Archive for the 'Bucks County Real Estate Market Conditions' Category

Bucks County Real Estate Statistics February 2010

Statistics for last 2 years of Bucks County real estate prices and inventory.

Source: TREND MLS

www.BucksCountyMoves.com

Advertisements

A Year in Review…

xmas-pic2 

Since beginning my real estate career in May of this year, I have had the privilege of experiencing many different aspects of the business and I have to say…I love it!  I just wanted to share with you some of the things that I’ve been blessed with doing this year:

· I have attended countless training courses in subjects such as ethics, buyer/seller representation, real estate investing, commercial transactions, foreclosures and many other topics in order to get up to speed with my peers within the industry. 

· I have shown over 150 homes to clients throughout Bucks County, Montgomery County, Philadelphia County, Chester County and Delaware County resulting in successful sales and satisfied customers.

· I have connected out of state clients with trustworthy, local real estate professionals in South Carolina and Delaware that have resulted in closed transactions and satisfied customers.

I am hoping that with a can-do attitude and strong work ethic my business will continue to grow in 2009 in the face of a challenging market. 

I would like to personally thank those of you who have supported my transition from the US Marine Corps into real estate this year.  I continue to find this career an exciting challenge and am optimistically looking forward to serving you in 2009!

 Happy Holidays to you all and many blessings in the New Year!

Bucks County Real Estate Market for Third Quarter 2008

As you can see below, while the rest of the country is experiencing a decline in real estate pricing, Bucks County prices continue to increase.  This is due to the steady increase in employment and population that is mixed with very low mortgage rates.  For these reasons, TREND is forecasting continued growth in the fourth quarter for Bucks County housing prices.

click to zoom

click to zoom

Source:  http://www.TrendMLS.com

Philadelphia-area home market still outperforms nation

Finally, some good news on the real estate market in Bucks County!  On November 13th, 2008 the Philadelphia Inquirer wrote an article outlining how the Philadelphia area market was outperforming the rest of the nation.  Here are some notable quotes from the article:

“Just 4.4% of area homes sold in the last five years had negative equity.  Nationally it was 14.3%”

“The area has a healthy five year annualized appreciation of 6 percent, compared with 3.4 percent nationally”

“It seems Philadelphia may escape the worst of the housing market woes affecting much of the rest of the country”

14.3 percent of national homes with negative equity and Philadelphia area only had 4.4%.  That is great news!  Well of course we would rather see NO negative equity but with all things being considered, I think we should feel pretty good about our current market.  Posted below is the news article.

Phila-area home market still outperforms nation

Bucks County real estate market update

**The average sold price in Bucks County for October 08 was $321,352**

For a comparison, here are the stats for October in previous years for Bucks County:

The average sold price for October 07 was $325,029

The average sold price for October 06 was $331,924

The average sold price for October 05 was $326,519

Market Statistics Criteria Used:

Price Range: 0 to 999,000

Property Category: Residential

Area: All Bucks County

Source:  http://www.TrendMLS.com

How much lower will it go?

That’s the question everyone in Bucks County is asking and I certainly wish I knew that answer. Many people are holding their breath and waiting to see how this election will affect the market. The only immediate reaction that I foresee stemming from this election will be a boost in consumer confidence. A fresh face with exciting new ideas will help some consumers to get off the fence and finally buy or sell that home they have patiently been waiting on. John McCain and Barack Obama both have good ideas for jump starting the economy but remember, no matter who gets elected, the various policies each presidential candidate would like to enact still have to be ratified by the rest of the government and are nothing but good ideas until that happens.

Bucks County Real Estate Market Graphs

Median Sold Price for every real estate transaction in Bucks County over the last 2 years.  This graph includes single families, unit/flats, row/townhomes and mobile homes with a price range from 0-100,000,000.

Median price for Bucks County over the last 2 years

Median price for Bucks County over the last 2 years

This next graph provides a visual representation of the distribution of prices in Bucks County.

Blue Line-The number of properties that were LISTED over the last 12 months

Green Line-The number of properties that were SOLD during the last 12 months

Red Line-The number of properties currently ACTIVE.

Bucks County price distribution

Bucks County price distribution

This last graph shows supply and demand over the last two years.

Bucks County 2 year supply and demand

Bucks County 2 year supply and demand

all the information contained in these graphs is supplied by http://www.trendmls.com

Month’s Supply of Inventory (MSI) and why its important

When selling a home, it is important for one to understand the factors affecting how long it will take for that particular property to sell.  One of the factors that can affect the sale is whats called the month’s supply of inventory or MSI for short.  The MSI is a calculation that expresses how long it will take for all the homes (inventory) in a particular market to be sold.  This calculation is based on the amount of homes currently on the market and how quickly  these homes are selling.  For those of you mathematically inclined, the calculation is as follows:

The number of properties For Sale (FS) during the month (that is, the property was Active at least one day during the month) minus the number of properties that went Under Contract (UC) during the month minus the number of properties that Expired (X) during the month, divided by the number or properties that went Under Contract (UC) during the month:

MSI = (FS – UC – X) / UC

Example:

At the end of September in Bucks County their were 2,791 homes currently on the market with 252 homes under contract.  2,791/252 = 11.08

What this says is that it will take 11 months for the inventory in Bucks County to be sold.

Pictured below is a graphical representation of the MSI for the last two years in Bucks County.

In practical terms, the higher the MSI the more of a Buyer’s Market there is.  There are many more homes to choose from and home sellers will compete with each other, thus driving down prices.  If the MSI is lower, then there is less inventory on the market which gives home sellers the advantage.  For instance,  when the market was a Seller’s Market in 2005, the National Association of Realtors quoted that the MSI was about 4.6.  Compare that to the current Buyer’s Market MSI in Bucks County at 11.  Understanding the MSI is important because it helps to give real estate consumers a clear picture of what the market is doing and what they can expect when buying or selling a home.  By looking at the graph above, you can clearly see that today’s market is in fact a Buyer’s Market and consumers need to set their expectations accordingly.

The statistical information provided in this post was obtained from http://www.trendmls.com