Summer Housing Outlook 2017 for Southeastern Pennsylvania
As we close out the month of real estate here in PA’s Delaware Valley & Lehigh Valley – we learned from NAR (National Association of REALTORS) on Wednesday that existing home sales have declined 2.3% which nationally represent an adjusted annual rate of 5.57 million units. That came as a surprise to Wall Street as they were expecting a drop of just 1 percent. However, those looking for a home to buy in the early spring market have realized this about what lies ahead for the summer housing outlook 2017 – pricing pressure and tight inventory.
The Problem: Inventory
The recent report details how we are up just 1.6 percent year over year. So what’s causing the slow down? Inventory has shrunk by 9% since last year. It’s the 23rd straight month drop. Anything listed
The Good News:
1) Fewer Days on Market
29 days on market in 2017
39 days on market in 2016
2) Higher Median Home Prices
In April, the median home price increased 6% (outpacing salary raises) to $244,000. This was the highest gain since June 2016.
Going Forward: Demand is driving the market
April’s report comes after a strong March housing market report that saw home sales reach their highest pace in over 10 years even with short supplies. Existing home sales rose 4.4 percent in March after it had fallen 3.7 percent the previous month of February. The demand in the market for housing coupled with smaller inventory resulted in a typical homes selling faster in March versus February.
There is another glimmer of hope too as more first time home buyers are entering the market. This will increase demand as it will only be balanced out by inventory settling the price pressure coupled with mortgage rates and buying power.
Regionally, the local Pennsylvania real estate market experience similar results. Here’s what we’ve seen and what we expect to see for the Summer Housing Outlook 2017.
Bucks County Market Outlook
Sales in Bucks were up 6.8% compared to last April and prices exceeded last April by 10.7%. Inventory increased by 3.7% during the month, but is still at its lowest April level in more than 10 years. See Bucks County homes for sale.
Chester County Market Outlook
April sales were exactly the same as last April but are up 7.9% year-to-date. The median sold price was up 1.6% ($5,000). Inventory increased 9.8% during the month and reduced the deficit compared to last year to 12.4%. Don’t miss thousands of homes for sale in Chester County.
Delaware County Market Outlook
For the sixth straight month prices were well above the previous year’s level, with the median sold price up 2.6% ($5,000) compared to last April. Inventory continued to improve and increased 8.3%, but is still 13.1% below last year.
Montgomery County Market Outlook
April sales were up 3.4% compared to last year and inventory increased 5.1% with 166 more listings for sale in Montgomery County but inventory remains well below previous years for April.
Philadelphia Market Outlook
For the first time in over a year, sales fell short of the previous year’s level in April as sales were down 2.1%% compared to last April. Prices, however, continued to rise quickly as April was up 12.1% over last April. This marked the 26th consecutive month that the median sold price exceeded the previous year. This sets the stage for the Summer Housing Outlook 2017!
Ready to buy or sell your home in PA? Contact us today. We’re here to help you every step of the journey.
NOTE: NAR’s existing home sales measures sales and prices of existing single-family homes, condos and co-ops for the nation overall.