Many people want to know what truly are the real estate market conditions right now (Jan. '08). Well, from my perspective, this is more of a "normal" real estate market. I realize that any time you talk about a "marketplace" it is generally always changing. I started my real estate career in a down market. It was 1990 going into 1991 and a recession. It was a great time to learn for me. Properties were more difficult to sell back then than they are now. We used to tell people that it would take between 3 to 6 months to sell their home. Today, they are not necessarily taking that long. Here are some quick statistics: Newtown Township properties are taking on an average of 47 days on the market to sell and for approximately 97% of their asking prices. In Lower Makefield Township, homes are selling in approximately 63 days and also around 97% of asking price. (Statistics are from TReND, real estate Multiple Listing Service, as reported in the The Bucks Beat magazine Jan/Feb 2008)
The national media does not paint a pretty picture. But, my beliefs are that this area continues to provide consumers with good paying jobs. As long as there are jobs, the real estate market will be OK! It is like Gary Keller, founder of Keller Williams, recently said regarding the nations media's take on the real estate market. He said it is like saying that it is 92 degrees today in America. While it may be 92 degrees in Miami, FL, it is NOT 92 degrees in Philadelphia. Each and every real estate market is different. It is very localized. Some markets are doing very well, while others are seeing record foreclosures.
Yes, we are seeing a market adjustment. Home prices have come down a bit and it is taking longer to sell. But we could not have continued to see the appreciation we were seeing in the past few years. If you are moving up in price range, now is a good time to buy & sell. Why? Because if your home has decreased 5% since last year, and your home is worth $300,000, then the house you are buying has come down at least that percentage amount, as well. Meaning, your home has come down $15,000, but the $500,000 house you want to buy has come down $25,000 (5%). If you are purchasing real estate, now is a good time. Interest rates are way down (under 6%), and there are more homes to look at and choose from than in recent years.
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