 6 7
Nov 7 8 7
Dec 7 7 12

 

As you can see, median days on market for most of the last two years have been about a week. That means that you can reasonably expect to have an offer with which you are comfortable in about seven days. That really minimizes the risk that you could get stuck with two mortgages. If you have 60 days to settle and get your house sold in a week, you should be in great shape. Here again, you can really use the services of a good realtor.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Again,  absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • If you would like to listent to our 14 minute podcast on this topic, please click  https://bit.ly/Big_Advantage_If_You_Sell_This_Spring

 

 

DELAWARE COUNTY, WHAT’S AHEAD FOR HOME PRICES IN 2023?

DELAWARE COUNTY, What’s Ahead for Home Prices in 2023?

Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – which hasn’t happened. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.

Selma Hepp, Chief Economist at CoreLogic, says:

“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”

Additionally, every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:

So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider making a move:

  1. Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has risen consistently. The bottom line is, rent is going up.
  2. Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
  3. Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a renter.

Experts are projecting slight price depreciation in the national housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.

Here are my thoughts on whether or not the time is right for a first time home buyer or for a move seller who wants to move into an upgraded house.

For Delaware county, my  recommendation is a RESOUNDING YES, for both questions. And here is why.

Single family home prices are still rising. Just take a look at the below chart.

DELAWARE COUNTY, MEDIAN SALES PRICE, SINGLE FAMILY DETACHED
Month Sale Price Sale Price Difference Diff % Sale Price Difference Diff %
Median, 2021 Median, 2022 Median, 2023
Jan $359,000 $360,000 $1,000 0.3% $375,000 $15,000 4.2%
Feb $335,450 $376,000 $40,550 12.1% $390,000 $14,000 3.7%
Mar $369,500 $403,500 $34,000 9.2% $394,500 ($9,000) -2.2%
Apr $400,000 $415,000 $15,000 3.8%
May $400,000 $427,000 $27,000 6.8%
Jun $410,000 $451,500 $41,500 10.1%
Jul $425,000 $420,000 ($5,000) -1.2%
Aug $415,000 $430,000 $15,000 3.6%
Sep $385,000 $385,000 $0 0.0%
Oct $400,000 $390,000 ($10,000) -2.5%
Nov $384,900 $410,000 $25,100 6.5%
Dec $380,000 $420,000 $40,000 10.5%
Annual $388,654 $407,333 $18,679 4.8%
Year over Year, Median Price Up in 10 of 12 Months in 2022; Up 4.8 % for the year.
Trend cotinues into 2023, 2 of 3 months, YTD

Median sales price was up in 10 of 12 months from 2021 to 2022.  Trend went  negative for one month in 2023, but Year to Date is still positive. This tells me that we still have a powerful upward trend in prices. Here is more date to back that up.

National Association of Realtors data going back decades tells us that when we have less than 6 months of inventory, that means we have more buyers than sellers. What always happens when demandis higher than supply.  Prices go up.

DELAWARE COUNTY, MONTHS OF INVENTORY, SINGLE FAMILY, DETACHED
Month 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Jan 11 9 9 6 7 7 5 3 3 4
Feb 14 11 10 9 8 7 7 5 4 3
Mar 11 10 10 7 6 7 5 4 3 2
Apr 10 9 8 7 5 5 5 4 3
May 8 8 6 5 5 4 6 4 3
Dec 6 6 4 4 3 3 6 3 3
Jul 7 6 5 5 4 4 3 3 3
Aug 7 7 5 4 4 4 3 3 2
Sep 9 8 6 6 6 5 3 4 3
Oct 9 7 7 6 5 6 3 3 3
Nov 8 10 6 5 5 6 3 3 3
Dec 7 6 5 4 4 4 3 2 2
Annual 8.9 8.1 6.8 5.7 5.2 5.2 4.3 3.4 2.9 3.0

 

After the federal government induced market collapse of 2008, it took until July of 2020 for inventory to get below 6 months and stay there.  As would have been predicted, that is when sales price increases really accelerated as shown in the below chart

DELAWARE COUNTY, MEDIAN SALES PRICE, SINGLE FAMILY, DETACHED
Primary Year Sale Price, Median Difference % Diff
2014 $275,000
2015 $270,000 ($5,000) -1.8%
2016 $280,500 $10,500 3.9%
2017 $297,750 $17,250 6.1%
2018 $305,000 $7,250 2.4%
2019 $320,000 $15,000 4.9%
2020 $350,000 $30,000 9.4%
2021 $390,000 $40,000 11.4%
2022 $410,000 $20,000 5.1%
Average % Increase Starting 2016 6.6%

 

Price increases of 5 to 11% are too high to be sustainable long term. But given the low inventories in our area, I see little chance for any signiificant price decreases in the foreseeable future.

