So what is happening in real estate in Bucks County, and Yardley?

First quarter real estate market results are in, so lets take a look at what is happening.

First, looking at Bucks County real estate, what is really striking, is that the number of houses for sale, was more than 7% lower at the end of March this year, than last year at the same time.

I have blogged a couple of times recently, about the changing dynamics in the market.  It seems as though more houses are selling faster than they were last year, and based on the decrease in inventory levels, that makes sense.

The other extremely striking statistic, in the Bucks County real estate market, is in pending sales.  Pending sales represent homes where the seller has accepted an offer, but the house is waiting for closing.  Pending sales in Bucks County were up by an incredible 26% at the end of March, compared with last year.

I am not quite sure what to make of that number, yet.  I sense that buyers are more motivated, and more buyers are coming to the realization that 4% interest rates will not be around forever.

Check the chart, for Bucks County real estate details.

Bucks County real estate market in a shapshot

Yardley Real Estate

In the Yardley, Lower Makefield Township real estate market, the number of homes on the market is actually about 2% higher at the end of March than it was last year at the same time.

Inventory was up by almost 12% from the end of February, which is to be expected, as we entered the spring market.

I think that there are still an abundance of houses in Yardley that have been on the market for a long time, because they are overpriced, given current market conditions.  Even though inventory levels are higher, there is definitely more activity in the real estate market right now.

It is also interesting to note that the average price of a house on the market in Lower Makefield Township was $476,000 thie year, compared with $481,000 last year.

In addition to that, it may surprise people to know that the average price of a home sold in 2011, increased slightly in 2011, and is up by 5% this year, so far.

In Lower Makefield Township, there still is about an 8 month inventory supply, which indicates that factors are still favorable for buyers.  We consider the real estate market to be balanced, when there is about a 6 month supply of homes on the market.

Yardley real estate appreciation chart

In summary, the real estate market in Bucks County, and especially in the Yardley-Newtown areas, is showing the most encouraging signs that I have seen in about 4 years.  There are still homes that have been on the market for months and months, because they are overpriced.  However, homes that come on the market that are priced realistically, based on current market conditions, are selling much fast than they have at any point in the past 4 years.  If you are getting ready to put your house on the market, please ask me for a copy of my ebook, 450 ideas to help get your home sold quickly.  Send me your email, and I will email it to you.  My email is: Marty@MartinMillner.com.

That is not the case in  real estate in Yardley.

From a real estate perspective, we in the industry feel as though what we refer to as the “spring market” begins just after the Superbowl.

Happily for us Eagle fans, the Superbowl is over.  On a different note, that was one of the most painful games to watch for those of us who are diehard Eagle fans.  From a purely football perspective, I am happy that the game is over!

So what are we talking about when we say that the spring market starts after the Superbowl?   What that means, in general, is that as we get closer to real spring, people begin to take steps to effect moves in June, July and August, which are the busiest moving times of the year.  Many people, especially if they have kids in school, prefer if possible to move while their kids are out of school.

So, for those who want to either buy or sell beginning at the end of June, they often start the process in February or March, which is why in the real estate industry we say that the spring market starts now.

One of the very common questions that I get from sellers is whether it is best to sell in the spring. The reality is that real estate in Yardley, Newtown or anywhere for that matter, is essentially a function of supply and demand. The answer to the question about whether the spring is the best time to sell really is that it depends.

It depends on supply and demand factors. If the next month or so brings a flood of new sellers to the market in the Yardley area, without a corresponding increase in buyers, there will be further downward pressure on prices. If, on the other hand, there are lots of buyers but fewer sellers, the opposite will happen.

From several personal recent real estate experiences, I can tell you that right now, in the Yardley and Newtown area, inventory of houses is lower than it has been in quite a while, and there does seem to be an increase in the number of buyers.

I have had listings in Newtown and Yardley that have recently received multiple offers. I hear the same thing from other agents.  I am also having a really difficult time finding quality houses to show buyers that I am working with in the Yardley area.

I have encouraged several sellers that I am working with to take advantage of the current dynamic, by getting their house on the market as soon as possible.  I am not suggesting that suddenly we are in a sellers market, but I am suggesting that for those sellers who are realistic about their price, the real estate market in Yardley and Newtown is more favorable than it has been in quite some time.

Spring is in the air in real estate in Yardley!

Time to take a look at what happened in our real estate market in Bucks County and Yardley in 2011.

As noted on the Bucks County real estate chart below, we can see that the number of houses sold in all of Bucks County was 3% less than the number of houses sold in 2010.  (There were still 4423 homes sold in Bucks County in 2011).  The number of homes sold in December of 2011 though, was 11.6% higher than in December of 2010.  This was the sixth consecutive month that unit sales in the County were higher than the previous year.

