July, 2008 Market Update - Bucks County, PA

July 2008 - Market Data

Market statistics in Lower Makefield Township, for the seven months ended July 31, 2008 show some mixed results. The average price of the 157 single family homes sold this year is up 4% from the same period last year. This is a positive number, particularly when compared to national news but, the increase has declined from +16.2% in April to +11.5% in May to +3.5% in June and the July figure of +4%, which is in line with June.

Units sold year-to-date are down 28% from the 218 units sold for the first seven months of last year. The number is tempered slightly when viewed in conjunction with an 11% increase in inventory of homes for sale. The fact that homes that are not on the market cannot be sold is difficult to dispute. We are, however, seeing a slight buildup in inventory over the last quarter - having stood at plus 21.4% (over 2007) on April 30^th.

Average days on the market stands at 67, a robust number in the face of strong negative national perception, this is, however, a 10 day, or 17%, increase from the same time last year. Importantly, we're seeing a strong divergence is results in this market. We've seen literally DOZENS of homes in Lower Makefield sell within 30 days (see attached article). We're seeing other homes simply not selling. This leads me to the conclusion that you must be prepared to sell your home quickly. Or not sell it at all.

I've included in this issue my recent article on Selling Your Home in a Buyer's Market. With six proven time tested strategies to get your home sold, while others wallow. If I had to boil down the six strategies into three sentences, or bullet points, they would be:

1.)Prepare your home for showing as if it were going on a first date.

2.) Price your home to sell it where the market knows it ought to be.

3.)Market your home AGRESSIVELY so that it gets picked first (that's where I come in)

Utilizing these suggestions, along with my Six Proven Strategies, in conjunction with an understanding of the market information presented in this newsletter is the first step in assuring that you're the most informed Seller or Buyer in this marketplace. There are a few other tips that I offer below, individually for Sellers and Buyers to assure that they are at the top of, rather than at the mercy of, the current market.

Sellers - now more than ever it is IMPERATIVE to price well, market aggressively and hire the finest, most qualified representation. We are seeing multiple offers on well priced homes in this market while other, less sharply priced homes, languish and stay on the market for months. In short, if you're not working with an experienced agent like me at a great agency like Coldwell Banker Hearthside, you're doing yourself a tremendous disservice. Again, well priced, well marketed homes are selling while others languish. The days of "Passive Real Estate" are behind us, Active, aggressive agents like myself are a must in this marketplace. If you have one, you become one of the beneficiaries of a changed market, if you don't you become a victim of those same changes.
Let's discuss how I can help YOU be a winner in this market!

Buyers - This market requires informed representation to help you determine the worth of any property you wish to explore. This not a market where you can simply knock 10% off the price and make an offer. We've got a mix of well priced homes being offered by sharp agents that will sell quickly at or close to asking price (In some cases more) and properties for which a 10% discount does not bring them to where the market needs them to be. This is not a market for casual or "lazy" buyers, or incompetent agents.

Let's discuss how I can help YOU be a winner in this market! If you found this newsletter helpful, you can find even more information at my fully interactive website www.askAndyRaffle.com. You will find a library articles written by me, a fully interactive search engine to search for properties, my Bucks County Real Estate Blog and much more great information. You can also sign up there for my monthly Blog and Market Updates and refer your friends so that they too can have the most up to date, in depth information on the local Real Estate market.

June 2008 - Market Data

June 2008 data for our primary markets served (Lower Makefield, Upper Makefield and Newtown Townships in Pennsylvania) showed a somewhat mixed bag with our area still outperforming the national market as portrayed by reports in the national news.

Taken as a whole, average sale price for the six months in the three markets are down just over 5% versus 2007 with Lower Makefield (plus 3.5%) still performing above the midline, even after a downturn in the month of June. Upper Makefield (down 8.5%) and Newtown Township (down 6.5%) are in negative territory, largely due to the number of homes in upper price levels that are affected by tightened availability of Jumbo financing.

Units sold YTD are down 17% in the three markets with all three markets showing slower year to date sales.

Inventories of homes available for sale are up a minimal 4% or 20 units. Lower Makefield again shows a drastic decrease in the number of homes available for sale with a 19.5% (45 unit) decrease in homes available for sale. Lower Makefield still merits close attention as the decrease in the number of homes for sale is nearly identical to the decrease in the number of homes sold and prices are UP 3.5%. It is certainly a fair interpretation to say that homes not offered for sale cannot be sold but, homes sold versus homes offered for sale are consistent with 2007 and prices are up slightly at 3.5%. It is my belief that this is largely impacted by The New York/Princeton commutability of Lower Makefield along with the top range of sales prices trending lower than the other two markets, resulting is less call for difficult to obtain Jumbo Financing. Newtown and Upper Makefield will be greatly affected by financing availability as buyers of homes in the ultra high price ranges almost need to be "cash buyers" at this point.


Average prices of homes for sale are up in all three markets. Average increase in asking price in all three markets is 11%.

In neighboring Northampton Township, we're seeing a relatively flat year over year price change of -1.1%. Of concern in Northampton is the large decrease (30.2%) in units sold and rising (+14.1%) inventory levels.

For Bucks County, as a whole, prices were down a modest 4% even in the face of a 21% decline in sales. Inventories are up 5% and list prices are up .6%. It is clear that, while the market has lost some of its steam from previous years, the gloom and doom presented in the national marketplace has not come to our area.


Sellers - now more than ever it is IMPERATIVE to price well, market aggressively and hire the finest, most qualified representation. We are seeing multiple offers on well priced homes in this market while other, less sharply priced homes, languish and stay on the market for months. In short, if you're not working with an experienced agent like me at a great agency like Coldwell Banker Hearthside, you're doing yourself a tremendous disservice. Again, well priced, well marketed homes are selling while others languish. The days of "Passive Real Estate" are behind us, Active, aggressive agents like myself are a must in this marketplace. If you have one, you become one of the beneficiaries of a changed market; if you don't you become a victim of those same changes.
Let's discuss how I can help YOU be a winner in this market!


Buyers - This market requires informed representation to help you determine the worth of any property you wish to explore. This not a market where you can simply knock 10% off the price and make an offer. We've got a mix of well priced homes being offered by sharp agents that will sell quickly at or close to asking price (In some cases more) and properties for which a 10% discount does not bring them to where the market needs them to be. This is not a market for casual or "lazy" buyers, or incompetent agents.
Let's discuss how I can help YOU be a winner in this market!

Be sure to check out www.askAndyRaffle.com, my fully interactive website where you can search thousands of properties, read many real estate articles written by me and see many of the services that I offer.