WESTCHESTER AREA, WHY NOW IS A GREAT TIME FOR HOME SELLERS

WESTCHESTER AREA, WHY NOW IS A GREAT TIME FOR HOME SELLERS

Price levels for residential real estate in the Westchester area  have been very stable and increasing in recent years. As of late, the market has seen a dramatic increase in home prices. This upswing in home values has an incredible benefit for home sellers. With the increased demand for homeownership and the lack of supply in our current housing market, now is the best time to take advantage of this seller’s market.

Increased Home Prices
The continuous increase in home prices is a primary indicator that the housing market is thriving. Buyers are willing to pay more for a home, making this the best time for sellers to make an excellent profit. Homeowners who have been on the market for extended periods will appreciate the unexpected price increases, no matter how small or large. While some sellers might worry about overpriced homes that don’t sell, it’s a challenge for any market. As long as the asking price is realistic, sellers can be assured that buyers will show interest.

Please check out the below chart for the recent history of home value increases in the Westchester area.

Westchester Area, Median Sale Price, Single Family Houses, 2021 through 2023
Month Sale Price Sale Price Difference % Diff Sale Price Difference % Diff
2021 2022 22-21 2023 23-22
Jan $411,000 $450,000 $39,000 9.5% $447,500 ($2,500) -0.6%
Feb $430,000 $453,275 $23,275 5.4% $467,450 $14,175 3.1%
Mar $466,403 $480,000 $13,597 2.9% $480,000 $0 0.0%
Apr $446,551 $490,000 $43,449 9.7% $528,420 $38,420 7.8%
May $478,700 $495,000 $16,300 3.4% $525,000 $30,000 6.1%
Jun $466,150 $540,000 $73,850 15.8% $540,388 $388 0.1%
Jul $449,050 $535,000 $85,950 19.1% $507,000 ($28,000) -5.2%
Aug $470,674 $482,500 $11,826 2.5%
Sep $453,614 $465,000 $11,386 2.5%
Oct $460,000 $490,000 $30,000 6.5%
Nov $449,385 $485,000 $35,615 7.9%
Dec $455,500 $435,000 ($20,500) -4.5%
Annual $453,086 $483,398 $30,312 6.7%
YTD, July $449,693 $491,896 $42,203 9.4% $499,394 $7,498 1.5%
Sumary:  Year over Year Sales Price Up 11 of 12 months, 2022 to 2021
Year over Year Sales Price Up 5 of 7 months, 2023 to 2022
Prices still steady and going up in the West Chester Area. 
Areas included, Westchester, Downingtown, Great Valley

 

As you can see, prices are still on the rise in our area. And with low inventories, houses are selling quickly, usually in about a week or less. That is good news for buyers looking for the best way to  build family wealth.

High Interest Rates
One hurdle for homebuyers is the recent dramatic rise in interest rates from about 3-4% up to 7% and higher. However, home prices are stable and rising in the area. I advise people who can make the purchase to do it now so that they start to realize the immediate appreciation in the value of their home.

High Demand
The demand for homes is on the rise with more Gen Z and Millennials leaving apartments to start families or search for more extensive living spaces for remote work purposes. A high demand means a higher chance for a bidding war, driving up home prices and increasing the home seller’s profit margins. With remote work becoming more common, families are searching for larger homes or better spaces suited for a work-from-home environment, driving the market even more.

Easy Listing and Closing Processes
Real estate agencies are streamlining the selling process by listing homes in more traditional ways like architectural listings or on MLS platforms. Selling a house no longer requires significant efforts from the homeowners dealing with the stresses of repairs, staging, and accompanied showings. The market’s high demand is also making the closing process more efficient, with fewer contingencies and shorter closing periods.

Conclusion:
With all the above indications, this is undoubtedly the best time for homeowners to sell their homes in this seller’s market. Homeowners are presented with a unique opportunity to list properties and make a lucrative profit. The increase in home prices,  high demand, and efficient selling processes all point to a robust market set up for those intending to sell their homes. Homeowners looking to profit from their current homes should take advantage of this seller’s market by contacting a trusted real estate agent today.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • 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. I would like to become that real estate expert upon whom you can lean.
  • 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 changing, 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.