IMPLICATIONS FOR BUYERS AND SELLERS TODAY

  • Is it a good time for first time buyer to get in the market? Yes. There will never be a better time to get that first house and begin to build your family’s net worth.
  • Is it a good time for move up buyers to sell and get into that bigger better house they have been wanting.  Again, yes. They will be able to sell for a price they can be happy with.
  • With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.  Finding a home you really want to move to can be a bit more difficult today and you need the advice of an experienced and capable agent to make sure that it works for you.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Again,  absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.f
  • If you would like to hear more about this topic, please click on https://bit.ly/What_Is_Ahead_For_Home_Prices_In_2023 to hear our 12 minute podcast.

DELAWARE COUNTY, ARE HOME PRICES GOING TO CRASH?

DELAWARE COUNTY, ARE HOME PRICES GOING TO CRASH?

The short answer is NO!!!!! And here are the reasons and he recent history to back up that statement

There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, national home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

“[H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.

Please note that in the bad old days when we were coming out of the Federal Government caused housing price collapse, we were at 9+ months of inventory. In fact, I recall that back in the real bad old days we got as high as 18 months in Delaware county.

That lack of available homes on the market is putting upward pressure on prices. Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Here is the recent history for Delaware county.

DELAWARE COUNTY, MONTHS OF INVENTORY, SINGLE FAMILY, DETACHED
Month 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Jan 11 9 9 6 7 7 5 3 3 4
Feb 14 11 10 9 8 7 7 5 4 3
Mar 11 10 10 7 6 7 5 4 3 2
Apr 10 9 8 7 5 5 5 4 3
May 8 8 6 5 5 4 6 4 3
Dec 6 6 4 4 3 3 6 3 3
Jul 7 6 5 5 4 4 3 3 3
Aug 7 7 5 4 4 4 3 3 2
Sep 9 8 6 6 6 5 3 4 3
Oct 9 7 7 6 5 6 3 3 3
Nov 8 10 6 5 5 6 3 3 3
Dec 7 6 5 4 4 4 3 2 2
Annual 8.9 8.1 6.8 5.7 5.2 5.2 4.3 3.4 2.9 3.0

 

Back in 2014, we had 14 months of inventory. It took until July of 2020 for inventory to reach and stay below 6 months, which is the dividing line between a buyer or balanced market and a sellers market. Sellers market being one in which we have more buyers than sellers (more demand than supply) which pushes prices up.

Even with the recent mortgage rate shocks, inventory levels are staying in the 3-5 month range. That is still strong seller market territory. Prices have responded like you would expect, as shown in the  below chart.

DELAWARE COUNTY, MEDIAN SALES PRICE, SINGLE FAMILY, DETACHED
Primary Year Sale Price, Median Difference % Diff
2014 $275,000
2015 $270,000 ($5,000) -1.8%
2016 $280,500 $10,500 3.9%
2017 $297,750 $17,250 6.1%
2018 $305,000 $7,250 2.4%
2019 $320,000 $15,000 4.9%
2020 $350,000 $30,000 9.4%
2021 $390,000 $40,000 11.4%
2022 $410,000 $20,000 5.1%
Average % Increase Starting 2016 6.6%

 

Since we got under 6 months of inventory in 2020, price increases have only accelerated. 5 to 11% is too high to be long term sustainable but I see no signs of a significant price decline coming our way.

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

IMPLICATIONS FOR BUYERS AND SELLERS TODAY

  • Is it a good time for first time buyer to get in the market? Yes. There will never be a better time to get that first house and begin to build your family’s net worth.
  • Is it a good time for move up buyers to sell and get into that bigger better house they have been wanting.  Again, yes. They will be able to sell for a price they can be happy with.
  • With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.  Finding a home you really want to move to can be a bit more difficult today and you need the advice of an experienced and capable agent to make sure that it works for you.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Again,  absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.

CHESTER COUNTY, ARE HOME PRICES GOING TO CRASH?

CHESTER COUNTY, ARE HOME PRICES GOING TO CRASH?

The short answer is NO!!!!! And here are the reasons and he recent history to back up that statement

There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

“[H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.

Please note that in the bad old days when we were coming out of the Federal Government caused housing price collapse, we were at 9+ months of inventory. In fact, I recall that back in the real bad old days we got as high as 18 months in Chester county.

That lack of available homes on the market is putting upward pressure on prices. Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Here is the recent history for Chester county.

