Market Insights

New Construction Projected To Increase This Year

February 11, 2014 by admin

The National Association Of Home Builders (NAHB) has profiled the average new construction home built in 2013. The average new home was built on a lot size of 14,359 square feet, which is approximately 1/3 of an acre, and the typical home featured 2,607 square feet of finished interior space. Buyers paid on average $399,352 for a new home in 2013 with the average construction costs of the home averaging 62% of the sales price.

New home sales are averaging 8.7% of total home sales – barely half the historical average of 16.1 percent, according to NAHB. The NAHB projects 1.15 million total housing starts in 2014, up nearly 25 percent from the 2013 total of 928,000 units. Single-family production is expected to increase 32 percent in 2014 to 822,000 units, and then rise an additional 41 percent to 1.16 million units in 2015.

In Wallingford PA new construction accounted for 2.1% of sales for 2013. The 4 newly built homes sold for an average of $418,825. There were was no new construction sold in Swarthmore during the past year.

Wallingford PA Real Estate – Wallingford, PA 19086

Wallingford And Swarthmore Buyers Are Ignoring The Winter!

February 3, 2014 by admin

Wallingford PA Real Estate - Wallingford PA - SNow Covered Stop Sign

There Is No Stopping Buyers So Far This Winter

Despite continued weather conditions that seem inhospitable to consumer buying of any sort the Wallingford PA and Swarthmore markets have been very active this winter so far. Amid economic reports of declining retail sales due to bad weather homebuyers in the area are proving to be an exception.

A common measure of real estate activity is known as the absorption rate which measures the rate of sale of a given market’s inventory. The calculation is very simple and uses the number of active listings on the market divided by the number of listings that have gone under contract in the past 30 days. In retail this would be analogous to the term inventory turn. In real estate a rate that is below 6 indicates a seller’s market, 6 is a neutral market, and a rate above 6 indicates a market where the buyer’s are in control. So what does this measure tell us about our local markets?

Wallingford:

The absorption rate stands this morning, amid our latest winter event, at 3.9 months. There have been 19 homes that have gone under contract in the past 30 days amid 74 active listings. This portrays a strong seller market where there is a lack of inventory, and according to basic economic theory will result in higher prices – too many buyers chasing too few homes.

Listings that have the most appeal to buyers are moving quickly, 4 of the listings that went under contract were on the market 7 days or less, and even homes that have seen extended time on the market are selling as well.

A oft heard lament among agents and buyers alike this year so far has been a lack of inventory available.

Swarthmore:

The activity in Swarthmore is even more pronounced. The absorption rate today stands at 1.2 months – there have been 10 homes sold in the past 30 days amidst 12 listings. That is a rate that basically indicates homes selling as soon as they hit the market. The under contract group as a whole averaged 47 days on the market, but the 5 quickest sales were on the market 6, 8, 9, 11, and 18 days.

If you are a buyer under these conditions you should ally yourself with a local agent who knows the area well and can keep you informed of listings before they come onto the market though their networks, and be ready to act quickly on a listing that have mass appeal.

If you are a seller considering listing your home all the indicators are pointing to a market that will continue to need more inventory to keep up with the market demand, which is a situation that has not been seen for quite sometime.

The Spring Market is off to an early start and should be a very active one.

Wallingford PA Real Estate – Wallingford, PA 19086

What State Has The Most Millionaires?

January 28, 2014 by admin

Want meet a millionaire? Your best bet would be to head just south to Maryland to find the state with the most millionaires in 2013 according to CNNMoney.

Maryland has the largest millionaire population and the highest ratio of millionaires to households in the nation, with 7.70% of households in the state boasting that moniker.

Pennsylvania has a ratio of 5.24% of millionaires to households. New Jersey takes second place in the list with a 7.49% ratio, and Delaware is in 9th place with a ratio of 6.20%.

Mississippi has the distinction of having the lowest number of millionaires among it’s population at 3.63%.

The top millionaire states From “Where America’s Millionaires Live,” CNNMoney (January 2014)

1 – Maryland: 7.70%
2 – New Jersey: 7.49%
3 – Connecticut: 7.32%
4 – Hawaii: 7.18%
5 – Alaska: 6.75%
6 – Massachusetts: 6.73%
7 – Virginia: 6.64%
8 – New Hampshire: 6.48%
9 – Delaware: 6.20%
10 – California: 6.04%

Wallingford PA Real Estate – Wallingford, PA 19086

Buyers Are Out In Force

January 20, 2014 by admin

Having 4 to 6 groups of visitors come to an Open House would be considered a good turn out. The Open House I held yesterday on Palmers Lane in Wallingford was attended by, at my best count, 32 groups of visitors who showed up, which amounts to over 75 people since many attendees come with a host of characters. This is a very strong and unusually large turnout for any time of the year.

I had the opportunity to speak with many visitors, but not all, since it was so busy, and there some common themes these prospective buyers shared.

A Lack Of Inventory:

Many people commented on the lack of inventory in the Wallingford area, and they consider what is on the market as stale and they are anxious for new listings to come onto the market, and they are ready to buy!

Concerns About Mortgage Rates:

Talk about rising interest rates has some buyers starting their search sooner than planned in an attempt to buy before rates head upward.

Education Matters:

I spoke with 4 young couples who were either expecting or had pre school age children and are currently living in Philadelphia. The reputation of the Wallingford Swarthmore School District remains a powerful draw for young families.

Virtually all buyers attend an Open House/s during their search process, and it seems that the Spring real estate market is starting a bit earlier than usual, and there are buyers out in force looking in our community, all good signs for a strong Spring market.

Wallingford PA Real Estate – Wallingford, PA 19086

Housing Market Gains Statewide In 2013

January 14, 2014 by admin

Wallingford PA Real Estate - Wallingford PA - Pennsylvania Housing Market Posts Gains Over 2012 In 2013

The Pennsylvania Housing Market In 2013 Posted Gains Over 2012

2013 results locally were mixed with the Wallingford PA market recording a 21.9% gain in closed sales, and the Swarthmore market finishing with a 11.4% decrease in homes sold. Both markets showed increases in the average selling price. Across the Commonwealth of Pennsylvania the housing market showed signs of positive growth and momentum.

More about the market’s positive upswing statewide in 2013.

By Author: Kim Shindle, Manager of Media Relations at the Pennsylvania Association of Realtors®.

Wallingford PA Real Estate – Wallingford, PA 19086

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S. Clark Kendus