WESTCHESTER, PA; UNDERSTANDING EQUITY IN HOME OWNERSHIP

UNDERSTANDING EQUITY IN HOME OWNERSHIP. WHY IT MATTERS

Owning a home is a significant accomplishment that comes with numerous benefits. However, one essential aspect of homeownership that often gets overlooked is equity. Building equity is crucial for homeowners since it can secure better mortgage rates, provide funds for a down payment, and increase the value of the home. Unfortunately, many homeowners don’t understand the concept of equity, let alone how to build it.

UNDERSTANDING EQUITY

Equity is the difference between the value of your home and the amount you owe on your mortgage. For instance, if your home is worth $500,000, and your mortgage balance is $300,000, your equity is $200,000. It’s important to note that equity is not the same as home value. Home value refers to the current worth of your property, while equity is an asset that has accumulated as you’ve paid off your mortgage over time. Equity plays a vital role in mortgage rates since lenders view borrowers with more equity as less risky and offer them lower rates. Moreover, homeowners with significant equity can sell their homes at a higher price.

THE BENEFITS OF EQUITY

Building equity has numerous benefits in homeownership. One of the primary advantages is that it can provide funds for a down payment when purchasing a new home. For example, if the value of your current home exceeds the mortgage balance, you can use the surplus equity to make a down payment on your new home. In addition, if you’re in a position to do so, purchasing a home in all cash can be a smart investment strategy, and equity can make that a viable option.

In the West Chester area, home values have been increasing rapidly. For instance, please check out the below chart which shows median sales prices for homes in the West Chester area over the last two and a half years.

Westchester Area, Median Sale Price, Single Family Houses, 2021 through 2023
Month Sale Price Sale Price Difference % Diff Sale Price Difference % Diff
2021 2022 22-21 2023 23-22
Jan $411,000 $450,000 $39,000 9.5% $447,500 ($2,500) -0.6%
Feb $430,000 $453,275 $23,275 5.4% $467,450 $14,175 3.1%
Mar $466,403 $480,000 $13,597 2.9% $480,000 $0 0.0%
Apr $446,551 $490,000 $43,449 9.7% $528,420 $38,420 7.8%
May $478,700 $495,000 $16,300 3.4% $525,000 $30,000 6.1%
Jun $466,150 $540,000 $73,850 15.8% $540,388 $388 0.1%
Jul $449,050 $535,000 $85,950 19.1% $507,000 ($28,000) -5.2%
Aug $470,674 $482,500 $11,826 2.5%
Sep $453,614 $465,000 $11,386 2.5%
Oct $460,000 $490,000 $30,000 6.5%
Nov $449,385 $485,000 $35,615 7.9%
Dec $455,500 $435,000 ($20,500) -4.5%
Annual $453,086 $483,398 $30,312 6.7%
YTD, July $449,693 $491,896 $42,203 9.4% $499,394 $7,498 1.5%
Sumary: Year over Year Sales Price Up 11 of 12 months, 2022 to 2021
Year over Year Sales Price Up 5 of 7 months, 2023 to 2022
Prices still steady and going up in the West Chester Area.
Areas included, Westchester, Downingtown, Great Valley

If you bought a house just 2 and one half years ago for the median price of $453,086, you would have increased equity of almost $50,000. If you bought your house more earlier than 2021, you would have even more equity.

A CMA, (Comparative Market Analysis) is a report that provides homeowners with an  estimate of their home’s current value, the amount of equity, and how they can improve it. Obtaining a CMA is beneficial for homeowners who want to verify their property’s worth and understand their equity’s potential. It can also be used by homeowners who plan to sell their homes to determine a competitive price and ask for more in a home sale. If you would like a CMA for your house, please call or text me at 484 574 4088 or go on my web site at www.johnherreid.com and ask for a home value estimate.

