Looking at the stats from 2009, we can see we still are not selling as many homes as we did from 2004 – 2006.  That was a very unhealthy, false market. But we do seem to have hit a “bottom” or at least some semblance of stabilization. What this means for you if you are planning on selling your home in Chester County is that it can most likely happen in a more reasonable time frame, and you can still get a fantastic deal on a move up (or downsized) home. And if you are looking to buy, there are not as many homes to pick from, but you can still find some great deals.

Included below is a small chart comparing some important numbers for the market for 2009 to 2008. The fact that we only saw a 1.5% decrease in activity from 2008 to 2009 is a very good sign. 2007 – 2008 saw a huge slow down in activity, so this is a good sign. When looking at the average sale price, you have to take the Tax Credit into deep consideration. As I said in my previous post, 62% of the sales activity in Chester County from September – November of 2009 were “First time home buyer” homes, or homes sold at $300k or under. That is usually at about 40%, and so this greatly affects what the average sale price is. And remember, value of a home and average sale price from a market wide perspective are two different things.

Here are the big thoughts when looking back at 2009:

• The Tax Credit “worked”: While in many ways the tax credit has/can create a false market, it definitely got buyers off the fence and significantly reduced the inventory.
• Average Sold Price: Ended around $334,000. While it took a huge dive in the last quarter of the year, that was only because of the amount of activity the tax credit created. In December it was right back in line with trends.
• Inventory Levels: they are back down, almost to 2005 levels, which is a great sign, especially since we started out 2009 at almost record high levels. Let’s hope this trend sticks.
• Sold to list price ratios: Ended a bit off from 2008 at 92% overall. In order to say the market is truly recovering, this number has to get into the 95% – 96% range. Levels continuing at the low 90’s is a sign that prices are continuing to come down. Good news is that December of 2009 ended up slightly above what 2008 was.
• Demand was down, but not so much: Again, the Tax Credit really did a number. From July through the end of the year, there was a crescendo of activity which peaked in November, where demand was at levels not seen since 2005.

If you are thinking about moving this spring, now is an excellent time to do so. We would be honored to help you determine the market value of your home, or to help clarify a purchase strategy. We'd love what we do and we’d love to help you.