MONTHS OF INVENTORY, CHESTER COUNTY, SINGLE FAMILY, DETACHED.
Month 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Jan 11 10 9 8 7 9 8 5 4 4
Feb 14 12 12 12 10 10 10 6 6 5
Mar 11 9 10 8 7 6 7 5 4 3
Apr 11 10 9 8 7 8 7 5 4
May 9 9 8 6 6 6 10 5 4
Jun 6 6 5 5 4 5 8 3 3
Jul 7 5 6 6 5 5 5 4 3
Aug 6 6 5 5 5 5 3 3 3
Sep 9 7 7 6 6 7 4 4 3
Oct 8 8 7 7 6 7 4 4 4
Nov 9 8 6 6 5 7 4 4 4
Dec 6 7 6 5 6 6 3 3 3
Annual 8.9 8.1 7.5 6.8 6.2 6.8 6.1 4.3 3.8 4.0

 

Back in 2014, we had 14+ months of inventory. It took until July of 2020 for inventory to reach and stay below 6 months, which. is the dividing line between a buyer or balanced market and a sellers market. Sellers market being one in which we have more buyers than sellers (more demand than supply) which pushes prices up.

Even with the recent mortgage rate shocks, inventory levels are staying in the 3-5 month range. That is still strong seller market territory. Prices have responded like you would expect, as shown in the  below chart.

CHESTER COUNTY, MEDIAN SALES PRICE, SINGLE FAMILY DETACHED
Primary Year Sale Price Difference % Diff
2014 $350,875
2015 $360,125 $9,250 2.6%
2016 $363,000 $2,875 0.8%
2017 $380,000 $17,000 4.7%
2018 $399,000 $19,000 5.0%
2019 $405,000 $6,000 1.5%
2020 $440,000 $35,000 8.6%
2021 $499,000 $59,000 13.4%
2022 $540,000 $41,000 8.2%

 

Since we got under 6 months of inventory in 2020, price increases have only accelerated. 8%+ is too high to be long term sustainable but I see no signs of a significant price decline coming our way.

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

IMPLICATIONS FOR BUYERS AND SELLERS TODAY

  • Is it a good time for first time buyer to get in the market? Yes. There will never be a better time to get that first house and begin to build your family’s net worth.
  • Is it a good time for move up buyers to sell and get into that bigger better house they have been wanting.  Again, yes. They will be able to sell for a price they can be happy with.
  • With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.  Finding a home you really want to move to can be a bit more difficult today and you need the advice of an experienced and capable agent to make sure that it works for you.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Again,  absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say.
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.

DELAWARE COUNTY, 2 THINGS SELLERS NEED TO KNOW THIS SPRING

DELAWARE  COUNTY, 2 THINGS SELLERS NEED TO KNOW THIS SPRING

A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.

1. HOUSES THAT ARE PRICED RIGHT ARE STILL SELLING

Houses that are updated and priced at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, says:

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, explains:

“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”

While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on pricing their house well are still finding success. And that’s great news if you’re thinking about selling.

2. BUYERS ARE STILL OUT THERE

As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of reasons people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers:

“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”

That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.

WHAT DOES THIS MEAN FOR DELAWARE COUNTY?

If you are thinking about selling and making a move up buy, there are two major factors to consider.

  • Will I be able to sell for the price I think is fair,  in this increased interest rate market?
  • How long will it probably take?

To answer the first question, please take a look at the table below. It shows median price of a single family home in Delaware county for the last 2+ years. Please note that the median price for 10 of the 12 months in 2022 was higher than for the same month in 2021.  This trend continued into January and February, 2023.

MEDIAN SALES PRICE, DELAWARE COUNTY, SINGLE FAMILY DETACHED.
Month Sale Price Sale Price Difference % Diff Sale Price Difference % Diff
2021 2022 2023
Jan $359,000 $360,000 $1,000 0.3% $375,000 $15,000 4.2%
Feb $335,450 $376,000 $40,550 12.1% $390,000 $14,000 3.7%
Mar $369,500 $403,500 $34,000 9.2% $387,500 ($16,000) -4.0%
Apr $400,000 $415,000 $15,000 3.8%
May $400,000 $427,000 $27,000 6.8%
Jun $410,000 $451,500 $41,500 10.1%
Jul $425,000 $420,000 ($5,000) -1.2%
Aug $415,000 $430,000 $15,000 3.6%
Sep $385,000 $385,000 $0 0.0%
Oct $400,000 $390,000 ($10,000) -2.5%
Nov $384,900 $410,000 $25,100 6.5%
Dec $380,000 $420,000 $40,000 10.5%
Annual $388,654 $407,333 $18,679 4.8%
Average Sales Price, 1Q, 2022 $379,833
Average Sales Price, 1Q, 2023 $384,167
Difference $4,333
% Diff 1.1%

 

March 2023 median price was lower than the same month in 2022. Could this mean that we have reached a turning point and that prices will probably be going down from here on?  Maybe, but I do not think so. Even if we have a modest dip, price appreciation should resume quickly. That means that you can get a reasonable price for your home, if you choose to make a move up buy.

