Luxury Home sales in Delaware County PA have continued to maintain their leisurely pace as we head into the summer.
As we have seen in many areas of the county, the Luxury Home sales rate (those homes listed for $1,000,000+) peaked in 2007 with 132 closed home sales with an average price of $1,737,000. Average pricing has remained relatively consistent from 2003 through 2008 with pricing ranging from a low of $1,642,000 in 2006 to a high of $1,758,000 in 2004. The actual highest individual home price peaked in 2005 with one $5,000,000 sale. Since then we have seen the top price decline to $4,250,000 in 2006, $3,799,000 in 2007, $3,300,000 in 2008, and $2,200,000 so far this year.
Year to date, we have seen 19 completed sales at an average final price of $1,836,000, a slight price increase from the average seen in prior years. In addition, there are 24 homes pending with an average list price of $1,516,000 so the average sold price would be expected to move down. At this sales rate, it appears that we can expect another decline from the 93 completed home sales in 2008. There are an additional 167 homes currently on the market with 5 listed for over $5,000,000 and with the highest two properties listed for over $9,000,000; both are located in Radnor Township. If we maintain the current sales pace, there is an almost 2 year supply of homes now on the market.
Overall, it appears that new home construction continues to be favored in these price ranges. Nine of the homes settled year to date are new construction and 11 of the pending properties are also new construction. Of the additional 167 homes currently on the market, 68 are listed as new construction. Luxury buyers appear to continue to appreciate the flexibility and convenience of the new construction opportunities.
Bottom Line: Although the luxury home market activity has actually increased a bit from the extremely slow pace of the fourth quarter, economic and financing issues appear to continue to weigh heavily on the market.
As always, if you have any questions or need any additional information on any of the properties available, please do not hesitate to contact me anytime.
(All statistics are from the TrendMLS System and believed accurate but not guaranteed.)