Prices of homes sold in 2011, in Bucks County, fell by 5.5%.  As you will see in the Yardley data, home prices in Yardley/Lower Makefield Township did better than that in 2011.

Pending sales remained about the same as they were a year ago at the same time.

Bucks County real estate inventory is 9.2% less than it was a year ago, and more than 10% than it was in November  of 2011.

Finally, the average listing price of a home for sale in Bucks County, is down by 3.5% from a year ago at this time.

What does this all mean?  Specifically for Lower Makefield Township, there is now a 7.2 month inventory supply.  We consider a market to be balanced, when inventory is about 6 months.  It seems as though in the Yardley area, we are getting closer to balanced market conditions.   Average days on the market is 87 right now, compared with 72 last year.  Buyers are still negotiating an average of 8% discount from original asking price.

As I suggest on a regular basis, market conditions demand that sellers who are serious about selling, be realistic in their asking price. I see it over and over again, that over priced homes, help the realistic sellers get their home sold!

Hard to believe that we are just a week away from Christmas!

From a Yardley real estate perspective, we are now 11 months into data for 2011. Let’s see where we are, both with Yardley real estate and Bucks County real estate.

Bucks County real estate

Units Sold: Looking at numbers for all of Bucks County, the number of units sold this year is about 4% lower than a year ago at this time. For those who suggest that no real estate sells in Bucks County, although the number of houses sold is a bit lower, there have been 4,052 homes that have closed through November this year!

Pricing: The average price of a home for sale in Bucks County is down by 5.5% from last year at the same time.

Pending Sales: This is the best forward indicator of real estate activity, and the number of pending sales has trended up for several months.

Inventory: This is also an extremely important metric, when considering Bucks County real estate market conditions. The number of houses for sale in Bucks County is 7% less this month than last month, and more than 11% lower than it was at the same time last year! This still represents more than 11 months of inventory in Bucks County. We consider a market to be balanced when there is about a six month inventory, so you can see that factors are still favoring buyers. It is important to note, that the average days on market has also increased this year, from 88 to 101.

Observations for Bucks County real estate market

My observation from all of these statistics is that the market, while still favoring buyers, has stabilized a bit in Bucks County. I posted an article the other day comparing distressed and non-distressed real estate sales. In the article, I pointed out that both locally and nationally, prices of non-distressed properties appear to have stabilized. In looking at Bucks County real estate, it is important to note that we have far fewer distressed property sales than in many other parts of the country. Houses can and will sell, if they are priced correctly, marketed properly, and if appropriate steps are taken to ensure that they show as well as possible.

Yardley Real Estate Information

As I have pointed out many times in the past, real estate markets are very local, often varying from neighborhood to neighborhood. Let’s look at what is happening in the Yardley and Lower Makefield Township real estate market.

Inventory

• Inventory of homes Nov 2011 204
• Inventory of homes Oct 2011 226
• Inventory of homes Nov 2010 194

Although inventory is a bit less this month, compared with last month, it is higher by almost 10% from the same time last year. This is a bit of a contrast to the County as a whole.

Pricing

• Average price of a home for sale Nov 2011 489,000
• Average price of a home for sale Nov 2010 499,000

Asking price of a house for sale in Yardley/Lower Makefield Township is about 2% lower this year.

Units sold

• 261 homes sold through November this year
• 291 homes sold at the same time last year

It is also interesting to note that homes selling this year sold at an average of 92% of the list price, while they sold at an average of 93% of list price last year. Please note that when comparing the sold price to list price, we use the original asking price, where the price is reduced.

There is currently about a nine month inventory of homes for sale in Yardley. This is actually a bit better than for all of Bucks County.

Observations

There is no question that, looking at all of this information, it is still a buyers market. However, whether you are a buyer, seller, or just curious about real estate in Bucks County, or Yardley, houses are selling. Interest rates are at historic lows. Despite public perception, buyers are getting mortgages, and real estate is selling. If you are a potential seller, it is critical that you be realistic about pricing. It has never been more important to make sure that your house shows as well as it possibly can, and that it is marketed properly and thoroughly. I have a real sense that, especially for non-distressed homes, the market is a bit more stable right now, than it has been in quite a while.

From a Bucks County perspective, why is this article so interesting?

There are always articles written that talk about how bad the real estate market is.  I have written pretty extensively about the real estate market in and around Yardley and Newtown, and all over Bucks County.  I have pointed out on numerous occasions, that our market is nowhere near as dire, as in other parts of the country, like Arizona, Florida, etc.