Equity is a crucial aspect of homeownership that every homeowner should understand. Homeowners with more equity have more financial flexibility, including lower mortgage rates, funds for a down payment, and increased property value. By obtaining a CMA and making simple home improvements,  homeowners can boost their equity’s potential, secure their financial future, and grow their wealth. Taking small steps now can lead to tremendous gains over time, making it well worth the effort.

WHAT YOUR HOUSE REALLY REPRESENTS

For many homeowners, a house represents not just a place of shelter and refuge, but also a major investment. This is especially true for those who have built up significant home equity over time. However, with mortgage rates fluctuating and economic uncertainty looming, some homeowners may be questioning whether it’s time to cash out and sell their homes. While concerns about mortgage rates are understandable, homeowners also need to consider their overall net worth when making this decision. Selling a home can have a significant impact on a person’s financial situation, so it’s important to weigh all the options carefully.

here is what you need to do to make the right decision for you

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • 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. I would like to become that real estate expert upon whom you can lean.
  • 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
  • There will be very unsettling headlines around the housing market this year. Most will be wrong.
  • Let’s connect so you have an expert on your side to help you keep everything in proper perspective.

MEDIA, PA AREA; BAD REAL ESTATE NEWS IS PROBABLY WRONG

If you want more information about this topic just click on the hyperlinks in the article (the underlined blue print) to see more details.

If you’re thinking of buying or selling a home, one of the biggest questions you have right now is probably: what’s happening with home prices? And it’s no surprise you don’t have the clarity you need on that topic. Part of the issue is how headlines are talking about price. If you’re thinking of buying or selling a home, one of the biggest questions you have right now is probably: what’s happening with home prices? And it’s no surprise you don’t have the clarity you need on that topic. Part of the issue is how headlines are talking about prices.

They’re basing their negative news by comparing current stats to the last few years. But you can’t compare this year to the ‘unicorn’ years (when home prices reached record highs that were unsustainable). And as prices begin to normalize now, they’re talking about it like it’s a bad thing and making people fear what’s next. But the worst home price declines are already behind us. What we’re starting to see now is the return to more normal home price appreciation.

To help make home price trends easier to understand, let’s focus on what’s typical for the market and omit the last few years since they were anomalies. 

Let’s start by talking about seasonality in real estate. In the housing market, there are predictable ebbs and flows that happen each year. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach. Home prices follow along with seasonality because prices appreciate most when something is in high demand.

That’s why, before the abnormal years we just experienced, there was a reliable long-term home price trend. The graph below uses data from Case-Shiller to show typical monthly home price movement from 1973 through 2021 (not adjusted, so you can see the seasonality):

As the data from the last 48 years shows, at the beginning of the year, home prices grow, but not as much as they do entering the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months.  The market heats up in the Summer because families want to get their deals done before school starts. That raises the demand against a fixed supply and what always happens when demand goes up and supply is unchanged. PRICES GO UP!!!! Then, as fall and winter approach, demand eases off again. Price growth slows, but still typically appreciates.

WHY THIS IS SO IMPORTANT TO UNDERSTAND

In the coming months, as the housing market moves further into a more predictable seasonal rhythm, you’re going to see even more headlines that either get what’s happening with home prices wrong or, at the very least, are misleading. Those headlines might use a number of price terms, like:

  • Appreciation: when prices increase.
  • Deceleration of appreciation: when prices continue to appreciate, but at a slower or more moderate pace.
  • Depreciation: when prices decrease.

They’re going to mistake the slowing home price growth (deceleration of appreciation) that’s typical of market seasonality in the fall and winter and think prices are falling (depreciation). Don’t let those headlines confuse you or spark fear. Instead, remember it’s normal to see a deceleration of appreciation, slowing home price growth, as the months go by.

To see what is really happening in the Delaware county area, please check out the chart below.

DELAWARE COUNTY, MEDIAN SALES PRICE, SINGLE FAMILY HOMES
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% $400,000 ($3,500) -0.9%
Apr $400,000 $415,000 $15,000 3.8% $416,000 $1,000 0.2%
May $400,000 $427,000 $27,000 6.8% $480,758 $53,758 12.6%
Jun $410,000 $451,500 $41,500 10.1% $475,000 $23,500 5.2%
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%
YTD, June $378,992 $405,500 $26,508 7.0% $422,793 $17,293 4.3%

As shown by the data in blue, for ten of the twelve months in 2022, median prices were higher in the Delaware county area than in the same month in 2021.

