BREAD BEFORE A STORM…

What’s the bread shelf look like before a snow storm? Pretty bare right? That’s what the local real estate market resembles, as you will see, there isn’t much at all to choose from as far as homes for sale. However, this isn’t necessarily a bad thing. As you will read, the market has “arrived” and we saw tremendous stability established in 2013 and are in a great position to have a solid year in 2014. It’s estimated that values have improved as much as 4% in Chester County and it’s looking like that might be the case again in 2014. Let’s look at the details…

DEMAND: Demand/closed sales in December made an uncharacteristic jump in December, 20% more than last December, which was unexpected. It’s a good sign that the market is carrying a lot of momentum into 2014. Overall, the early numbers are saying we sold almost 1000 more homes in Chester county than last year. The total early number is 6009. It’s likely to go up as numbers are refined. Last year only 5152 homes were sold and 2011 saw only 4296 homes sold. Comparing 2013 to 2011, see’s about a 40% increase in the number of homes sold. That’s a pretty good indicator that the market has “arrived”.

SUPPLY: December, as expected, saw the inventory plummet to a measly 4 months. That means that if no other homes were ever available again, we’d sell out of homes in only 4 months. Combine the seasonal exodus of sellers from the market with the highly active market and that’s how we get the incredibly low amount of inventory. I’ll expand on what that means for both buyers and sellers in the conclusion.

SLPR: (Sale to list price ratio) This stat continues to remain consistent and steady which is great news. The average for 2013 has been just over 94% of asking price. This means that the sellers don’t have to concede much at all in their asking price, as long as it’s set right from the get go and that there is tremendous stability in the market. In many of the more “desirable” area’s the ratio is more around 98%.

INVENTORY ACCUM: As mentioned previously, we only have about 4 months of inventory available. I honestly don’t know when the last time we saw levels that low here in Chester County. My numbers only go back about 6 years on this stat and it’s quite possible and likely we saw it back around 2004. The good news for buyers is that by the end of this month, we expect it to be up, closer to 5 months and probably 6 months by February/March. We actually don’t want inventory levels too low and 6 months is a very good number to shoot for.

CONCLUSION: In conclusion, if you are looking to sell right now, it’s a REALLY great time for it. There are plenty of Buyers out there and you are going to get a great price for your home and you have very little competition, as opposed to waiting until March and April. For buyers – you have to be patient and you have to have a great agent and /or team next you that is going to go the extra mile in making sure you don’t miss out on the next home that meets your needs. If you aren’t seeing a home that meets your needs, and you are being realistic in your expectations, it’s just a waiting game. We would expect you to have to wait at least as much as 2-3 months. It’s hard to tell. In the mean time, rates are predicted to go up. Give us a call if you need expert advice and an inside perspective on the market. We’d love to help.