Are you getting a little freaked out by all the mixed messages about the housing market? Not all markets are the same and the newscaster is not a real estate professional. It’s time to turn off the noise and sit with me as I show you how to take a closer look at your market. Sound good?
When we are appraising a house we begin with the larger market so that we have an idea of nearby influences….and then we narrow it down.
We look at different factors from various perspectives to understand what is going on in the rapidly changing world of real estate 2022.
The sale prices are important, but also the sale prices represent an agreement that a buyer and seller may have negotiated 30 to 60 days ago.
How do we know what is happening today?
I have been stalking the list prices and number of listings. It’s a good way to gauge the most current point of view of the home sellers and their agents.
Phila & Suburbs is an example of the larger market
Detached Single family homes in the PA counties of Montgomery, Bucks, Philadelphia, Delaware and Chester
The number of listings right now is about half of the number of listings compared to a year ago.
And the list prices remain high and competitive.
So, first thought is…. cool! We are all good over here in the Philadelphia area.
Now, keep in mind these stats represent thousands of detached single family homes in a very large market area.
So, it’s time to take a closer look………
Montgomery County, PA
Same search, just narrowed down to a smaller area within Philly Suburbs.
Looks very similar to the first chart, right?
Let’s look even closer….
19002 Zip Code
Same search, narrowed down to a zip code within Montco.
Notice the change?
The number of listings are much lower as compared to a year ago.
But look at the list prices…. they are currently dipping a bit.
Lower Gwynedd
Same search, narrowed down to a Township within zip code 19002
This change is much more significant.
The number of listings are drastically lower.
And the list prices have come down so much more.
So, at this point, we are at a little over 200 results.
And, the neighborhood we are focused on consists of homes of various ages, sizes and quality. Many of the homes are larger, custom built properties and the size of the land varies.
So, depending on the home we are appraising we will need to narrow this search down even more to include specific attributes that would be important to a potential home buyer.
Why is it important to take a closer look?
Because not all markets are the same.
If I had focused in on a different area that has smaller homes or offered a more convenient travel distance to center city, I may get a different result.
So, whether you are buying, selling, or considering the possibility of renovating be sure to contact a home appraiser determine what is going on in your neighborhood real estate market.
If we knew what it was we were doing, it would not be called research, would it?
Albert Einstein
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