This same trend was continued in 2023 for five  of the first six months.

Those data points tell us that the real estate market in the Delawre conty area is stable and strong!!!!

A headline seeker could say that in the first six months of 2022, prices went up by 7% and only 4.3% in 2023. That is called a deceleration of appreciation, but it is still appreciation.

HERE IS WHAT YOU NEED TO DO TO MAKE THE RIGHT DECISION FOR YOU

  • Buyers: If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices are stable and increasing is reasuring. It also gives you the opportunity to own something that usually becomes more valuable as time goes on.
  • Sellers: If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, this should also reassure you. Even with the recent increase in mortgage rates, teaming with a real estate agent and getting your house on the market is the logical and smartest thing to do.
  • 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. I would like to become that real estate expert upon whom you can lean.
  • 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
  • There will be very unsettling headlines around the housing market this year. Most will be wrong.
  • Let’s connect so you have an expert on your side to help you keep everything in proper perspective.

MEDIA, RADNOR, MARPLE NEWTOWN, GARNET VALLEY, SPRINGFIELD REAL ESTATE, REALLY STRONG

Comparing real estate metrics from one year to another can be challenging in a normal housing market. That’s due to possible variability in the market making the comparison less meaningful or accurate. Unpredictable events can have a significant impact on the circumstances and outcomes being compared.

Comparing this year’s numbers to the two ‘unicorn’ years we just experienced is almost worthless. By ‘unicorn,’ what people are trying to convey is this:

“Something that is greatly desired but difficult or impossible to find.”

The pandemic profoundly changed real estate in 2020, 2021 and 2022. Some effects are still being felt, but things are normal enough now so that we can see some local and national trends.  Here are some of the pieces.

  • Waves of first-time and second-home buyers entered the market.
  • Already low mortgage rates were driven to historic lows.
  • The forbearance plan all but eliminated foreclosures.
  • Home values reached appreciation levels never seen before.
  • The demand for a home of our own skyrocketed, and people needed a home office and big backyard.

It was a market that forever had been “greatly desired but difficult or impossible to find.” A ‘unicorn’ year.

Now, things are getting back to normal. The ‘unicorns’ have galloped off.

Comparing today’s market to those years now makes some sense. Here are three examples of national trends and how our local market compares (and is more desirable)

Buyer Demand 

If you look at the headlines, you’d think there aren’t any buyers out there. We still sell over 10,000 houses a day in the United States. Of course, buyer demand is down from the two ‘unicorn’ years. But, according to ShowingTime, if we compare it to normal years (2017-2019), we can see that buyer activity is still strong (see graph below):

So showing activity is up nationallly but what about local? An even better measure of buyer interest is how long it takes a house to get sold. Right now the median days on market in our area is only 6.  That compares to 37 days on  market just a few years ago.

What this means for sellers is that if you have a house that you want to get on the market (make that move up buy perhaps?), you can  be assured that your house will sell quickly if it is priced correctly and marketed well.

Home Prices

We can’t compare today’s home price increases to the last couple of years. According to Freddie Mac, 2020 and 2021 each had historic appreciation numbers. Here’s a graph also showing the more normal years (2017-2019):

We can see that we’re returning to more normal home value increases. There were several months of minimal depreciation in the second half of 2022. However, according to Fannie Mae, the market has returned to more normal appreciation in the first quarter of this year.

Again, how does this compare to our area. From the above you can see  that the national average for home appreciation was 5%.  Check out the below chart for the local details.

Median prices were up by 6.4% in 2022; moreover, the trend continued into 2023 with year over year increases in 3 of the first 5 months.

What this means for buyers, both first time and move up, is that if you make that purchase now,  you can be reasonably sure that your house will only increase in value in the future.

