Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

Is Now The Time To Buy Chester County Real Estate?

by Scott Darling

At a recent lecture at the New York University Club, millionaire hedge fund operator John Paulson, who is often touted as an investment genius, enthusiastically urged members of his audience to buy real estate--now! Echoing the September Forbes report, Paulson stated that “this is the best time in 50 years to buy a home,” and he maintained that securing a 30 year mortgage with record low interest rates is a wise and safe investment.

While there are those in the real estate field who disagree with Paulson’s views, there is an increasing number of factors chester county real estatewhich supports his advice, among them reduced house prices, increased negotiating power, very low interest rates, and the rapidly growing availability of Chester County real estate.

Those considering the purchase of a home should be forewarned, however, that lenders have tightened their requirements for qualifying for a mortgage. Generally speaking, applicants who want a 30 year fixed loan at a low interest rate must have a credit score of at least 720, a well-paying and secure job, money for a down payment, and a financial situation which makes buying Chester County real estate feasible. Pre-approval for a loan is a must before making an offer on any home.

1. PRICES: Prices of Chester County real estate are generally lower today than they have been in many, many years and do not show signs of increasing quickly, so it is possible to get more house for the money than in recent years. Buyers should be prepared to occupy their homes for 5 to 10 years to see any significant gain, but most realtors agree that spending money on a monthly mortgage payment is far wiser than putting it towards rent. The substantial addition of foreclosures and short sales also provide an opportunity to buy at a (often greatly) reduced price

2. NEGOTIOATIONS: Because homes currently on the market are extremely slow to move, sellers are generally more than willing to negotiate with a potential buyer in matters such as price, financing, repairs, closing costs, occupancy time frame, and the like. Buyers definitely have negotiating power right now.

3. INTEREST RATES: Interest rates are currently quite low, and buying Chester County real estate now at these rates can result in substantial savings and/or purchasing power. For example, if you’re looking for a loan around $400,00, each point decrease gives you $50,000 in purchasing power, and with 20% down, the difference between a mortgage payment for a $425,000 home and one worth $525,00 is only $32!

4. AVAILABILITY: As the economy worsens and unemployment rises, the number of foreclosures and short sales increase greatly, resulting in an abundance of available homes for sale. Buyers have a much wider selection in terms of location, price, and size from which to choose and can often obtain features they have been unable to afford in the past. What used to be a “dream house” may now become a reality

So, is now the time to buy Chester County real estate? For many the answer is a resounding “Yes”!

Chester County Real Estate Sales Statistics - August 2010

by Scott Darling

Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery, according to the National Association of Realtors. The recovery looks to be a long process with job numbers being lower than expected in the last couple of months. However, affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.

Take a look at how the Chester County real estate market fared in August.

Downingtown Area School District saw a 1% increase in active listings in August 2010, compared to August 2009.  Pending listings have decreased by 41% and sold listings have increased by 3%.  There was a 23% increase in average sales price to $424,393, while market times increased by 35 days.

Downingtown

Active
Listings

Pending
Listings

Sold
Listings

Average
Sales Price

Average
DOM

Aug 2010

89

33

50

$424,393

105

Aug 2009

88

56

56

$327,989

70

In the West Chester Area School District, there was an decrease in Sold listings  of 21% when compared to August 2009.  And pending sales decreased by 21% in August 2010 when compared to August 2009.  Average sales price increased by 20% to $420,683 and active listings increased by 1% from August 2009.  Market times have increased by 15 days.

West Chester

Active
Listings

Pending
Listings

Sold
Listings

Average
Sales Price

Average
DOM

Aug 2010

139

63

88

$420,683

80

Aug 2009

138

79

111

$337,170

65

Sold listing have decreased by 34% in the Coatesville Area School District in August 2010 when compared to August 2009.  The average sales price decreased by 4% to $207,019 and active listings decreased by 36%.  The number of pending home sales decreased by 37% when compared to August 2009, while homes were on the market on average 4 days less than in August 2009.

Coatesville

Active
Listings

Pending
Listings

Sold
Listings

Average
Sales Price

Average
DOM

Aug 2010

90

37

45

$207,019

65

Aug 2009

141

59

68

$214,695

69

A word of caution...markets within a school district can be very different from neighborhood to neighborhood. For the latest Chester County PA real estate market conditions in your neighborhood, please call me at 610-564-SCOT or visit ChesterCountyHomeSource.com.

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

Contact Information

Photo of Scott Darling Real Estate
Scott Darling
RE/MAX Action Associates
403 W. Lincoln Highway #101
Exton PA 19341
(610) 594-SCOT
610-363-2001
Fax: (610) 363-5275