Most agents in the State College, PA market are seeing an increase in activity of listings over $500,000 in the last few weeks. Some agents have speculated this has to do with continued lower interest rates or some additional level of certainty and confidence in the market. Increased record highs in the stock market also help due to most buyers in this price range are high net worth individuals.
Since the beginning of the year 7 listings over $500,000 have closed in the State College Area School District. There are currently an additional 13 listings that are sale pending leaving 39 more listings active. This leaves a 3-6 month supply remaining on the open market. One could infer that these 13 pending listings will probably close on or about the end of June keeping us on track to meet last years total of closed sales over $500,000 of 49.
For the last 3 years, home sales over $500,000 in the State College Area School District have grown steadily. 2010 saw 38 closed sales over $500,000. 2011 the market saw 45 closed sales (18% increase over 2010) and 2012 saw 49 closed sales over $500,000 (9% increase over 2011.)
If interest rates continue to stay low as predicted and the stock market continues to rise I believe that the market over $500,000 in State College, PA will continue to improve.
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