Login to Your AccountThe Year in Review Montgomery and Bucks Counties
There is a lot of talk about the sagging real estate market. Many “so called” experts would have us believe when the real estate market turns around the economy will follow. That is classic case of the tail wagging the dog. I believe the real estate market is a secondary market not a primary market; that means the real estate market (secondary market) will improve when the overall economy (primary market) improves.
It all comes down to consumer confidence. When people believe their job is secure than they will step up and purchase that bigger home with more room for their growing family. They will no longer be afraid to buy a home today for $300,000 for fear that it will be worth $250,000 next year. When the overall economy gives people that warm and fuzzy feeling again, when people believe they will be getting a bonus or a raise or job security for the next few years we will see the real estate market return to its rightful place in our country’s history. Historically, the largest part of Americans’ net worth has been the equity in their home, those days will return again.
So how was the real estate market in Montgomery County and Bucks Count for home owners in 2011? Keep in mind we are looking for 'trends' in the local real estate market. The following information will show a trend in a few important categories over the past three years.
Important terms:
1. Settled Units: The total number of homes sold between January 2011 and November 2011. More is better.
2. Average Settled Price: The average final sale price of the homes sold in 2011 through November. Higher is better.
3. Median Settled Price: The median final sale price of the homes sold in 2011 through November. Higher is better.
4. Days on Market: The number of days it took to sell a home from the first day on the market until a signed agreement to purchase. Lower is better.
5. Average Settled Price/ Offer Price: This number shows how much the final selling price comes down from the offering price. For example, if a home is offered for sale at $100,000 and it sells for $95,000 that would be a 95% Settled/Offering price. The higher the ratio, the stronger the overall real estate market.
|
Bucks County, PA |
YTD Nov 2009 |
YTD Nov 2010 |
YTD Nov 2011 |
Change 2009/2010 |
Change 2010/2011 |
|
Settled Units |
4,502 |
4,233 |
4,052 |
(5.98%) |
(4.28%) |
|
Avg Settled Price |
$328,000 |
$345,000 |
$326,000 |
5.18% |
(5.51%) |
|
Median Settled Price |
$284,000 |
$297,000 |
$277,000 |
4.58% |
(6.73%) |
|
Days on Market |
88 |
89 |
101 |
1.13% |
13.48% |
|
Avg Settled/Offer Price |
92.31% |
92.5% |
91.00% |
0.21% |
(1.62%) |
|
Montgomery County, PA |
YTD Nov 2009 |
YTD Nov 2010 |
YTD Nov 2011 |
Change 2009/2010 |
Change 2010/2011 |
|
Settled Units |
6,400 |
5,938 |
5,682 |
(7.22%) |
(4.31%) |
|
Avg Settled Price |
$308,000 |
$327,000 |
$309,000 |
6.17% |
(5.5%) |
|
Median Settled Price |
$259,000 |
$272,000 |
$258,000 |
5.02% |
(5.15%) |
|
Days on Market |
85 |
84 |
98 |
(1.17%) |
16.66% |
|
Avg Settled/Offer Price |
92.68% |
92.54% |
90.86% |
(0.15%) |
(1.85%) |
Posted on: Friday the 23rd of December 2011.
Total views: 347
Written by: Tim Connelly
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Tim came to the real estate industry with more than 20 years of customer service as a Vice President with Goldman Sachs & Company, where he serviced the needs of stock and options traders on three different stock exchanges. Tim's career change has allowed him to service the needs of home buyers and sellers with the goal of providing the same excellent customer service that his past clients at the stock exchanges came to expect of him. After all, when you hire a real estate agent, you want them to take care of all the details, so you don't have to. 
