In the West Chester area, home prices are still stable and going up despite what you hear if you’re following the news today. You may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. If we take a year-over-year view, home prices did drop some, but that’s because we’re comparing to a ‘unicorn’ year when prices peaked well beyond the norm.
To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here’s what the national data tells us.
The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally.
Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down (shown in red in the graphs above). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again.
The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening – home prices are rising again. Or in the case of the West Chester area, we never saw a decrease from which we had to recover.
But national trends can have an impact on our local data, so lets see what the national data are showing.
Craig J. Lazzara, Managing Director at S&P Dow Jones Indices, says this about home price trends:
“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.”
Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available homes for the number of people who want to buy them. Even with today’s mortgage rates, there are more people looking to buy than there are homes available for sale.
Mark Fleming, Chief Economist at First American, explains how more demand than supply keeps upward pressure on prices:
“History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices.”
Doug Duncan, Senior VP and Chief Economist at Fannie Mae, states home price growth is exceeding expectations thanks to that high demand:
“. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”
NOW, HERE’S WHAT IS HAPPENING IN THE WEST CHESTER AREA
Please see the below chart for actual sales price data for the last 2 years and 6 months.
| MEDIAN SALES PRICE, WEST CHESTER, DOWNINGTOWN, GREAT VALLEY | |||||||
| Month | Sale Price | Sale Price | Difference | % Diff | Sale Price | Difference | % Diff |
| 2021 | 2022 | 2022-2021 | 2023 | 2023-2022 | |||
| 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% | $662,500 | ($23,100) | -3.4% |
| May | $591,820 | $657,000 | $65,180 | 11.0% | $705,500 | $48,500 | 7.4% |
| Jun | $575,000 | $687,977 | $112,977 | 19.6% | $739,250 | $51,273 | 7.5% |
| 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 | $630,763 | $672,542 | $44,294 | 7.0% | |||
| Highlights: | Year over Year Sales Prices Higher in 10 of 12 months in 2022 | ||||||
| Year over Year Sales Prices Higher in 5 of 6 months in 2023 | |||||||
| Real Estate Prices still very strong in West Chester Area | |||||||
Like I said above, we have never seen a decrease from which we had to recover. And I expect these bullish trends to continue.
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 have bounced back should bring you some relief. 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, it might be a good idea to team up with a real estate agent to list your house. You don’t have to wait any longer because the latest data suggests things are turning in your favor.
- 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.