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GREATER PHILADELPHIA MARKET CONTINUES TO POST GROWTH OVER LAST YEAR The Philadelphia real estate market has continued to experience a number of positive trends compared to May of last year, according The Long & Foster Market Minute™ reports. The greater Philadelphia region experienced an increase in existing home sales across the region, and homes in many areas are selling faster than they did the same month last year. The Long & Foster Market Minute™ reports are compiled from data from residential real estate transactions within specific geographic regions, not just Long & Foster sales. In May, major counties in the Philadelphia region experienced significant increases in units sold compared to May 2009, ranging from 22 percent to 31 percent. Philadelphia County saw a year-over-year 23 percent increase in total units sold to 1,282 units. Montgomery County , Pa., experienced a 22 percent year-over-year increase to 783 closed transactions and Bucks County saw a 24 percent increase to 523 units compared to May last year. Delaware County , with 509 units sold, experienced a 26 percent increase versus year-ago sales, and Chester County experienced a 31 percent increase to 473 units. As anticipated, the absence of the tax incentives, offered to home buyers through the end of April, did result in a drop-off in contracts in May versus last year. Declines in pending contracts throughout the Philadelphia region ranged from 32 percent to 49 percent, year-over-year. "As eligible buyers rushed to the table before the end of April to take advantage of the tax incentives, some business that traditionally would have taken place in May or June happened earlier," says Jeffrey S. Detwiler, president and chief operating officer of The Long & Foster® Companies. "Still, affordability will drive the market in the next several months and we're likely to see current contracts align with conditions in the marketplace." Total active inventory across the market has decreased, in some areas significantly, with Philadelphia County down 12 percent since last year to 8,944 units. Bucks saw a year-over-year decrease of total active inventory of 7 percent to 4,055 units. Montgomery and Chester counties had total active inventory decreases of 2 percent and 4 percent versus last year, respectively, and Delaware County's inventory was about even with year-ago levels. May's data also suggests movement toward continued stabilization in the average number of days a house remained on the market before going under contract, compared to the same month last year. In Chester County, days on market (DOM) decreased 17 percent compared to May last year to 77 days, and Delaware's DOM was 79 days, down 14 percent year-over-year. Philadelphia County's DOM in May was 67 days, a decrease of 11 percent compared to May 2009. Montgomery and Bucks counties experienced decreases of DOM of 8 percent and 3 percent, respectively, versus the same month last year. Increased demand coupled with lower inventories resulted in significant decreases in May's months of supply for the region. Philadelphia County and Montgomery County each have 7.0 months of supply, a year-over-year decrease of 28 percent and 20 percent, respectively. Delaware County, with 7.3 months of supply, experienced a 21 percent decrease compared to last year, and Bucks County, with 7.8 months of supply, saw a 25 percent decrease. Chester County registered a 26 percent decrease compared to May 2009 with 8.6 months of supply. "National headlines tell a different story regarding the residential housing market than what we're seeing in some areas of the greater Philadelphia region," says Detwiler. "Historically-low mortgage rates are opening doors for buyers and many sellers are seeing their homes go under contract in a few months. One of the ways consumers can learn more is with The Long & Foster Market Minute™ . These reports help consumers keep up with quickly-changing local market conditions, and Long & Foster sales associates can help those who are interested take advantage of current market opportunities." May data also shows a strengthening of median sale prices for some Philadelphia-area counties compared to the same month last year. Bucks County experienced a 6 percent increase year-over-year to a median sale price of $275,000. Philadelphia and Chester counties also experienced increases with 1 percent and 2 percent upticks, respectively, and Montgomery County experienced a slight 0.4 percent increase in median sale price compared to a year ago. Delaware County experienced a year-over-year decrease of 10 percent to a median sale price of $192,500. |
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