With respect to how long will it take, Days on Market for Delaware County for the last 3 months have been 16, 18 and 11. That means that if  your house is priced right and marketed well, you can reasonably expect to have an offer you can accept no more that 2-3 weeks.

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say. 
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.

CHESTER COUNTY, 2 THINGS SELLERS NEED TO KNOW THIS SPRING

CHESTER  COUNTY, 2 Things Sellers Need To Know This Spring

A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.

1. Houses That Are Priced Right Are Still Selling

Houses that are updated and priced at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, says:

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, explains:

“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”

While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on pricing their house well are still finding success. And that’s great news if you’re thinking about selling.

2. Buyers Are Still Out There

As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of reasons people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, spells out the mindset of today’s buyers:

“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”

That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.

WHAT DOES THIS MEAN FOR CHESTER COUNTY

If you are thinking about selling and making a move up buy, there are two major factors to consider.

  • Will I be able to sell for the price I think is fair,  in this increased interest rate market?
  • How long will it probably take?

To answer the first question, please take a look at the table below. It shows median price of a single family home in Chester county for the last 2+ years. Please note that the median price for 11 of the 12 months in 2022 was higher than for the same month in 2021.  This trend continued into January, 2023.

February and March 2023 median price was lower than the same month in 2022. Could this mean that we have reached a turning point and that prices will probably be going down from here on.  Maybe, but i do not think so. Even if we have a modest dip, price appreciation should resume quickly. That means that you can get a reasonable price for your home, if you choose to make a move up buy.

With respect to how long will it take, Days on Market for Chester County for the last 3 moths have been 18, 13 and 10. That means that if  your house is priced right and marketed well, you can reasonably expect to have an offer you can accept no more that 2-3 weeks.

MEDIAN SALES PRICE, CHESTER COUNTY, PA, SINGLE FAMILY DETACHED
Month Sale Price Sale Price Difference % Diff Sale Price Difference % Diff
2021 2022 2022-2021 2023 2023-2022
Jan $452,500 $484,900 $32,400 7.2% $527,500 $42,600 8.8%
Feb $441,700 $510,000 $68,300 15.5% $507,500 ($2,500) -0.5%
Mar $495,000 $525,000 $30,000 6.1% $510,000 ($15,000) -2.9%
Apr $481,250 $545,000 $63,750 13.2%
May $512,021 $531,055 $19,034 3.7%
Jun $515,000 $600,000 $85,000 16.5%
Jul $531,000 $575,000 $44,000 8.3%
Aug $498,000 $550,000 $52,000 10.4%
Sep $479,900 $540,000 $60,100 12.5%
Oct $494,075 $549,500 $55,425 11.2%
Nov $499,000 $545,000 $46,000 9.2%
Dec $508,961 $500,000 ($8,961) -1.8%
Annual $492,367 $537,955 $45,587 9.3%
Average Sales Price, 1Q, 2022 $506,633
Average Sales Price, 1Q, 2023 $515,000
Difference $8,367
% Diff 1.7%

 

SUGGESTED NEXT STEPS FOR YOU TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED TO MAKE THE RIGHT DECISION

  • It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the market in your area if you’re planning to make a move this spring.
  • Do I think that now is a good time to sell and make that move up buy?  Absolutely yes.
  • To get a quick update of what is new in real estate, click here to check out our new videos.
  • Interested in what recent clients think of my service? Click here to read what they say. 
  • Interested to know what your house is worth? Click here to get the most extensive and accurate estimate of home value that is available on the Internet. No cost or obligation of course.
  • No doubt, the housing market is shifting, and it can be a confusing place right now. I suggest that we connect so that I can help you make confident and informed decisions about what’s happening. Minimize the fear or uncertainty that could change your plans. If you’re unsure about how to make sense of what’s going on in today’s housing market, text or call me at 484-574-4088 or go to my web site, (johnherreid.com) and lets set up a time to meet, either on line or in person. I have the software so that we can meet virtually and make the best use of your time.
  • If you’re looking to make that move up buy this year, I believe now is a good time to do it. The best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect. I would like to interview for the job of becoming your trusted real estate advisor.
  • One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. By selling your house and leveraging your equity, it can be easier to pay for your next home. Let’s connect to find out how much equity you have in your current home and how you can use it to fuel your next purchase.
  • There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
  • If you would like to listen to our recent 14 minute podcast on this topic, please click on
    bit.ly/Chester_County_2_Things_Sellers_Need_To_Know