June Housing Market: Optimism and Uncertainty

June Housing Market: Optimism and Uncertainty

New Listings Rise

In Bucks, Montgomery, and Chester Counties, the number of new listings rose this June compared with May, as more sellers became comfortable allowing buyers into their homes.

The number of new listings also rose this June compared with last June in two of the three counties. New listings rose in June by 4.9% in Montgomery County and 7.6% in Chester County, but fell 2.5% in Bucks County compared with June one year ago. The number of houses for sale was already low last year, and though June’s increase in homes coming onto the market was welcome, new listings had been down dramatically this April and May, so inventory is still low in many areas.

Prices Up in Some Counties

Average prices changed moderately this June compared with one year ago. Here are the percent changes in average sold prices in June 2020 compared with June 2019:

Chester County   + 1.51%
Montgomery County   + 0.79%
Bucks County   - 1.97%

Looking Forward

Interest rates remain very low, giving buyers an incentive to enter the market, and Pennsylvania’s unemployment rate started to fall in May. The rate dropped to 13.1% in May from a high of 16.1% in April, according to PA’s web site. Pennsylvania’s June rate is scheduled to be released July 17. If the rate fell again significantly in June, it should boost confidence and help the housing market. This optimistic view is counterbalanced by the uncertainty of COVID-19 and whether Pennsylvania’s recent rise in cases will continue, potentially dampening the market.

Housing statistics from BrightMLS as of June 6,2020.

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