I would not let the recent rise in interest rates discourage you from making a move.  I doubt if we will ever see mortgage rates in the 3-4% range again. If you put off making a move, the most likely effect is  that you will  miss out on several months (or perhaps years) of price appreciation.

WALLINGFORD SWARTHMORE, ROSE TREE MEDIA, RADNOR,
MARPLE NEWTOWN, SPRINGFIELD MEDIAN SALES PRICE
SINGLE FAMILY, DETACHED
Month Sale Price Sale Price Sale Price
2021 2022 2023
Jan $500,000 $552,500 $616,376
Feb $500,000 $500,000 $733,500
Mar $575,000 $552,500 $550,000
Apr $526,000 $527,500 $540,000
May $563,500 $621,000 $600,000
Jun $582,500 $585,000
Jul $589,450 $587,500
Aug $552,500 $671,900
Sep $536,500 $607,500
Oct $537,500 $570,000
Nov $531,000 $623,000
Dec $500,000 $510,000
Annual $541,163 $575,700
Annual Difference $34,538
Annual % Diff 6.4%
YTD  Thru May, 22 to 23 $550,700 $607,975
Diff Thru May, 22 to 23 $57,275
% Diff Thru May, 22 to 23 10.4%

Foreclosures 

There have already been some startling headlines about the percentage increases in foreclosure filings. Of course, the percentages will be up. They are increases over historically low foreclosure rates. Here’s a graph with information from ATTOM, a property data provider:

There will be an increase over the numbers of the last three years now that the moratorium on foreclosures has ended. There are homeowners who lose their home to foreclosure every year, and it’s heartbreaking for those families. But, if we put the current numbers into perspective, we’ll realize that we’re actually going back to the normal filings from 2017-2019.

I have only anecdotal  data on local foreclosures.  That comes from associates in the mortgage lending busness. They indicate that they see nothing unusual.

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. I would like to become that real estate expert upon whom you can lean.
  • 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
  • There will be very unsettling headlines around the housing market this year. Most will come from inappropriate comparisons to the ‘unicorn’ years. Let’s connect so you have an expert on your side to help you keep everything in proper perspective.
  • If you would like to listen to our recent 12 minute podcast on this topic, please just click the below hyperlink, 
    bit.ly/Local_Really_Strong_Real_Estate_Market

WEST CHESTER, DOWNINGTOWN, GREAT VALLEY REAL ESTATE, REALLY STRONG

Comparing real estate metrics from one year to another can be challenging in a normal housing market. That’s due to possible variability in the market making the comparison less meaningful or accurate. Unpredictable events can have a significant impact on the circumstances and outcomes being compared.

Comparing this year’s numbers to the two ‘unicorn’ years we just experienced is almost worthless. By ‘unicorn,’ what people are trying to convey is this:

“Something that is greatly desired but difficult or impossible to find.”

The pandemic profoundly changed real estate in 2020, 2021 and 2022. Some effects are still being felt, but things are normal enough now so that we can see some local and national trends.  Here are some of the pieces.

  • Waves of first-time and second-home buyers entered the market.
  • Already low mortgage rates were driven to historic lows.
  • The forbearance plan all but eliminated foreclosures.
  • Home values reached appreciation levels never seen before.
  • The demand for a home of our own skyrocketed, and people needed a home office and big backyard.

It was a market that forever had been “greatly desired but difficult or impossible to find.” A ‘unicorn’ year.

Now, things are getting back to normal. The ‘unicorns’ have galloped off.

Comparing today’s market to those years now makes some sense. Here are three examples of national trends and how our local market compares (and is more desirable)

Buyer Demand 

If you look at the headlines, you’d think there aren’t any buyers out there. We still sell over 10,000 houses a day in the United States. Of course, buyer demand is down from the two ‘unicorn’ years. But, according to ShowingTime, if we compare it to normal years (2017-2019), we can see that buyer activity is still strong (see graph below):

So showing activity is up nationallly but what about local? An even better measure of buyer interest is how long it takes a house to get sold. Right now the median days on market in our area is only 6.  That compares to 29 days on  market just a few years ago.

