Activity for Montgomery County, PA for January 1, 2011 through August 31, 2011:
> Active Listings = 5,561
(Number of Short Sales = 366 or 6.6%)
> Homes Sold and Settled = 4,649
(Number of Short Sales = 142 or 3.1%)
> Homes Pending Settlement = 926
(Number of Short Sales = 90 or 9.7%)
> Homes Expired/Withdrawn = 3,055
(Number of Short Sales = 465 or 15.2%)
> Sales Price to Original List Price = 90%
This data is for all home types and all price ranges. To look at average home prices or days on market would be almost meaningless since prices on active listings range from $10,000 to $15 million. And some homes sell within a few days and others have been on the market for years (literally).
What does this data tell us?
1) There is a 9-month supply of homes on the market (not counting the 3,055 sellers who gave up trying to sell or any for-sale-by-owners). No matter how you look at it, there is a lot of inventory to choose from.
2) Sellers who thought their home was worth $400,000 are getting closer to $360,000.
3) This is the data from the strongest selling season of the year. Families looking to move for the start of the school year have likely already made their move.
4) There are not nearly as many short sales in Montgomery County PA as one might find in other parts of the country. The "success" rate of a short sale making it to settlement is poor (<15%). The majority of short sales end up being foreclosed on and sold as REO properties.
4) This data suggests that more homeowners may find themselves "upside down" on their mortgage and may have trouble trying to refinance (not enough equity) and/or sell their home (would need to bring cash to settlement).
What can we conclude?
The market in Montgomery County strongly favors the buyers. And prices are likely to continue to decline for the remainder of the year. More short sales and foreclosures are likely to hit the market which will also drive prices down. While the data may not be encouraging to sellers, sellers who are looking to turn around and buy another home in the area will benefit from the strong position buyers currently face.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
2011 Year-to-Date Real Estate Market Report for Montgomery County PA - Copyright © 2011, The Scott Loper Team, All rights reserved.
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