Home sellers in the Northeast have yet to experience a turn-around in the housing market. Foreclosures and distressed property sales (short sales) are the hardest problem to overcome in terms of sold price and days on the market. These sales definitely brought the sale price down in our neighborhoods and the average days on the market up last year.
2011 Residential Statistics in the 19111, 19114, 19115, 19116, 19149, 19152, and 19154 zip codes combined:
– A total of 2,457 residential homes were sold. This number is 258 less than last year and down almost 800 from 2009.
– Average List Price fell again in 2011 to $160,000. It was $169,000 in 2010 and $172,000 in 2009.
– Average Sale Price was down again last year at $148,000 compared to $158,000 in 2010 and $161,000 in 2009.
– Average Days-on-Market went up to an average of 80 days in 2011 compared to 62 in 2010 and 65 in 2009.
Currently in Northeast Philadelphia, there is a seven-month supply of homes on the market. What does that mean? Well, according to the absorption rate, the Northeast is definitely a “Buyer’s Market.”
Interpreting the Market Trends with the Absorption Rate:
- A six-month supply of homes represents a “Balanced Market.”
- Numbers falling below six represent moving towards a “Sellers Market.”
- Numbers rising above six represent moving towards a “Buyers Market.”
The Northeast’s absorption rate hovered nicely around six for the better part of 2010 since it was such a great time to buy, with the great interest rates and tax incentives. Since the tax incentives were no longer available in 2011, we’ve accumulated a large supply of homes for sale and not enough buyers who want to purchase them.
The good news is 2012 starts out as the best time to buy in Northeast Philadelphia the last six to seven years in terms of sale price and interest rates.
Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.