Suburban Philadelphia Real Estate News

head_left_image

Luxury Rebound In Suburban Philadelphia Real Estate? - Not Yet.

 

Signs of Spring in the Suburban Philadelphia Delaware County Luxury Market? - Not quite yet.

After suffering the financial jolt that really took hold in October last year, it was expected that we would begin to see some clarity as the new administration arrived with fresh faces and new ideas.  Despite having since November to prepare, this clearly has not happened.  This has resulted in a falling financial market, a continued decline in consumer confidence, and no real apparent progress.  Until Washington shows more leadership, the luxury real estate market in particular will probably remain in the doldrums.

The Numbers: In 2008, there were a total of 93 luxury homes sold that settled for $1,000,000 or above in Delaware County Pennsylvania for an average price of $1,585,000.  Only 12 of these home sales occurred in the last quarter of 2008 after the financial markets began to deteriorate.  Since the beginning of 2009, although we expected to see an uptick in activity, we have only had 4 additional home sale settlements.

South Wayne LuxuryNewtown Square LuxuryWayne LuxuryRadnor Luxury

 

 

 

 

 As for Pending properties, there are currently 16 homes under contract with an average list price of $1,559,000.  Of these, ten were under contract prior to October 1 and all ten are new construction homes scheduled to close at various points into 2010.  Of the remaining six homes, four received contracts in 2009.  In a key shift away from new construction, five of these 6 properties were existing homes.  Based on the 4 settlements above and 5 additional properties scheduled to close before the end of March, we are looking at 9 total sales in the first quarter 2009 vs 18 sales in the first quarter of 2008 - down 50%

Today there remain 156 homes currently listed on the market with an average price of $1,756,000.  These homes have an average of 199 days on the market, up slightly from 195 in the December update.  Based on the current sales pattern, we have well over a years' worth of inventory on the market.

The Bottom Line: As I mentioned in my last luxury update, we are well below a "normal" sales rate, and as a result there must be rising pent up demand.  The problem remains, however, that with the current financial uncertainties overhanging the market, there is no real catalyst to encourage people to make a move now.  Without some clear direction, people will tend to hold off on making major decisions.  With the large existing inventory, this could lead to additional price deterioration in the near-mid term, but this could also change quickly depending on the moves coming out of Washington.  At this time the market remains basically in a holding pattern.

(All information is from the TrendMLS System and is believed accurate but not guaranteed)

Comment balloon 2 commentsDavid Henke • February 24 2009 09:51PM
Luxury Rebound In Suburban Philadelphia Real Estate? - Not Yet.
share
Signs of Spring in the Suburban Philadelphia Delaware County Luxury Market? - Not quite yet. After suffering the financial jolt that really took hold in October last year, it was expected that we would begin to see some clarity as the… more
Wallingford PA SEPTA R3 Regional Rail Station
share
Welcome to the Wallingford Station on SEPTA 's R3 Regional Rail Line connecting Center City Philadelphia Pennsylvania with Media/Elwyn in Delaware County. This is the only R3 Regional Rail stop in Nether Providence PA and is one stop west of… more
Darby Borough - Potential Cracks in Suburban Philadelphia Market
share
Darby Borough PA has been one of the most stable real estate locations in Suburban Philadelphia and Delaware County. It is also one of the least expensive areas appealing to a wide variety of home buyers as well as to investors looking for solid… more
Get the Shovel! - Garden Resources in Suburban Philadelphia PA
share
Spring is on its way and now is the time to plan and prepare for the new season! Whether it is for your garden, yard, or another property, there are many resources at your fingertips in Delaware County PA. If you are considering a sale of… more
Fairfax Rd Foreclosure in Drexel Hill Upper Darby PA
share
Note: Property Now Has Accepted Agreement Welcome back to Upper Darby Now we are looking at a property that is about the same size as Union Av but needs more work throughout. This foreclosure is located just north of Lansdowne… more
Newtown Square PA Reminders:
share
Earlier this week, I had the chance to stop by the Newtown Square Township offices and wanted to pass on these reminders from the township: Recycling continues to be a hot topic and recycling is mandatory in Newtown Township. All paper, glass,… more
Marcus Hook PA Station - SEPTA R2 Regional Rail
share
Greetings from Marcus Hook Pennsylvania. Incorporated on March 7, 1892, Marcus Hook is one of the original largely industrial Delaware River towns just south west of Philadelphia. Here we are visiting the Marcus Hook PA SEPTA R2 Regional… more
Lawrence Park Delaware County Remains a Great Option
share
Since development began in the 1950s, Lawrence Park has remained one of the most popular communities in Marple Township Delaware County PA. It is situated just east of Lawrence Road, north of Sproul Road, and west of the Blue Route, I-476… more
Folcroft Station SEPTA R2 Regional Rail
share
Today we're visiting the Folcroft Borough Station of the SEPTA R2 Regional Rail Line connecting Center City Philadelphia with Newark Delaware. Folcroft is a great community incorporated in 1922 and conveniently located in southeastern… more
Valley Rd Foreclosure in Paoli Tredyffrin Township PA
share
Note: Property now has accepted agreement. Now we move up quite a bit in price level from the Union Ave Lansdowne Upper Darby foreclosure As I mentioned when looking at the Union property, foreclosures do come in all price ranges and… more