Market Condition Report

"Inventory Accumulation" chart by County

Chart on "Number of Homes Sold and Average Prices" by County

Housing and Economic Recovery Act of 2008

The Hows and Whys of the Housing Crisis, Sept 2008

Little-known provision of Housing Bill, August 2008

Chairman's Report, June 2009

Some of the link above are in PDF format, which is readable by most computers today that has an Acrobat Reader.  If you do not have an Acrobat Reader, you can download one for free and install it on your computer.

<<Acrobat Reader Download>>

We provide real estate services to buyers and sellers in Pennsylvania (Berks County, Chester County, Delaware County, Montgomery County, Philadelphia, Drexel Hill, Haverford Township, Havertown and Upper Darby) as well as in New Jersey (Brigantine, Atlantic City, Ocean City, Camden County and Gloucester County).
 

Note:  Source of raw data are from TrendMLS.  Analysis personally performed and maintained by Danny Cachuela.
 

Inventory Accumulation Chart

Click here for full explanation of Inventory Accumulation and how it is used to measure the balance or imbalance between supply and demand.

The premise here is that a balanced market will have about five month's supply of inventory of available homes.  The Inventory Accumulation Chart shows the number of months supply of inventory, which could change because either the demand is changing, or because the supply is changing.  Usually, it is the combination of both.  What the Inventory Accumulation number does not show is the cause of the change.  The Inventory Accumulation Chart shows the source of the change by presenting both the current inventory level of homes and the "equivalent" of five months of demand based on the average homes sold for the past twelve months.  Note that the focus here should be on the trend and not the exactness of the number.
 

Five-Month Demand

This chart is calculated based on the average number of homes sold for the past twelve months.  Home "sold" is the number of Pended transaction, not Settled transaction.  An equivalent of five months of units sold is then calculated.

Average Price

The chart presents average prices computed using a twelve-month moving average price of homes that sold -- i.e., settled.  To illustrate the moving average calculation, the twelve-month average for June includes July of prior year through June of current year, July includes August of prior year through July of current year, etc.  The averaging process smoothes the fluctuation from one period to another.

It is important to note that, strictly speaking, this average price change does not necessarily constitute property appreciation.  It is possible that more expensive homes are selling in one period compared to another.  This chart simply shows the "average prices" of homes that sold.  However, when dealing with a large population, this could be generally construed as reflective of appreciation assuming no significant change in the mix of homes being sold.

Be sure to review the article included here on Local Market Condition Report to ensure that wrong decision is not made based on the information presented.  The charts presented here are strictly for informational purposes.  Keep in mind that homes are usually bought and sold over a long period of time; and over a long period of time real estate almost always appreciates.  For this reason, it does not make sense to try to time the market.  Unfortunately, the mass media sensationalizes on the bad news because that is what sells -- not the good news.  Therefore, understanding this normal market behavior will, hopefully, calm down those who are affected by the media.

Danny Cachuela makes this information available for the Pennsylvania Counties of Berks, Chester, Delaware, Montgomery and Philadelphia, as well as Camden and Gloucester County, New Jersey.   This information is published through Realty Times, Realtor.com, Yahoo and a host of other websites.  If you want to know about other specific market area, contact Danny Cachuela and he will be glad to provide you the information.

• Berks County

• Camden County (New Jersey)

• Chester County

• Delaware County

• Drexel Hill

• Gloucester County (New Jersey)

• Haverford

• Montgomery County

• Philadelphia

• Upper Darby Township

Choosing your Agent wisely. Any agent will show enthusiasm and will want to list your house for sale but choose your agent based upon:

1. Experience at listing and marketing houses for sale.

2. Ability to use technology for marketing your house worldwide to buyers 24/7.

3. Reviewing with you a comprehensive Marketing Analysis of home sales in your area.

4. Ability to offer a written step-by-step MARKETING PLAN that will get your house sold at the highest possible price.

Working with a full-time professional real estate agent is a must.  Choose your agent by asking questions of him or her.  Find out how knowledgeable they are about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates to assist your new buyer with financing?  A good listing agent can get your house sold quickly at TOP DOLLAR and help you find a new home.

To receive your FREE copy of Homebuyer's Handbook or Homeseller's Handbook, click here.
 

Last modified:  09/02/2010