EXTON, PA — This June’s Market Report courtesy of BrightMLS indicates both positives and negatives in the current market. Earlier this year, inventory had started to increase which is needed in today’s market. Unfortunately, this past month has seen a decline in new listings indicating seller’s hesitancy to change their low interest rate loans. Across the Philadelphia Metro Region, there was 1.59 months of supply, and active listings declined by an astonishing 15.1% compared to last June. The low inventory has exacerbated the issue seen in today’s market with people being unable to leave their homes, and home prices rising at a steady rate.
Experts make it clear that this market is similar, if not equal to the competitive market seen throughout the pandemic. The hope for future change is an increase in listings. This hope will only be fulfilled with the dropping of interest rates, which is expected to occur sometime later this year. Median home prices have increased by 4.2% compared to last year, however Bucks, Chester, Delaware, and Montgomery County all increased by larger amounts. Chester County had one of the largest increases at 8.4%, meanwhile Montgomery and Delaware county both had a modest growth of 5.9%. Finally, Bucks County had the smallest, yet still noticeable increase at 5.4%.
Luckily, there has been no increase in days on market compared to last year. This indicates a quick turnaround for homesellers, and a competitive market for homebuyers who need to compete in today’s market. However, there have been significant drops in listings, both new and pending. On the pending side, there is a drop of 18.6% throughout the Philadelphia region. Meanwhile, on the new listing side there is a significant drop of 32.7%.
Based on my own research using BrightMLS’s data, I compiled specific data for Bucks, Chester, and Delaware County throughout the month of June to gain a more focused understanding of the area’s performance. This data covers a price range from $10,000 to $10,000,000 providing a more comprehensive snapshot of the market’s pricing.
- Units Listed: 1,866
- Units Sold: 1,736
- Average Sold Price: $469,207
- Monthly Supply of Inventory (MSI): 1.3
- Days on Market: 16
Based on this data, an impressive 93% of the properties listed sold throughout the month of June. This indicates the competitive nature of the market as almost all of the properties that are available were sold. Compare this with May where only 74% of homes listed were sold, and it’s clear this market is much more competitive than last month. Unfortunately, our local market followed the trend of an decrease in inventory. Last month the total number of units listed was 1,951, and there was a decrease of about 4.5% to the number we see this month at 1,866.
Good news for buyers though is that the average sold price decreased by a considerable amount. May’s average sold price was $498,851, compared to this month at $469,207. Additionally, the market has sped up transactions compared to last month with the MSI moving from 1.7 to 1.3. The MSI indicates how many months it would take for the current inventory to sell given the pace of the market. Therefore, it would only take 1.3 months to sell the current market.
Luckily for homesellers, the Days on Market has actually shrunk, also indicating the fast paced nature of this market. Last month the Days on Market was 20, meanwhile this month it dropped to 16. Therefore, if you are looking to sell your home you should be aware that the home will be on the market for a very short period of time.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.