SOUTHEASTERN PENNSYLVANIA 2023 QUARTER ONE market insights
Will There Be a Spring Market?
Table of Contents
2023 Spring Market .................................................... 2
Regional Market Analysis . ........................................ 6
Analysis by County Bucks County................................................................9 Chester County........................................................... 11 Delaware County.........................................................13 Montgomery County.................................................. 15 Philadelphia County....................................................17
Will There be a Spring Market? .............................. 18
Our Advice to Buyers and Sellers ...........................21
Will it warm up?
Welcome to Market Insights , a quarterly publication that offers our perspective on the local real estate market. In this issue we’ll talk about spring markets: why they are a phenomenon, and if we will have one this year.
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We’re heading into the season when real estate For Sale signs start popping up like daffodils. Traditionally, spring is the busiest time for real estate sales in our area. There are a number of reasons for this: • Spring fever hits buyers and sellers eager to get out of the house and enjoy nice weather. They take the opportunity to attend some open houses as their interest in a move is piqued. • Potential sellers wait for this time of year when the outside of their property looks its best: green grass, blooming flowers, and sunlight streaming through sparkling clean windows. No wonder more houses come on the market than at other times of the year. • Households with school-age children like to buy or sell in the spring so they can move into their new home during the summer. This gives families time to get the kids settled and ready for a new school year.
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“ “You’re at the low, but you can start to see better days ahead.”
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It’s been several years since we’ve had what would be considered a typical spring market: • 2020: COVID-19 closed down the nation for most of what would have been a spring market. • 2021: With interest rates at their lowest point and COVID-19 concerns alleviating, sales hit record levels all year long. A release of pent-up demand made the entire year feel like a spring market of activity. • 2022: Started as an extension of 2021, but then rapidly rising interest rates caused sales to decline sharply through mid-spring and the remainder of the year.
Will there be a spring market in 2023? Robert Dietz, chief economist for the National Association of Builders says
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The spring is likely to mark a turning point. You’re at the low, but you can start to see better days ahead. How far ahead those better days are remains to be seen.
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One of the things that will determine the extent of those better days is the number of houses available for sale. In some of our market areas, inventory continues to decrease. In this case, the number of sales may not rise as dramatically due to limited choices for buyers. In other areas where inventory is growing, more properties for sale will likely result in more robust sales. In Southeastern Pennsylvania, inventory is increasing, which should result in a more balanced market and more sales. Average sales price is also still on the rise, which is good news for sellers. homes sold 37 % 9 % 40 % 5 % number of homes for sale pending home sales average sales price
Source: Terradatum YTD 2023 over YTD 2022 % Change
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“ …inventory is increasing, which should result in a more balanced
market and more sales.
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Bucks County
homes sold 31 % 7 % 33 % 4 % number of homes for sale pending home sales average sales price
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Chester County
homes sold 36 % 10 % 35 % 10 % number of homes for sale pending home sales average sales price
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Delaware County
homes sold 41 % 2 % 24 % 6 % number of homes for sale pending home sales average sales price
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Montgomery County
homes sold 35 % 1 % 27 % 7 % number of homes for sale pending home sales average sales price
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Philadelphia County
homes sold 40 % 12 % 31 % 1 % number of homes for sale pending home sales average sales price
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Will there be a spring market? It’s trending that way.
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Will there be a spring market? It’s trending that way. At their peak, mortgage interest rates were over 7%. Now they are closer to six. As inflation continues to decline, mortgage rates will go down as well. As long as this continues and the geopolitical situation remains relatively secure, we believe that increased listing and selling activity in most of our market areas will result in a spring market. It will not be as active as our pre-COVID-19 days, but it will be a spring market nonetheless. If you are ready to sell your home and/or buy a new one, this spring is an excellent time to make a move.
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“ Spring is an ideal time to show your house at its best…
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Our Advice to Sellers:
Spring is an ideal time to show your house at its best so take advantage of this. Even if there is a shortage of listings in your area, make sure that your property is priced properly and shows well inside and out. Your Berkshire Hathaway HomeServices Fox & Roach sales professional can help you understand the finer points of pricing and set the stage so your home will have maximum appeal to buyers.
Our Advice to Buyers:
Spring may bring more houses on the market, but that doesn’t mean there won’t be competition, especially if properties are priced correctly and have the advantage of looking as attractive as possible. So it’s best to make your first offer your best offer, and make sure you have a mortgage pre-approval to present along with your offer. If mortgage interest rates are a concern, consider an adjustable rate mortgage (ARM). This will allow you to take advantage of the benefits of homeownership now and refinance when rates decrease. Your Prosperity Home Mortgage consultant can help you determine the loan that is right for you. All of us at Berkshire Hathaway HomeServices Fox & Roach are standing by to help you achieve your real estate goals. Our commitment to you: Everything You Need .
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