What this means for sellers is that if you have a house that you want to get on the market (make that move up buy perhaps?), you can  be assured that your house will sell quickly if it is priced correctly and marketed well.

Home Prices

We can’t compare today’s home price increases to the last couple of years. According to Freddie Mac, 2020 and 2021 each had historic appreciation numbers. Here’s a graph also showing the more normal years (2017-2019):

We can see that we’re returning to more normal home value increases. There were several months of minimal depreciation in the second half of 2022. However, according to Fannie Mae, the market has returned to more normal appreciation in the first quarter of this year.

Again, how does this compare to our area. From the above you can see  that the national average for home appreciation was 5%.  Check out the below chart for the local details.

Median prices were up by 8.6% in 2022; moreover, the trend continued into 2023 with year over year increases in 4 of the first 5 month.

What this means for buyers, both first time and move up, is that if you make that purchase now,  you can be reasonably sure that your house will only increase in value in the future.

I would not let the recent rise in interest rates discourage you from making a move.  I doubt if we will ever see mortgage rates in the 3-4% range again. If you put off making a move, the most likely effect is  that you will  miss out on several months (or perhaps years) of price appreciation.

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

Foreclosures 

There have already been some startling headlines about the percentage increases in foreclosure filings. Of course, the percentages will be up. They are increases over historically low foreclosure rates. Here’s a graph with information from ATTOM, a property data provider:

There will be an increase over the numbers of the last three years now that the moratorium on foreclosures has ended. There are homeowners who lose their home to foreclosure every year, and it’s heartbreaking for those families. But, if we put the current numbers into perspective, we’ll realize that we’re actually going back to the normal filings from 2017-2019.

I have only anecdotal  data on local foreclosures.  That comes from associates in the mortgage lending busness. They indicate that they see nothing unusual.

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
  • There will be very unsettling headlines around the housing market this year. Most will come from inappropriate comparisons to the ‘unicorn’ years. Let’s connect so you have an expert on your side to help you keep everything in proper perspective.
  • If you would like to listen to our recent 12 minute podcast on this topic, please just click the below hyperlink, 
    bit.ly/Local_Really_Strong_Real_Estate_Market

MEDIA, PA: WHY BUYING A HOME PROBABLY MAKES MORE SENSE THAN RENTING

Media, PA: Why Buying a Home Probably Makes More Sense Than Renting

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 MEDIA 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 Media with buying the median priced 2 bedroom detached house. Median rent in Media is about $2,400. Median price for a 2 bedroom detached house is about $370,000.  Down payment and closing costs can be as low as $29,000. Monthly principal and interest would be $2,911. And that never changes for the life of your loan.

No contest you say. Renting saves me $511 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 $506,000; after 20 years to about $714,000 and after 30 years to about $1,008,000. 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

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

DELAWARE COUNTY, ARE LOWER HOME PRICES COMING?

DELAWARE 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 DELAWARE 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 10 of 12 months in 2022.  Up a very healthy 4.8% for the year. The trend continues in 3 of 4 months in 2023. YTD, through April 23 is up 3.1% in 2023

DELAWARE COUNTY, MEDIAN HOME PRICES, SINGLE FAMILY DETACHED, 2021 THROUGH APRIL 20, 2023
Month Sale Price, Median 2021 Sale Price, Median 2022 Sale Price, Median 2023
Jan $359,000 $360,000 $375,000
Feb $335,450 $376,000 $390,000
Mar $369,500 $403,500 $400,000
Apr $400,000 $415,000 $437,500
May $400,000 $427,000
Jun $410,000 $451,500
Jul $425,000 $420,000
Aug $415,000 $430,000
Sep $385,000 $385,000
Oct $400,000 $390,000
Nov $384,900 $410,000
Dec $380,000 $420,000
Annual $388,654 $407,333
Annual Difference $18,679
 % Difference 4.8%
YTD, thru 0420 $388,625 $400,625
Price Difference, YTD thru 4/20/23 $12,000
 % Difference 3.1%

 

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 between 2 and 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 Delaware 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, 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.