Happy St Patrick's Day!
Today we hit an equilibrium where the number of homes settled to date equals the number of homes pending at 560 properties. This in itself carries no particular significance except in relation to past experience. In 2010 we hit this point on April 29 when the numbers equaled 1152 properties.
The implication here is a lack of buying activity. Compare:
Year: Homes on the Market | Homes under Contract | Homes Sold
2010: :3208 794 578
2011: :3576 560 560
Change: +11.5% -29% -3%
If you simply add the Homes on the Market to the Homes Under Contract, the totals are within 3% of each other (4002 vs 4136) The lack of buyers putting homes under contract is the only difference.
Positive: There are several positive implications here. From a seller's perspective, the need/desire to sell has remained fairly constant from last year as overall available homes has remained fairly steady. This could moderate pricing pressure. From a buyer's perspective there is an increase in available inventory/choices and you may have a bit more time to consider your move.
Negative: If the need to sell overcomes the buyer demand, prices could easily retreat further.
Clearly we continue to be in a holding/weaker market as buyers and sellers weigh the implications of the overall economy, potential conflicts/resulting rise in energy prices, and the impacts of the problems currently happening in Japan. The result is a market consisting of lower activity with fewer but motivated buyers and sellers.
With the continuing low interest rates and strong inventory, this continues to be a great time to buy, but this could change very quickly. If the conflicts in the Middle East are resolved, energy prices moderate, and Japan stabilizes, there continues to be pent up demand that could quickly reduce the existing inventory, firm prices, and raise interest rates.
David Henke
Long & Foster Real Estate Inc – Newtown Square,PA/Bear, DE
Office: 610-225-7400/Cell: 610-618-0808
www.DelawarePAHomes.com
One of the larger complexes is located in Chester Heights. Built between 1989 and 1993, Darlington Woods is located just off Route 1 north of its intersection with Valley Brook Road. The 400+ town-homes come in a wide variety of spacious 2 and 3 bedroom units in both 1 and 2 story designs.
Currently there are 6 units on the market with an average list price of $262,000 and 10 homes have been sold year to date with an average sales price of $240,000. Although the sales activity has declined slightly, this is one of the few places where pricing has remained steady with the average sales prices staying between $232,000 and $242,000 since 2005.
These units are on average a bit less expensive. The current average list price is $236,000 with an additional 5 units now under contract at an average $206,000 list price. The average price and sales activity both reached a peak in 2006 with 27 sales at an average $224,000 final sales price. Since then sales dropped to 13 units in 2007 at an average price of $219,000, the to 17 units at $222,000 in 2008, and finally 6 units year-to-date 2009 with an average sales price of $205,000.
This complex, built in 1972, has a variety of 1, 2, and 3 bedroom units in nice low rise buildings set on rolling hillsides. They also have their own swimming pool and tennis courts.
Prices rose quickly until there were 22 sales at an average price of $161,000 in 2005. Since then, 16 homes sold in 2006 for $170,000, 17 homes in 2007 for $165,000, and 16 homes sold in 2008 for an average of $166,000. These prices can vary quite a bit due to the mix of 1, 2, and 3, bedroom units each year.
