THE FIRE STILL BURNS. . .
The market continues to move at a very rapid pace in most parts of Chester County, appraisals continue to be an issue, rates continue to be low. For how long, who knows. Let’s look at the details…
DEMAND: Demand has been a good tick above normal this year, mostly, as we’ve said, because prices are coming up and folks are able to make the move happen that they’ve put off for a small handful of years. Demand remains strong, and we don’t expect that to change. For seller’s, it’s a great thing. For buyers, it’s very tough, between slim pickings and very competitive offer situations and also Appraisals continuing to be very difficult and in some cases, very wrong.
SUPPLY AND INVENTORY ACCUMULATION: Despite the increase in demand, inventory continues to follow last years numbers. What isn’t seen by these charts is that a slight bit more people have listed their homes for sale over last year. This number is not incredibly significant, but that is why we can maintain the same inventory levels and have elevated sales.
SOLD TO LIST RATIO: This ratio has been more volatile than last year, mostly because higher priced homes are selling, and for a lower ratio than the average price, so it’s having an heavier effect on the numbers. Overall, homes are selling for a very high rate of what they are asking, especially in the Downingtown, West chester and Great Valley areas.
RATES: Rates continue around 4% however, we keep hearing that they are going up. Only time will tell. If you want to move, have the means to do so, you can certainly get a great rate NOW. No one can predict what the rates will be in the future. And remember, the rates are the “X” factor. 0.5% difference will easily knock $10,000k off what you can afford, or add it if they go down.
CONCLUSION: Not much different than last month. The market is amazing and the market completely SUCKS all at the same time. If you are selling a home, as long as you have the price right for the condition and location, getting the home under contract shouldn’t take very much. HOWEVER, getting from the contract to closing has continued to get harder and HARDER, which is where our (The Chris & Caleb Team) expertise really shine.
In fact, starting on August 1st, new government regulations are going to make the processes even harder, at least for the transition time. We won’t get into the nitty gritty here, but it will suffice to say that those who are not fully ready for it will create a ton of havoc and stress for those they serve. We are already preparing to make sure we are ONLY working with companies that are fully ready for it and that we have adjusted our systems to make sure our clients have no clue that anything changed.
