2013 Year End Market Update - Delaware Valley Real Estate

2013 Year End Market Update

Delaware Valley Real Estate

 2013 Home Sales Jump 14% as Demand Fuels Housing Recovery 

2013 Year In Review:  In 2013, the Delaware Valley real estate market (Philadelphia metropolitan region, including parts of Delaware, New Jersey and Pennsylvania) saw a robust comeback. Compared to 2012, sales were up 14% and the median sale price was up 4.5%.  Inventory remained low throughout the entire year and ended the year 4% lower than at the end of 2012.  And, while the number of distressed sales (i.e., shorts sales and foreclosures) declined by only about 2% for the year, we saw a sharp decrease in the 4th quarter and distressed sales were down by about 12% over 2012.  As a percentage of closed sales, distressed sales went from about 17% down to 14.5% of the market.

Looking Ahead in 2014:  All indications are that this year is going to start strong with January sales being forecasted to be about 10% above last year.  And, many economists and housing market analysts are expecting a sales increase of over 5% in 2014 and prices to continue on an upward trend.  While the amount of the price increase varies by region, here in the northeast, we are expecting about a 4-5% price increase in 2014.

Six (6) trends to look out for in 2014:

1. Increase in Home Values to Continue
2. Homeowners Likely to Regain Equity
3. Gradual Stabilization of Inventory
4. A Rise in Mortgage Interest Rates
5. Decline in Housing Affordability
6. Further Reduction in Distressed Sales