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WEALTHY IN WEST CHESTER, PA; OWNING YOUR HOME MAKES ALL THE DIFFERENCE

WEALTHY IN WEST CHESTER, PA; OWNING YOUR HOME MAKES ALL THE DIFFERENCE

If you’re a resident of the charming town of West Chester, PA, you’re probably aware of the unique blend of historic beauty and modern convenience that makes this place so special. Nestled in the heart of Chester County, West Chester is not just a great place to live but also a smart place to invest in homeownership. In this article, we’ll explore how owning your home in West Chester is the key strategy for most people for building wealth in our community.

Why West Chester, PA is a Wealth-Building Haven

West Chester, PA, is more than just a picturesque town; it’s a community that offers a wealth of opportunities for those who choose to call it home. Here are some compelling reasons why owning a piece of West Chester real estate can set you on the path to financial success:

Steady Property Appreciation: West Chester’s real estate market has shown consistent growth over the years. Owning a home here means you’re likely to see your property’s value appreciate steadily over time, providing you with a solid return on your investment. For example, please check out this chart to show how your wealth would have built up in you bought the median priced home just five years ago.

CHESTER COUNTY, ESTIMATED EQUITY GROWTH, LAST FIVE YEARS

Purchase	Sale Price	Down Payment	Estimated Total	Price Growth	Estimated	Total Equity	Equity, %
Year	Median	at 3.5%	Closing Costs	Equity to 12/22	Pay Down		of Sale Price

2017	$380,000	$13,300	$30,400	$160,000	$63,333	$236,633	62%
2018	$399,000	$13,965	$31,920	$141,000	$53,200	$208,165	52%
2019	$405,000	$14,175	$32,400	$135,000	$40,500	$189,675	47%
2020	$440,000	$15,400	$35,200	$100,000	$29,333	$144,733	33%
2021	$499,000	$17,465	$39,920	$41,000	$16,633	$75,098	15%
2022	$540,000	$18,900	$43,200	$0	$0	$18,900	4%

Take a look at the top row, in bold blue italics. If you bought the median priced house in 2017 for $380,000 and a minimum down payment of 3.5%, your total closing costs would have been about $30,400. After 5 years, that same median priced house is priced at $540,000. That means your equity just due to the value increase is $160,000. You have also been paying your mortgage down for 5 years resulting in a balance reduction of $63,333. Your total equity then comes to $236,633 or 62% of the initial cost of the house. Your investment of $30,400 grew to $236,633 which is a 778% gain.

That is why real estate has been ranked as the #1 investment opportunity in the United States for several years running.

Local Economy: West Chester boasts a strong local economy with diverse industries, including education (West Chester University), healthcare, and technology. With numerous employment opportunities in the area, you’ll have the financial stability needed to build wealth through homeownership.

Historic Charm and Community Spirit: West Chester is known for its vibrant community and historic charm. This attracts not only residents but also tourists.

Educational Opportunities: The presence of West Chester University adds to the town’s allure. Whether you’re looking to further your education or invest in properties for student housing, the university’s presence can be a significant advantage.

Higher Interest Rates: True, interest rates have risen dramatically from about 3% to as high as 8%. However, even with this headwind, home prices are predicted to keep on rising so it’s still an opportune time to buy a home in West Chester. Your payments will be higher but you still start building equity right away.

Tax Benefits: As a homeowner in West Chester, you can benefit from various tax incentives and deductions, which can help you save money and grow your wealth over time.

Community Involvement: Being part of the West Chester community means you have the opportunity to engage in local events and initiatives, which can enhance your sense of belonging and connection to your neighborhood.

Steps to Owning Your Home in West Chester

Now that you understand the potential wealth-building benefits of owning a home in West Chester, it’s time to take action. Here are some steps to help you get started on your homeownership journey:

Financial Preparation: Assess your financial situation and create a budget to determine how much you can comfortably afford for your new home. Consider saving for a down payment, as a larger down payment can lead to lower monthly mortgage payments.

Research Local Real Estate: Work with a local real estate agent who knows the West Chester market inside and out. They can help you find the right neighborhood and property that fits your budget and goals.

Mortgage Pre-Approval: Get pre-approved for a mortgage to show sellers that you’re a serious buyer. This can give you a competitive edge in a hot market.

Home Inspection: Once you find a property you love, work with your realtor to decide if you need to inspect the house or if competitive conditions dictate that you should make your offer with no inspection.

Closing the Deal: Work closely with your real estate agent and lender to complete the necessary paperwork and finalize your purchase.

By following these steps and embracing the wealth-building opportunities that West Chester, PA, has to offer, you can secure your financial future while enjoying all the benefits of living in this wonderful community. Owning your home in West Chester isn’t just about having a place to live—it’s about investing in your future and building wealth right here in our beautiful town. Don’t miss out on the opportunity to make West Chester, PA, your home and your key to financial success.

