New listings plunged in April in Bucks, Chester, and Montgomery
Counties, as COVID-19 continued to affect the housing market. Not only were new listings down compared with
the previous month, but they were down dramatically when compared with April of
last year.
The number of new sales also fell, but not as precipitously,
while average sale prices rose substantially in all three counties.
New Listings Plummet
As the following numbers show, the percentage drop in new
listings in April 2020 compared with April 2019 is dramatic:
Bucks County - 69.78%
Montgomery County -
68.30%
Chester County - 64.61%
Number of Sales Falls
The percentage drop in the number of sales during April 2020
compared with April 2019 is not as stark but is still large:
Bucks County - 29.21%
Montgomery County -
31.12%
Chester County - 23.27%
Average Sale Prices Rise Significantly
In April, average sale prices continued the upward trend we
saw in March and are considerably higher than during the same period last year.
Here are the percentage increases in average sale prices in April 2020 compared
with April 2019:
Bucks County + 11.33%
Montgomery County: +
12.67%
Chester County +
12.84%
April sale prices probably reflect some agreements signed in
March and February, when COVID-19 was affecting the market to a lesser degree.
Going Forward
PA’s economy has been hit hard by COVID-19, with 1. 5 million
unemployment claims filed in the state as of April 23, according to CNBC. Interest
rates are still low, which typically favors a strong housing market, but high unemployment
tends to reduce the demand for housing. There is no precedent for current market
conditions.
Recently, some sellers have listed their homes with the understanding
that they can be viewed only virtually, with no in-person showings until the governor
lifts the stay-at-home order. Others have decided to wait until conditions improve.
Governor Wolf has indicated that the stay-at-home order will be lifted on a
regional basis, depending on the level of improvement in new COVID-19 cases in each
part of the state. Separate from the
phased re-opening, the governor has allowed construction work to begin as of
May 1.
Housing statistics from BrightMLS as of 5/1/20.
Read more of Annette’s
real estate articles for the latest real estate advice.
If you’re planning to buy or sell a
home, contact Annette Nelson at (610) 247-7892 or annette@preferredhomes.com
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