Sales Still Struggling in Our Area

Market Report: Residential Home Sales Fall 3% in February, in our Area


Statistics are courtesy of MLS Trend and KCM.com

Residential sales activity for southeastern PA, southern New Jersey and Delaware dropped 3.8% in February 2011 compared to a year ago, according to statistics generated by MLS Blue. There were 2,785 sales reported in February 2011, compared to 2,896 in February 2010.

Two counties saw increases in sales activity, with the highest percentages in Chester County, PA (24.4%) and Mercer County, NJ (20.3%).

Of the remaining counties, the highest percentage decreases in sales were Salem County, NJ (25.0%), Montgomery County, PA (11.6%), Delaware County, PA (11.4) and Gloucester County, NJ (10.1%).

Sale Prices Decrease Slightly
Average sale prices decreased 2.3% when comparing numbers from February 2011 to February 2010. Overall, average sold prices increased in 5 counties.

The highest increases were:

• Delaware County, PA – 9.0%
• Philadelphia County, PA - 4.1%
• Montgomery County, PA – 3.5%

The highest decreases were:

• New Castle County, DE – 16.7%
• Kent County, DE – 16.4%
• Chester County, PA – 10.1%

Two counties saw higher median prices. Camden County, NJ led the way at 15.6%, while Salem County, NJ had the largest decrease at 21.8%. Bucks County, PA was unchanged.

Pending Sales Drop by 11%

Pending sales in February 2011 decreased in 10 counties compared to February 2010. Sales were 3,959 in February 2011 and 4,462 in February 2010.

The highest increases were:
• Kent County, DE – 25.3%
• New Castle County, DE – 20.3%
• Salem County, NJ – 11.1%

Individually, the highest decreases were:

• Camden County, NJ – 21.4%
• Bucks County, PA – 20.8%
• Philadelphia County, PA – 19.6%

Inventory at the end of February 2011 stood at 48,025 an increase of 2.8% from 46,671 in February 2010.

Comment from John Herreid: The inventory increase is another data point that shows we still have a lot of work to do to get out from under the inventory bulge that is the basic driver of soft and decreasing prices in our area.

Another large part of the inventory overhang problem, as per KCM.com, is that we have about an estimated 10 months of inventory across PA that is distressed , meaning it is heading for either a Short sale or Foreclosures. Short sales typically sell for about 81% of the full value of the property; foreclosures sell for about 59%. If you are interested in seeing what short sales and foreclosures are available in your area, please contact me at delcorealestate@gmail.com.