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.
Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
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.
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. Again we can do that in person or on the computer.
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 clear opportunities for sellers right now. 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 on Zoom, in person or on the phone at 484 574 4088.

MEDIA, PA AREA – WHY OWNING A HOME IS A SMART INVESTMENT

MEDIA, PA AREA – WHY OWNING A HOME IS A SMART INVESTMENT

As the world comes out of the COVID-19 pandemic, many people are looking to invest their money in ways that are safe and secure. One investment that experts predict will see positive growth is homeownership. In this blog post, we’ll explore why owning a home is a smart investment in 2023, and we’ll look at some of the key factors driving positive growth in home prices. We’ll also examine the benefits of owning a home, including the potential for appreciation and long-term equity growth, tax benefits, and more. Finally, we’ll offer some practical tips for successful homeownership and explain how growing home equity can positively affect your net worth.

Key Factors Driving Positive Growth in Home Prices

The housing market is constantly fluctuating, and this year has been no exception. Earlier forecasts predicted that prices would remain stagnant or even fall, but recent data from six organizations and a survey of 100 economists, investment strategists, and housing market analysts suggest otherwise. The results indicate that prices will see a positive growth of around 3.3%. It just proves that sometimes, even the experts’ predictions can be wrong. The good news is that the market is expected to remain steady and even outperform previous expectations. So, whether you’re a buyer, seller or just interested in the housing market, it’s always good to keep an eye on the trends and be prepared for any changes that might come your way.

Why Is This So? Two Reasons:

There are few homes for sale and
There are more buyers than sellers which means that homes will sell in about a week if they are properly marketed and priced.

Benefits of Owning a Home

Owning a home isn’t just about having somewhere to live. It also offers significant financial benefits. For example, you can deduct your mortgage interest and property taxes from your federal income taxes, resulting in significant savings. Additionally, owning a home offers the potential for appreciation and long-term equity growth. In other words, as your home increases in value over time, your net worth will increase as well. Owning a home also provides a sense of security and stability, as you have control over your living space and don’t have to worry about a landlord raising your rent or asking you to move out.

How Home Equity Affects Net Worth

Home equity is the difference between the current market value of your home and the amount you owe on your mortgage. As you pay down your mortgage and your home increases in value, your home equity increases as well. This can positively affect your net worth, which is the total value of your assets (including your home) minus your liabilities (such as your mortgage and other debts). For example, if your home increases in value by $50,000 over five years, and you pay off $20,000 of your mortgage during that time, your net worth will have increased by $70,000. As you can see, growing your home equity is an excellent way to increase your net worth over time.

For real live examples, check out this chart of median sales prices in the Media area:

MEDIAN SALES PRICE, MEDIA AREA, SINGLE FAMILY

Primary Year	Sale Price, Median	Annual % Change	Cumulative % Change	Equity Buildup.
2014	$429,900
2015	$438,500	2.0%	2.0%	$8,600
2016	$460,000	4.9%	7.0%	$30,100
2017	$475,000	3.3%	10.5%	$45,100
2018	$489,900	3.1%	14.0%	$60,000
2019	$510,000	4.1%	18.6%	$80,100
2020	$540,000	5.9%	25.6%	$110,100
2021	$634,500	17.5%	47.6%	$204,600
2022	$685,000	8.0%	59.3%	$255,100
2023	$705,000	2.9%	64.0%	$275,100

Wallingford Swarthmore, Rose Tree Media, Radnor, Garnet Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

In nine years after buying the median priced house in the Media area, the equity build up from value increases alone is $275,100.

And that performance is also very safe. I also see this trend continuing over time.

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.
Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
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.
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. Again we can do that in person or on the computer.
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 right now. 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 OWNING A HOME IS A SMART INVESTMENT

WEST CHESTER, PA – WHY OWNING A HOME IS A SMART INVESTMENT

Key Factors Driving Positive Growth in Home Prices

Why Is This So? Two Reasons:

There are few homes for sale and
There are more buyers than sellers which means that homes will sell in about a week if they are properly marketed and priced.

Benefits of Owning a Home

How Home Equity Affects Net Worth

For real live examples, check out this chart of median sales prices in the West Chester area:

MEDIAN SALES PRICE, WEST CHESTER AREA, SINGLE FAMILY

Primary Year	Sale Price, Median	Annual % Change	Cumulative % Change	Equity Buildup.
2014	$415,000
2015	$417,500	0.6%	0.6%	$2,500
2016	$423,500	1.4%	2.0%	$8,500
2017	$441,000	4.1%	6.3%	$26,000
2018	$469,900	6.6%	13.2%	$54,900
2019	$480,000	2.1%	15.7%	$65,000
2020	$510,000	6.3%	22.9%	$95,000
2021	$580,000	13.7%	39.8%	$165,000
2022	$640,000	10.3%	54.2%	$225,000
2023	$693,000	8.3%	67.0%	$278,000

West Chester, Downingtown and Great Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

In nine years after buying the median priced house in the West Chester area, the equity build up from value increases alone is $278,000.

