Confused About HOUSING PRICES IN CHESTER COUNTY? LET ME BE YOUR RESOURCE and clear away the confusion!!!
If you’re thinking about buying or selling a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, explains:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, says:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local real estate advisor.
A trusted expert is your best resource to understand what’s happening at the national and local levels. I would appreciate a chance to interview for the job as your trusted expert. No cost or obligation of course. I will debunk the headlines using data you can trust. And I will provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.
Together, we will use all of that information to make the best possible decision for you.
Here are some of the data points that can help you to make your decision,
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where I can come in.
Is now a good time to either buy or sell a single family detached house in Chester county? My answer is yes.
Here are data points about the Chester county market which explain why I feel that way.
Recent price trends: Median sales price peaked at $600,000 in June, 2022. Since then prices are down to a median of $546,500 in November, decline of 9%. Cause for panic? Not in my opinion. Sales prices typically peak in mid Summer when most buyers want to get their deals done before the kids go back to school. A typical decline from Juneish to Novemberish is about 5 to 10%. This year follows that pattern. Year to date, median selling price is $540,000, up 8.2% from 2021 at $499,000.
Housing Inventory: Chester county inventory has been mostly between 3 and 6 months for the last two years. Below six months indicates there are more buyers than sellers which is bullish for prices. November inventory was only 2 months. This is very bullish for prices.
Median Days on Market: This indicates how long it will probably take to get an acceptable offer on your house, once you get it on the market. 30 days is about right for a normal market. For the last two years it has been about 6-7 days which indicates very high demand and that is bullish for prices. In November, it went up to 13 days which is still speedy and indicates high demand.
Active Listings; In November, 2021 there were 1,632 active listings for sale. In November 2022, there were 816, a drop of 50%. Not sure why this happened.
Number of Sales: November 2022 we had 264 sales, compared to 419 in November 2021. That is a drop of 37% and indicates a much slower market.
Sales Price as a % of Original Price: For the last two years, most sales prices have been above the asking price. In November, that dipped below 100% for the first time since at least 2020. Ratio was 98.8% which still indicates a strong buyer demand.
Why is this a good time to buy? A cross section of the key market variables tells me that price increases will still happen, but they are slowing down. That gives buyers a little more leverage.
Why is this a good time to sell? If you are needing a bigger house in a different area, I think you can still be confident that prices will continue to increase, but at a slower rate. This is not 2008 and chances of losing a lot of your equity are very small.
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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.