This Journal article is the first article that I have seen that makes a distinction between distressed sales, and non-distressed sales.  I think this could be a critically important distinction, because, as the article points out, according to CoreLogic, an important emerging trend is that home prices are actually stabilizing after excluding distressed sales.  If you are not familiar with the term, “distressed sale”, it essentially refers to bank owned properties, and/or short sales, etc.

It is clear, according to the statistics, that prices of non-distressed properties are actually stabilizing, even as the prices of distressed properties are still falling.

The reason this becomes so important to the real estate market in Bucks County, is because for Bucks County real estate, the percentage of distressed property sales, is very significantly lower than the national average.  In fact, for all of Bucks County, the percentage of distressed property sales is about 13% or so, while the national percentage is 28 to 30%.  I would actually suggest that in the Yardley, Newtown, Washington Crossing real estate market, that percentage is even lower.

In fact, many people are really surprised to learn that for the entire real estate market in Bucks County, following the height of the market, which was in 2007, prices fell by 6.7% in 2008, they dropped by 6.8% in 2009 and believe it or not, they actually went up by 4.3% in 2010.  Those statistics are based on the change in the average sold price, each year.

So, if you live in or are interested in real estate in Bucks County, spread the word!

I am also including with this post an appreciation (or depreciation) chart for Lower Makefield Township housing, starting with the year 2000. If you follow the numbers, you will see that our area has lost about 15% of value since the height of the market. The real estate market in virtually all of Bucks County has held up considerably better than many other parts of the country.

Real Estate Update for Yardley/Lower Makefield Township.

Inventory:

• Houses for sale at the end of September 2011 246
• Houses for sale at the end of August 2011 254
• Houses for sale at the end of September 2010 214

Inventory is up by about 15% from last year at the same time.

Pricing:

• Average price of a home on the market September 2011 $475,000
• Average price of a home on the market September 2010 $521,000

Based on average pricing, the asking price of a house on the market in Lower Makefield Township, is down by almost 9%. Could sellers be getting a bit more realistic?

Units Sold:

• The number of homes sold, year to date in Lower Makefield Township, through September 2011 was 222
• The number of homes sold, year to date in Lower Makefield Township, through September 2010 was 253

Buyers are getting approximately 8% off of the original asking price, on average. This is very slightly higher than last year at the same time. Most importantly, there is an 11-month supply of houses on the market in Yardley, and the average days on the market has increased, as well. All of these factors show that the market is still weighted in favor of buyers.

One statistic that was interesting to note, though, is the number of pending real estate transactions for all of Bucks County, was up by more than 18% at the end of September, compared with the same time last year.  That is the best forward-looking trend line. A pending sale means that the seller has accepted an offer, but the house has not yet gone to closing. I would expect to see this reflected in the number of houses in Bucks County that go to closing over the next few months.

Again, please keep in mind that houses are bought and sold every day of the week. There are buyers looking, and if you are considering buying, there are absolutely great opportunities in the market right now. You can reach me at 215-519-1399 to get any additional information.

Housing appreciation schedule for Lower Makefield Township

Real Estate Sales activity 2011 year to day, compared with 2010.

Probably the most frequently asked question I get from people who know that I am a realtor in the Yardley/Newtown area, is, “how is the market”.

Here is a general market summary for single family houses in Yardley. (Including real estate in Lower Makefield Township)

• Inventory of homes on the market August 2011         254
• Inventory of homes on the market August 2010        224
• Inventory of homes on the market July 2011              252

You can see that the number of homes on the market in Lower Makefield, has remained about the same from July to August, but is about 13% higher than at the same time last year.

• Ave price of a house on the market in Lower Makefield August 2011             $465,000
• Ave price of a house on the market in Lower Makefield August 2010            $521,000

This represents a drop of 10.8% in the average asking price of a home currently on the market in Yardley, from last year.

• 186 Homes sold through August of 2011 at an average of 92% of the asking price.
• 227 Homes sold through August of 2010 at an average of 93% of the asking price.

Currently there is a 11.5 month supply of homes on the market in Lower Makefield Township, and the average days on the market is 83.

Conclusions:

In the real estate industry, we consider a market to be balanced when there is about a 6 month supply of homes.  Since we are dealing with an 11.5

month supply, clearly the market dynamics are still favoring buyers.  No real surprise there.  However, having said that, houses that are priced

correctly, and marketed aggressively, do sell.

If you would like to see what the market is doing in your particular neighborhood, please be sure to click here for  my market snapshot report.

This report will give you a neighborhood specific look at what is happening in your local neighborhood.  Taken directly from MLS data, you will

see what houses are on the market, what houses have sold, and what they sold for, along with reports showing how long homes are staying on the market.

Be sure to ask for this free report.