What You Need To Know About Our Housing Market

Everything that buyers and sellers need to know about our housing market.

Have you ever heard the national news and thought the market was all doom and gloom? If so, know that it doesn’t always reflect the truth of the local market. Today, we’re here to update you on the real estate market and what has changed recently in Chester County, New Castle County, and the surrounding area. 

In our area, prices have not been nearly as volatile as in other parts of the country. This is mainly because of our extreme lack of inventory. Normally, in our market, inventory in February and March is around 1,150 homes. Today, it is around 460, which is a huge difference. Plus, if we take out new-construction homes, that brings the number down to 240 homes. 

This lack of inventory is holding up our prices and causing homes to sell at or above the list price very quickly. Demand is extremely high, and many homes are scheduling showings by the hour. Plus, many buyers are needing to remove contingencies to have the winning offer. I believe this will continue through the first and second quarters of the year. 

Besides inventory, the other big factor greatly affecting our market is interest rates. They are still going up, and we’re keeping a close eye on what the Fed is doing. Certain data shows that rates will rise around 0.25%. 

Over two-thirds of our market is made up of homeowners who have mortgages with rates at least 3% lower than today’s rates. Our current rate is around 7.25%, which can fluctuate, and many homeowners don’t want to move to that. As a result, many people ask us if it’s the right time to buy or sell a home. In short, we believe that it always comes back to the individual’s financial situation. 

Since many homeowners are hesitating, home sales are down by about 17% this year. Many people think that means home values are down 17%, but that’s not true. Also, many people believe this means doom and gloom for our market, but we have to remember that the last few years were very abnormal. 

"I recommend working with a real estate professional who knows the market intimately."

In 2020, 2021, and 2022, the number of sales was at a record high. Therefore, if they drop about 17%, we would still have the third-largest home-sale volume in the country’s history. This shows that it’s important to keep things in perspective. I recommend working with a real estate professional who knows the market intimately and can guide you through one of the largest financial transactions in your life. 

If you would like help with all of this, we are here for you. If you have any questions about the market, buying, or selling, don’t hesitate to call or email us. We would be happy to help you!