Chester County Quarter 2: Real Estate Market Predictions

The real estate market in Chester County, PA is heating up! With low inventory and high demand predicted to continue here is a quick read on what to expect and how it may affect you as a buyer, seller, or investor here in the Greater Philadelphia suburbs. As a result, homebuyers are facing more competition for the limited number of properties available, while sellers, if priced strategically, have a good chance at receiving multiple offers with TOP-DOLLAR pricing and flexible terms and settlement timelines.

New Construction Homes

According to experts, the leading way to correct this shortage of inventory is to build more homes. Looking at the statistics, we had been significantly underproducing the amount of new construction homes that were needed for years. With an ever-growing population and high demand for housing, new construction is necessary to keep up with the market. We are now starting to see the number of new construction opportunities ramp up and finally hover around the needed trend line, which is good news for buyers! However, due to how below trend we'd been able to produce for years the affects of this will be gradual and take time to fully surmount to where we need it to as not just a community, but nation. 

Buying a Home

If you're thinking about buying a home in Chester County, it's important to understand that you will need to act quickly and decisively. Start by getting pre-approved for a mortgage BEFORE you start touring properties. You will also need to work with a trusted real estate expert to find properties that meet your needs and fit your budget the second they hit the market. Speed to getting into a property is going to be crucial. It is also a big decision, but due to the amount of buyers that are typically looking at the same properties (again because of the lack of inventory over the last few years) you will need to be prepared to make a decision fast when you find a property you like, especially if it is a multiple offer situation. You should also understand that listing price is not always equal to the value of the property or what someone else is willing to pay, so when submitting your offer do not let the idea of "going over ask" scare you away. Your agent should be able to provide you with a list of the most recent comparable sales that support the value of the home (this is what appraisers also look at when evaluating a property's value) and get a cost estimate sheet from your lender. If the monthly payment makes sense, don't let the price tag itself stop you. Interest rates are predicted to stay pretty consistent in that 5-7.5% range, which are consistent with historic average. Also, when submitting offers explore all of the options as far as terms and contingencies with your agent, it is not just about price anymore, and the days of just the highest bidder winning are behind us. 

Selling a Home

On the other flip side of the market, if you're considering selling your home, now is an excellent time to do so. With demand at a high and competition still too low to satisfy demand, if you price your home strategically you have a greater chance to receive multiple offers and potentially get above the asking price. However, it's important to work with an experienced real estate agent who can provide you with an in-depth market analysis and property evaluation to help you understand your best strategy entering into this market.

Placing that ask price at the highest number you think you can get is not always in your best interest, and in fact is still predicted to result in less offers and longer days on market. The way you should be positioning yourself in this market, in order to get the most out of it, is "How do I get the most amount of viewers to see my property, actually want to tour my property, and be willing to fight for it?" The answer is STRATEGY, STRATEGY, STRATEGY!  You want a fair marketing price (the price you advertise with) and quality listing photos and videos. You also want to make sure that the quality and potential of your property is maximized and shown off during showings in addition to the marketing, which your agent should be able to come up with a game plan for this.

When reviewing offers, also be sure to look at the terms and contingencies aside from just the price. As a seller you want the highest amount you can get with the safest odds of you getting to closing at that price, and on a timeline that makes sense for your situation. 

In conclusion, the Chester County real estate market is expected to remain competitive in Q2, with low inventory and high demand driving prices. Whether you're buying or selling, it's important to work with a trusted real estate professional who is knowledgeable in the area and market you are looking for and can help you navigate the market with confidence. Contact us today to learn more about how we can help you achieve your real estate goals.

At the Moore Maguire Team, we specialize in helping buyers and sellers navigate the Chester County, Delaware County, Montgomery County, and Philadelphia County real estate markets. Our team of experts has guides & tips to help you understand the process and the market and they can provide you with actual tailored guidance and support throughout the buying and/or selling process, ensuring that you get the best possible results and accomplish all of your real estate goals.