January 2014 Market Update
Delaware Valley Real Estate
(Philadelphia Metropolitan Region, including parts of Delaware, New Jersey and Pennsylvania)
January 2014 Market Update: While the Delaware Valley housing market activity typically slows down in December and January, recent activity was well below expectations. The unrelenting harsh winter weather may have played a role in dampening market activity. Sales for January were a disappointing 3.5% below last year. Pending sales were 11% below last year. Electronic showing requests were surprisingly 7% above last year. The median sold price was 6.5% higher than a year ago. This is exciting news for sellers; and, it is in line with the expectations of 4-5% increase in home prices for 2014.
County Level Statistics – January 2014 (Video)
(Click on county name below to go to that county’s video)
- Chester County PA
- Delaware County PA
- Montgomery County PA
- Philadelphia County PA
- New Castle County DE
Looking Ahead in 2014: While the cold weather effects are likely to have a temporary negative impact on housing market activity in the first quarter and February is off to a slow start, we expect sales for February to be about equal to last year.
New Mortgage Requirements: There have been a few recent changes in 2014 that may impact the financing of home purchases this year. FHA Loan Limits for 2014 in the Philadelphia-Camden-Wilmington Metropolitan area have been decreased from $420,000 to $379,500, which probably won’t have a significant impact on 2014, as FHA loans have steadily decreased from 35% of all home purchases using FHA financing in 2009 to 18% in 2013. Conventional loans may be more difficult to get for borrowers as new requirements are being placed on mortgage lenders to comply with The Ability-to-Repay and Qualified Mortgage (QM) Standards - in an effort to protect borrowers and to lower the risk of defaults and foreclosures. It is estimated that more than 5% of all the 2013 conventional loans would not have qualified under the new QM requirements. Conventional financing for non-QM loans is expected to be more expensive.
Thinking of Selling a Home? The weather forecast definitely says winter. But, the real estate market sees the signs of spring! We are already abuzz with what’s to come! We know there is demand building beyond the recent weather effects and this is great news for sellers. Feel free to contact me for market statistics relevant to your property. Also, contact me with any questions or for further assistance.
Letitia Stevenson, REALTOR® - Berkshire Hathaway HomeServices Fox & Roach, REALTORS®, a member of the franchise system of BHH Affiliates, LLC. Data Source: Multiple Listing Service (MLS) or public records, all residential properties. Information believed to be accurate but not warranted. Updated by the 10th of the month for the prior month (02/14). EHO.
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