And that performance is also very safe. I also see this trend continuing over time.

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.
Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
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.
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. Again we can do that in person or on the computer.
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 right now. 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.

OWN YOUR HOME IN WESTCHESTER AREA, MAKE LOTS OF MONEY

Call to Action – if you would like to chat about what is right for you, just call or text to 484 574 4088 or email to john@johnherreid.com

• Homeownership has yielded substantial long-term benefits over the last five and 30 year periods, with nationwide averages of 57% and 297% price growth, respectively.

• Recent forecasts projecting home prices to crash in 2023 proved false, as prices experienced only slight declines before rebounding quickly.

• Experts project that home prices will continue to rise for years to come.

• Homeowners who purchased property 30+ years ago are still reaping the benefits of their decision.

Long-term benefits of homeownership extend beyond mere financial gains. For instance, homeowners often experience an increased sense of stability and security, as they are free from the unpredictable conditions of the rental market. They have control over their living environment, with the freedom to renovate or make changes to their property as they see fit. Homes often become long-term investments that can be passed down to future generations, fostering a sense of family heritage and continuity. Lastly, homeownership often triggers community involvement, as homeowners are more likely to invest time and effort into their neighborhood, enhancing the communal experience for everyone.

For a snapshot of building your wealth in Chester county, consider the below chart of median sales price of single family homes starting in 2014:

MEDIAN SALES PRICE, WEST CHESTER AREA, SINGLE FAMILY

Primary Year	Sale Price, Median	Annual % Change	Cumulative % Change	Equity Buildup.
2014	$415,000
2015	$417,500	0.6%	0.6%	$2,500
2016	$423,500	1.4%	2.0%	$8,500
2017	$441,000	4.1%	6.3%	$26,000
2018	$469,900	6.6%	13.2%	$54,900
2019	$480,000	2.1%	15.7%	$65,000
2020	$510,000	6.3%	22.9%	$95,000
2021	$580,000	13.7%	39.8%	$165,000
2022	$640,000	10.3%	54.2%	$225,000
2023	$693,000	8.3%	67.0%	$278,000

West Chester, Downingtown and Great Valley School Districts
All Positive Years since 2014
Trend Expected to Continue

Bottom line, just the growth in home value increases family wealth by 67%. Adding to this would be the impact of reducing the outstanding balance on the mortgage. That would come to about $50,000 at a 7% interest rate after 9 years.

Homeownership is not just an economic decision; it also taps into the emotional spectrum of humans. It provides a sense of belonging and autonomy, contributing significantly to one’s emotional wellbeing. Owning a home serves as a source of pride and accomplishment, boosting self-esteem. This emotional connection is further deepened when homeowners transform their property into a personal sanctuary, reflecting their taste, lifestyle, and experiences. The freedom to decorate and rearrange without limitations conveys a sense of control, enhancing emotional stability. Moreover, homeownership often cultivates invaluable relationships with neighbors, enriching social and emotional life. In essence, a house is not merely a physical structure, but an emotional hub imbued with memories, warmth, and a sense of identity.

From a financial perspective, homeownership can be perceived as a robust investment strategy offering both short-term and long-term benefits. In the short-term, homeowners may enjoy tax benefits, as mortgage interest and property tax payments are often tax-deductible. Additionally, a fixed-rate mortgage ensures predictable monthly housing costs, providing homeowners with financial certainty compared to renters who may face unexpected rent increases.

As you can see from the above, in the long-term, homeownership can lead to significant wealth accumulation. As homeowners make mortgage payments over time, they build equity in their homes—a valuable asset that can be used to secure future credit or fund significant expenses. Moreover, homes generally appreciate in value over time, potentially yielding substantial returns when the property is sold. It’s crucial to remember that while homeownership has the potential for significant financial rewards, it also comes with financial responsibilities such as maintenance costs and property taxes. Hence, a well-informed, balanced approach to homeownership is essential to optimize its impact on personal finances.

Homeownership significantly contributes to economic growth and stability. It stimulates demand for goods and services as homeowners usually invest in home improvements and regular maintenance, thereby creating job opportunities in construction, retail, and other related industries. A robust housing market can also lead to increased property tax revenues for local governments, which can be reinvested into community development. Additionally, the ability to borrow against home equity can spur consumer spending, driving economic expansion. Furthermore, homeownership fosters a sense of stability and community cohesion, which can lead to improved neighborhood conditions and increased property values, benefiting both individuals and the broader economy.

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.
Let’s connect on the computer and have a virtual meeting. That is a great way to learn and see if I am the person you would like to do business with. Just call or text to 484-574-4088 or email to john@johnherreid.com
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.
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. Again we can do that in person or on the computer.
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 right now. 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 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 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.”

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)