Andrew Wetzel's Musings

October 25, 2020

Delaware County PA September 2020 Local Real Estate Market Insight

Bright MLS has released their Local Market Insight statistics for all single-family homes, meaning both detached and attached, in Delaware County Pennsylvania through September 2020.  If you would like more detailed information about Delaware County or any other County or any specific municipalities in the Delaware Valley, please contact me.  I am only a text, email or phone call away and I respond promptly to all inquiries.

The overall market continues to be affected by the pandemic and resulting economic impact.  However, generally speaking, the results in many areas are encouraging and, as always, your experience may differ depending on your location and how you have been personally impacted.  As I always say, the decision to buy or sell Real Estate is a personal one and the current environment typifies that.

This report compares current year-to-date results to one-year ago, same time period.  As with all Real Estate statistics, two things are true.  First, the performance within individual zip-codes can and will vary significantly from the overall County.  Real Estate is local and results can vary from neighborhood to neighborhood and even block to block.  There is no such thing as a “national” Real Estate market any more than there is a national weather forecast so, if you are thinking about selling or buying, please contact me for details about your areas of interest.  I can provide current information and keep you informed about the evolving market.  Deciding whether it is the right time to sell or buy is a personal decision typically involving a number of variables.  I have the experience to provide you with the knowledge and insight critical to helping you decide what works for you.

My second point is that, unfortunately, all Real Estate statistics involving sold data are stale.  This is especially true if you are relying on Internet valuation models which use recorded data rather than up-to-date MLS information.  Even then, while a sale may be reported as settled or closed today, the real question is when was the offer negotiated?  Many sales take 45 to 60 days to close, sometimes longer if there are issues, so the market today may be different.  Up-to-date information, even if not perfect, is important!

As far as the statistics, there were 6417 properties listed for sale through September 2020 compared to 7370 listed through September 2019, a decrease of 12.9%.  Low inventory levels are having a major impact on the Real Estate market in many areas, with many buyers competing.  There were 4893 closed sales through September 2020 compared to 5296 through September 2019, a decrease of 7.6%.  Compare units listed to closed sales and it is obvious that many houses did not sell.  The median selling price through September 2020 was $250,000 compared to $230,000 through September 2019, an increase of 8.7%.  Interestingly enough, all statistics just for September 2020 are much improved over September 2019, suggesting that the market has continued to rebound after a sub-par spring.  Again, these numbers vary throughout the County:  the underlying data shows a wide range of results in all categories among the 49 different municipalities in Delaware County.

Generally speaking, low inventory levels in some areas have produced multiple offers and a frenzy among buyers, some of whom may live to regret a hasty decision to get a property under contract.  I still see people who regret decisions they made or did not make during the last boom.  During the shutdown when “in-person” Real Estate activity was not permitted, many buyers made offers “sight unseen” or without inspections.  The effects of that remain to be seen but Real Estate, perhaps with the exception of properties acquired strictly as “investments” with documented income, is generally not something given its expense and complexity that the typical buyer would want to purchase without an in-person showing and inspections.  Technology, however advanced, has its limitations.

What about the properties that did not sellMany came off the market and still remain unavailable.  As the pandemic continues to evolve, some properties did come back on the market but many have not.  Did owners delay, change or give up their plans?  Buying activity has been strong but the sellers may be reluctant to allow showings or may have other issues they are dealing with.  My main concern is whether people are making an informed decision or reacting to what they “think” is happening in the market.  As always, some opinions are just that.

For example, I am sitting on one of five Auxiliary Property Reassessment Appeal panels in Delaware County and to date my panel has heard over 600 appeals by owners questioning whether the new assessed value assigned to their property is realistic or not.  Many who purchased their homes during the past few years are telling us that they overpaid for their homes and they are questioning why their assessments are being based on what they actually paid.  It remains to be seen how people buying this year feel going forward.

Buyers need to do the same planning and preparation that buying always requires.  Selling involves the same planning and preparation as in the past.  Anyone looking to sell or buy just needs to understand their local market and decide how to react to the pandemic as a “variable” that was not here last year and, hopefully, will be gone in the near future.  The reassessment adds another dimension of uncertainty as far as what your tax rate will be going forward.  As always, the effects of buying and selling remain for years.

I tell my clients that I cannot guarantee that their house will sell if it is on the market but am fairly certain that it won’t if they take it off the market.  Anyone trying to sell now may have less competition and more offers to consider.  Buyers may have more competition and fewer houses to consider.  Hiring an experienced, trained and educated professional is more important than ever.

Despite any pandemic, every house will not sell.  Houses may get showings without generating offers unless buyers think they are priced within the range of their perceived “worth”.  Most property listings whose contracts are canceled or allowed to expire have asking prices considered high for their market and/ or they were poorly marketed, meaning that some buyers and agents may not have even known that a property was available to look at or purchase.  I have recorded a blog and a podcast on that very subject based on two very recent experiences, one with a seller and the other with a buyer.  Some buyers may even make a “full price” offer just to control the process only to have remorse later as inspection results are revealed. Of course this may well depend on the ratio of buyer and sellers so there is more to this than raw statistics.

If a market has a lot of inventory, some buyers may not be willing to look at houses priced high compared to the rest of the market:  why try to negotiate a price down when other similar properties are available at more competitive prices?  Many sellers open to negotiating their price will never get the chance.  I will happy to discuss specifics with you.

The overall economy is coming back but many are still hurting financially.  Statistics aside, what are you planning to do?  Real Estate is generally a long-term investment unless you are looking to fix and flip it or planning to move within a short period of time.  There are opportunities out there.  As with the stock market, it is very difficult to pick the best time to make a move.  An educated consumer faces better odds than a lucky one!  All you can do is get the best available information, determine what is in your best interests and then start the process.  I am a phone call or email away and getting started is easy once you take action.

If you want or need to sell any type of Real Estate, now or in the future, whether you tried and did not succeed before or are doing it for the first time, it is never too early to start the planning and preparation.  Please do not wait for what you think is a better or the best time to start.  Buyers look all year long and can only see and buy properties that are available to see.

There is no time for inexperience, empty promises or false expectations! 

HIRE WISELY:  We are not all the same!

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