Main Line Real Estate: The Truth about the Housing Market

The housing market has been constantly in the news this past year with the media reporting on decreasing property values and increasing foreclosures. Unfortunately most of the information on the housing market reflects what is occurring in Florida, California, Arizona, Nevada, and Michigan some of the hardest hit states. What the media neglects to mention is that real estate is extremely localized. The values and prices of homes for sale vary from state to state, school district to school district, and town to town. Since I live and work as a Realtor on the Main Line, I decided to examine the housing market of the T/E and Radnor school districts which are comprised of the towns of Radnor, St. Davids, Wayne, Strafford, Berwyn, Devon, and some of Paoli, Malvern, and Valley Forge. While sales of homes in these areas are down approximately 33% from this time last year, I do have some encouraging news to report. The average prices of homes in these areas are actually increasing. Our homes have not lost 10% to 20% of their value as the media would have us believe. Homeowners in the T/E and Radnor School District, on the average, can expect their homes to be on the market 62 days before finding a buyer and to receive 96.4% of their asking price. We do have a seven month supply of homes on the market which indicates that this is still a buyer's market. A six months' supply is considered to be a balanced market. A balanced market is when the number of homes for sale is approximately the same as the number of buyers in a certain area. So currently we are not far from a balanced market, but what does the future hold? The latest housing market forecast from Trend, the multiple listing service for agents on the Main Line, predicts from now until the end of 2008 that the number of houses for sale and the average days on the market for homes will increase and the number of homes sold will decrease while home values are expected to remain about the same.

Currently, People are watching their retirement accounts, 401ks, and savings dwindle. Everyone is expressing concerns over the economy and are asking when will this crisis end? I don't know the answer to that question. What I do know is that interest rates are down in the 5% range, gas prices are decreasing, and the sales of lower priced homes are still robust. Hopefully, sooner than later, the low interest rates and the decreased threat of inflation will entice some buyers to go ahead and make that home purchase. I am still hopeful that the turn in the market is on the horizon and thankful that the housing market on the Main Line is doing better than other housing markets in the United States. Real estate on the Main Line is still a good investment.