Last month we brought up the idea that a downshift may be coming in the market.  While that still may be true, our local market shows no signs of slowing.  In fact, July was one of the strongest months we’ve had in over a decade.  Let’s take a look at the details.

DEMAND:  The records continue with this past july being the best july for number of homes sold in just over 10 years. 2004 was the last time Chester County saw the activity that it saw last month.  770 homes were sold last month compared to 677 from last year. That represents a 12% increase in activity. While there was a slump in activity through July, we have continued to see elevated activity, which leads us to believe that August will be no slouch either.  Only time will tell.

SUPPLY AND INVENTORY ACCUMULATION: Supply continues to mirror last year, however, due to elevated demand, inventory accumulation is a good tick below where it was this time last year. This was similar to last month, but the gap between last year and this year in July is 17%, meaning the supply is 17% lower than it was last year.  The only thing we can say is that the market doesn’t seem to be slowing down.

SOLD TO LIST RATIO: This indicator mirrored, almost exactly, last year at the same time. Year to date, the ratio is at the same level as last year. All this means is that sellers can expect to about 95% of asking price, on average, for their homes. In places that are more active, like Downingtown and West Chester, the ratio increases, in general to as much as 98%.  In certain micro markets, it can be as high as 101%.

RATES: Rates remain steady at around 4%.  There continues to be talks about raising rates, however that’s the same story that’s been said for the last several years.  Our advice is that if you are ready to move, then do it.  You won’t get a better rate than today and who knows what “tomorrow” will bring.

CONCLUSION: The market remains extremely strong.  Despite rumors of a slow down, our local market continues to show signs of strength and health.   There are some government regulation changes that are coming October 1st and that is going to cause a lot of headaches as far as the process is concerned.  It will be more important than ever for consumers to choose the most professional and most experienced agents and lenders they can possibly find.  If you are thinking of moving, please ask about our Preferred client programs and how they can link you up with the best lenders and service providers, as well as provide discounts to you for using our Endorsed providers.