CHESTER COUNTY, PA — According to BrightMLS’s April market report, Philadelphia and its surrounding counties have had a shaky start to the Spring Market. In a typical spring market, April would be one of the busiest months of the year. Unfortunately, for this year, the market is slower than normal; the reasoning behind this slowdown is expected to be the high interest rates and decline in inventory. However, when interest rates are put into perspective, they are still under the 7.76% average since 1971. Additionally, even though inventory is low across the board, Chester County still had the second highest growth in the Philadelphia metro region. The highest growth in inventory was in Philadelphia County at 18%, while Chester County had a very impressive 17.2% growth respectively.
Regrettably, it’s not all rainbows and sunshine for Chester County residents. Going off of closed sales, Chester County had the 4th largest decline compared to last year, dropping from the April 2022 number of 488 down to this month’s number of 376, a 30% drop in closed sales. To make matters worse, Chester County also had a substantial drop in both new pendings and listings. With new pendings having a drop of 15.8% compared to last year, and new listings dropping 30% similar to the decline in closed sales.
Luckily, there is evidence of improvement. For example, Chester County’s median sale price rose 2.8% compared to last year. Additionally, there has been barely any change regarding days on market, with last April sitting at 5 days. This April we have had a median days on market of 6 days which is significantly better than Philadelphia County’s which is at 28 days on market. While Chester County experienced an impressive growth of 17.2% in active listings compared to the same period last year, neighboring Montgomery County saw a decline of 9.7%.
Based on my own research using BrightMLS’s data, I compiled specific data for Chester County throughout the month of April 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: 570
- Units Sold: 389
- Average Sold Price: $539,178
- Monthly Supply of Inventory (MSI): 1.8
- Days on Market: 19
Based on this data, 68% of homes that were listed throughout the month of April closed. Of course, there are multiple reasons why a home didn’t sell that was listed. The pricing could have been inaccurate, there could have been undisclosed issues with the property, or the seller could have simply decided not to sell. Even still, closing 68% of homes isn’t too concerning given the state of the market. Slightly concerning is the MSI. In May 2022, Chester County saw the monthly supply of inventory at 1.3, meaning that it would take approximately a month to sell the inventory at that time. This April we’re closer to 2 months, which is indicative of the lower supply and higher competitive nature of today’s market.
Overall, it’s important to note that real estate is local. What happens in one county does not mean that the same thing will happen in another. Instead, it would be more beneficial to consider trends from a long-term perspective, and more specific to your area. Anomalies can happen at any moment, therefore if the trends are known then anomalies can be ignored until more data is available.
Drawing from my experience as a local real estate agent, I’m confident that Chester County will continue to be a top choice for homebuyers. Whether you’re looking for a charming historic home in West Chester, a newer build in Exton, or a peaceful retreat in the countryside, Chester County has something for everyone. Clearly, there are challenges in the current market, such as low inventory and declining closed sales, but these are temporary and do not diminish from the long-term value of owning a home in Chester County. In conclusion, I’m confident that Chester County will continue to be a sought after destination for homebuyers, investors, and anyone looking to put down roots in a vibrant and thriving community. Contact me today to learn more about the real estate opportunities in Chester County and how I can help you achieve your goals.
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