Suburban Philadelphia Real Estate News

The Luxury Home Market continues its slow pace as we head into the traditional 2010 sales season.

There have been many changes in the market since our last update in June but most of those have impacted the market at lower price points.  The primary sales activity continues to be first time buyers or lower move up buyers as people continue to take advantage of the 2009 and now 2010 Homebuyer Tax Credits.  At the higher price points, activity is still constrained by the availability of loans with prices remaining fairly flat or trending lower.

In the luxury market, sales have continued to drift.  In 2009 for the year, there were 67 completed home sales in the $1,000,000+ market down from 93 in 2008 and the peak of 132 in 2007.  The average sales price dropped again to $1,481,000 in 2009 from $1,585,000 in 2008.  The average days on the market rose from 93 days in 2008 to 117 days in 2009.  The most expensive home did rise a bit to $2,500,000.  New Homes continued to take a large share with 33 of the 67 completed sales.

Today there are an additional 129 homes currently on the market with an average asking price of $1,984,000.  This includes 57 new construction homes and properties ranging up to a list price of $13,500,000.  There are also 18 properties under contract at an average price of $1,647,000 including 9 new homes.

Bottom Line: So, as we last found in June, the luxury home market continues to be working against the economy and financing issues as it waits for confidence to return to the market.  As before, new homes enjoy a large share of the market as home buyers still appreciate the flexibility that new construction affords.

As always, should you have any questions or are considering a move in the area, please do not hesitate to contact me anytime.

David Henke
Long & Foster Real Estate Inc - Newtown Square,PA/Bear, DE
Office: 610-353-1199/Direct: 610-359-3853/Cell: 610-618-0808
www.DelawareCountyPennsylvaniaHomes.com

(All statistics per the TrendMLS System and believed accurate but not guaranteed)

Happy New Year!  Welcome 2010!

Welcome to Pennsylvania!

Welcome to Delaware!

Welcome to the Brandywine Valley!

Thank you all for a great 2009 and looking forward to the New Year.  Just a few reminders as we head into 2010:

- The $8000 Credit for First Time Homebuyers is still available.
- A $6500 Tax Credit is available for resale buyers.
- To get the credits, homes must be under contract by April 30 and settled before the end of June 2010.
- Now is the time to strategize to make the most of this opportunity.  As we close in on the end of April, expect the inventory to drop again with possibly rising prices.

As always, if you have any questions, do not hesitate to contact me anytime.  Enjoy!

Congratulations to Wayne PA - Delaware County's newest member of Classic Towns of Greater Philadelphia.

On October 1, the Delaware Valley Regional Planning Commission (DVRPC) added nine more towns to its Classic Towns of Greater Philadelphia Marketing initiative. Wayne is now one of twenty towns in the initiative that "is designed to promote the Classic Towns as great places to live, work, and play."  The Classic Towns initiative tries to highlight each town individually while promoting the entire region.  Toward that end, they are working to "identify niche markets, invest in and build on quality of place, create new partnerships, and thinking regionally while acting locally" as they support the region's older suburbs.

Wayne joins Media and Lansdowne as the third Classic Town in Delaware County.  With settlement beginning in the late 1600s, Wayne PA was one of the earliest communities in the area.  Growth increased in the mid 1800s as developers and investors began non-agricultural development along the then new railroad between Philadelphia and Harrisburg.  Over time, the area developed from farmland, to country getaway, and finally to one of the best suburbs in the greater Philadelphia area.  Today, Wayne is recognized as a prime residential community now located in Radnor Township with great schools, excellent housing, low crime, a central business district, and residents dedicated to its future.

As Wayne Council President, Thomas Masterson Jr, mentioned in their press release: "The Classic Towns initiative helps draw attention to what a great place Wayne is to live and raise a family".  With all its amenities, history, and great location along the Main Line, it should remain a prime location for years in the future.

As always, if you have any questions or need any additional information, please do not hesitate to contact me anytime.

Welcome to Wayne.  This station is on the R5 Regional Rail Line just west of the Blue Route (I476).

With a prime location on the Main Line, the Wayne SEPTA stop is one of only four R5 rail stops in Delaware County.  The R5 Regional Rail Line parallels the Amtrak tracks from downtown Philadelphia to Downingtown/ Thorndale.  This line is still served by Amtrak through trains, but the nearest Amtrak stops are a few stations to the west in Paoli or just a bit further east in Ardmore.

This is an ideal commuter station with some commuter parking on both sides of the track and with plenty of space for picking up and dropping off passengers.  It is also within easy walking distance of many single family homes to the north and the multitude of condominiums and apartments in the area.  Wayne is also a great shopping, commercial, and restaurant destination.  The video will provide a better feel for the area:

Wayne (zip code 19087) continues to be a prime real estate market.  As in many areas, the area hit its peak sales activity several years ago in 2004 with 168 sales as the average price first moved above the $600,000 mark.  Prices continued to rise as sales tended down through 2007.  In 2005 there were 165 sales averaging $695,000, in 2006 144 sales with an average price of $689,000, and finally prices peaked at an average of $778,000 in 2007 with 157 sales.

In 2008, sales fell to 113 homes with an average price of $757,000 and have continued the slide this year with 55 sales year-to-date at an average price of $607,000.  Today, there are an additional 76 homes on the market with an average list price of $1,097,000 and 19 homes are under contract with an average list price of $924,000 (the average sales price should be rising as these settle).

With its prime location, diverse array of housing options, great eating and shopping options, and good rail links, Wayne should continue to be one of the preferred commuting and housing destinations on the Main Line for years to come.

As always, should you need any additional information, please feel free to contact me anytime.

(Al statistics are from the TrendMLS System and believed accurate but not guaranteed.)

Welcome to Philadelphia! If you love history or want some interesting background on the Philadelphia region, this video from fifty years ago provides some perspective. 

I've wanted to do a video overview of the area to provide a good look at all that this region has to offer, but I really don't think I could do anything to compare to this: 

Although I'm sure the video covered most of the questions that you may have had about the area, should you need any additional information, please feel free to contact me anytime!

(Thanks to goleopards1 for posting this and imanacer for finding it.)

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.

 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)

It happens to all of us. 

You downsize from a five bedroom house to a three bedroom condo.  You change from a two story colonial to a multi-story contemporary.  You get your first home and the two bedroom apartment furnishings with the egg crate shelves just don't make it.  In each case, you need a change of furniture.

Sometimes you need an entire house, at other times you may need just an accent piece - but you always have the same problems with where to go for the new furniture and what to do with the old.  Well now, beyond all the new furniture store options and rather than trying to wade through a thrift store, you have another alternative to consider.

Hidden in Wayne and open only once a month is Random Pieces.  Whether you are buying or selling, you may want to give Chip a call.  He can explain it best:

Located behind 120-122 Lancaster Ave in Wayne, they open once a month so buyers can come and peruse the latest finds.  It can be an eclectic collection ranging from single item tables or sideboards to full furniture sets and everything in between.  Items vary but they try to maintain a mix for every room in your home.  They can also buy your quality furniture from you to ease the transition if you may be moving, downsizing, or may simply need a change.

Considering a move?  Thinking of something a little bit different?  Need to get rid of some of the existing furnishings? Trying to save some money?   Random Pieces may be a good place to start - and they are local!