All markets are not the same and high value home trends often look a bit different.
The house sale terms and conditions, how long it takes to sell and the number of homes listed for sale are rarely the same for those over $1,000,000 as compared to the houses sold for under 1 million.
For instance, It’s not unusual for homes of higher quality, larger square footage and larger acreage to take slightly longer to sell, be limited in turnover and to fall outside of the neighborhood range.
Also, the higher the sale price, the more cash buyers we see in the Philadelphia housing market.
So, it’s important to separate the higher value homes from the general overall sale prices when determining market trends.
This chart shows the home trends for Bucks County and Montgomery County for homes sold below $1,000,000:
This chart shows the high value home trends for Bucks County and Montgomery County – above $1,000,000:
Keep in mind, this data reports the median sale prices of single family homes that have been sold via multiple listings….so it does not include private sales.
As you can see, the median sale prices within the general market (below $1,000,000) has steadily risen over the first 6 months of this year and then began to level off last month.
However, the market reports the median sale prices for higher value homes (above $1,000,000) to have remained relatively steady in 2022 and began to go down in July.
This is just the beginning of the breakdown.
There are also other factors to consider when estimating value.
I feel like now is a good time for an important reminder:
The cost of improvements does not equally increase the market value.
AND the estimate of value is not based upon the cost of improvements.
The market reaction to the improvements determines the market value.
Finally, the estimate of value is an objective, unbiased opinion of value that is reflective of the current market.
Back to High Value Home Trends:
More factors to consider……..
When a buyer of the higher value home in our market area is looking for a specific amenity, age of home or use of land they are typically willing to look in different neighborhoods.
As long as it’s still within a reasonable travel distance to Center City Philly and the Phila International Airport.
Additionally, and this is a BIG ONE:
The prospective home buyer would potentially pay a higher price to have access to a specific area given the opportunity.
OR a lower price if well informed of the median sale prices of that particular school district and/or millage rates.
Are you ready to be well informed?
A search of fee simple, single family high value homes ($1,000,000+) sold over the last 5 years indicates the median sale price for the following school districts to be as follows:
MONTGOMERY COUNTY SCHOOL DISTRICTS
| Jenkintown | $ – |
| Pottstown | $ – |
| Norristown | $ – |
| Pottsgrove | $ 1,025,000.00 |
| Cheltenham | $ 1,034,250.00 |
| Upper Moreland | $ 1,042,500.00 |
| Spring-Ford | $ 1,063,647.00 |
| North Penn | $ 1,106,625.00 |
| Lower Moreland | $ 1,150,000.00 |
| Boyertown | $ 1,150,000.00 |
| Perkiomen | $ 1,155,055.00 |
| Upper Dublin | $ 1,162,500.00 |
| Methacton | $ 1,175,000.00 |
| Abington | $ 1,189,500.00 |
| Souderton | $ 1,197,500.00 |
| Upper Perkiomen | $ 1,250,000.00 |
| Hatboro-Horsham | $ 1,254,200.00 |
| Springfield | $ 1,259,100.00 |
| Upper Merion | $ 1,284,500.00 |
| Wissahickon | $ 1,352,500.00 |
| Lower Merion | $ 1,367,000.00 |
| Colonial | $ 1,400,000.00 |
| Bryn Athyn | $ 1,647,500.00 |
BUCKS COUNTY SCHOOL DISTRICTS
| Bristol Twp | $ – |
| Bristol Boro | $ – |
| Morrisville | $ – |
| Easton | $ – |
| Souderton | $ – |
| Bensalem | $ – |
| Centennial | $ 1,025,000.00 |
| Neshaminy | $ 1,031,000.00 |
| Pennsbury | $ 1,110,000.00 |
| Pennridge | $ 1,150,000.00 |
| Central Bucks | $ 1,212,000.00 |
| Council Rock | $ 1,305,000.00 |
| Quakertown | $ 1,312,850.00 |
| Palisades | $ 1,350,000.00 |
| New Hope-Solebory | $ 1,400,000.00 |
Hope this helps you in some way…. always happy to chat if you have questions.
Have a beautiful day!
“Yesterday I was clever, so I wanted to change the world. Today I am wise, so I am changing myself.”
Rumi
