First quarter statistics are in, so we are able to begin to develop a better indication of where things are with regards to real estate in the communities I serve, in Bucks County.  I have written many posts in the past, explaining that the market in Bucks County, is nowhere near as depressed as it is in some markets in the country.  I will address that issue, in another post to follow shortly. 

Here in Bucks County, looking at first quarter statistics, there is no question that we are continuing to experience a buyers market.  That means that there are lots of things on the market, not as many buyers.  One point of emphasis though, is that contrary to what the press would have everyone believe, foreclosures in our area, are still not influencing the market significantly.  I still have buyers who are under the impression that every house currently on the market, is being sold by a desperate seller, who is facing imminent foreclosure.  That is simply not the case.  Virtually every single seller in the market, that I am aware of, is selling for life style, or job transfer reasons.  I have sellers moving up, downsizing, and selling because of job transfers.  All of those reasons, are completely normal.

Here is what the statistics show.  The volume of sold/closed units through the first quarter was noticeably lower than last year, in virtually all of our markets.  Lower Makefield Township was actually down almost 30%, and Upper Makefield was down almost 50%.  Newtown Township was actually the exception, in that Newtown showed an increase of approximately 4% in closed first quarter units.

Inventory is trending as one would expect in a buyers market.  Inventory is up from February in all markets.  If you compare inventory levels at the end of March 2008, with March 2007, the results vary from market area to market area.  For example, Lower Makefield's inventory of homes was lower at the end of March this year, than last year, by almost 22%.  Newtown, Upper Makefield and Solebury are higher, as is Buckingham and Northampton. 

Average days on the market are higher over a year ago, reflecting tougher market conditions for sellers. 

Looking at sold/list ratios, shows slighly increasing discounts of between 6 & 10 percent in most markets.

Despite all of the above, the market contines to be extremely price sensitive.  There are still many examples of houses selling quickly, and selling for close to the asking price.  For example, I recently had a listing right in Yardley Boro, on the main street.  It sold in 2 days, for almost exactly the asking price.  Where is the press when that happens!

The message from looking at all of these statistics is that houses are selling every day of the week.  If it is priced correctly, and marketed correctly, it will sell.  It is still a buyers market, but there are still buyers looking, and buyers are making offers. 

In future posts, I will delve into the statistics a little deeper, and I will also reflect on some additional observations about the current market.