A Mid-Year Review for Chester County Real Estate

By Ryan Dosen

 

The first half of the year is in the books and the Chester County real estate market appears to be doing pretty well. The sales numbers for Keller Williams Brandywine Valley are up significantly from last year and my real estate team just had its biggest month on record. However, our business represents a relatively-small-but-growing subsection of the entire market. And you know what they say about appearances. They can be deceiving. So let’s not make any assumptions. Let’s take a step back and look at the mid-year numbers for Chester County’s real estate market.

 

Home Settlements Up 12.3 Percent

Suburban West Realtors Association reports that Chester County year-to-date home settlements are up 12.3 percent so far in 2015. June home settlements in Chester County were actually up 13.4 percent from last June’s numbers.

June was Chester County’s biggest month for home settlements in 2014, with 677 total units changing hands. This June easily topped last year’s high and the market is well ahead of last year’s overall pace.

 

Pending Home Sales Up 17.9 Percent

According to Suburban West, Chester County pending home sales (homes that are under contract, but not yet settled) for the month of June were 12.7 percent higher in 2015 than in 2014. The year-to-date pending home sales numbers are even better. Pending home sales in Chester County for 2015 are almost 18 percent higher than they were at the same time last year.

With the number of homes under contract for settlement being significantly higher this year, we will continue to see year-over-year growth for the Chester County real estate market.

 

Average Days on the Market Down

Homes are also sitting on the market for less time in 2015. Last June, homes were sitting on the market in Chester County for an average of around 55 days. This June, that number has dropped to around 40 days. Interestingly, homes were sitting on the market for around 90 days back just a few months ago in March. Since the market took off this spring, the days on market are way down and even lower than last year’s lows. Obviously, homes flying off the shelves at a faster rate is yet another positive sign for the real estate market.

 

Inventories High, But Still Low(?)

Home inventories in Chester County have actually returned to the levels seen in 2014. Inventories sat in the 2800-3000 unit range last summer and Suburban West reports that this June’s inventory numbers were actually right around 2900. So, why is everyone complaining about low inventories? Simple. Increased demand. More homes are being scooped up by more buyers this year, creating serious competition for homes that are properly priced. It is still common to see accurately-priced homes wind up in a bidding war. Especially when those homes are in good condition and in popular neighborhoods.

Remember: It’s tempting to want to price your home high “just in case someone comes along and falls in love with it and has to have it.” While this is always a possibility, it is not a probability, and this is still not a full bore seller’s market.  People are lining up to buy homes. People are not lining up overpay for homes. However, if you price your home correctly, it very easily could end up in a bidding war, creating a situation much more likely to result in an emotional decision to overpay. And we haven’t even started talking about the appraisal or carrying cost issues with overpricing a home.

 

 

– Ryan Dosen manages The Wayne Megill Real Estate Team of Keller Williams – Brandywine Valley in West Chester, PA. Contact Ryan Dosen to inquire about buyer or seller representation or to learn more about a career in real estate by emailing ryan@waynemegillteam.com or calling 610-399-0338.

 

This article was published by 21st Century Media and the Daily Local News (West Chester, PA). To read this article on the the newspaper’s site, please visit the Daily Local News.

To view all of Ryan Dosen’s 21st Century Media real estate columns, visit http://www.dailylocal.com/search?text=dosen.