Upper Makefield (Bucks County) Home Sale Statistics through 10/31/2011

The homes in Upper Makefield Township  greatly differ  in size, amenities and price.  There are many homes in the $1 million to $5 million price range, many in the $400,000- $600,000 range and some small cottages priced between $250,000 and $400,000.  It is a relatively rural community with a low population; so, there are not as many sales as in neighboring townships.  Therefore, sales statistics can be skewed a few high priced homes selling within a  time period.  Although the figures from one year to the next may not necessarily represent a clear trend, it is obvious that selling homes in the luxury price range of over $1million is challenging.  Buyers in this price range have the opportunity to purchase a luxury home for prices significantly less than they would cost to build.

UPPER MAKEFIELD TOWNSHIP

SINGLE FAMILY HOMES

Market Facts as of OCTOBER 31 Year to Date 2011

Source: COLDWELL BANKER HEARTHSIDE REALTORS MARKET RESEARCH from TREND MLS Data

        Inventory of homes for sale in Oct 2011 was 126

Inventory of homes for sale in Sep 2011 was 133

Inventory of homes for sale in Oct 2010 was 150

Inventory is down 16% year over year,

And down 7 homes (5%) sequentially from Sep 2011

        Avg. price of a home for sale in Oct 2011 - $1.17 million

Avg. price of a home for sale in Oct 2010 - $1.16 million

List prices in inventory are up ~1%, the avg. price stat is driven by # of homes priced in $1-3+ million, ~$402k difference between Avg. Sold versus Avg. Inventory Price; review specific property Comparative Market Analyses for pricing direction & check Median/Average Prices

        76 homes sold as of Oct YTD 2011 at 87% of list price

        84 homes sold as of Oct YTD 2010 at 90% of list price

Unit Sales volume is down 9.5% year over year, contrasted with Full Year 2010 Unit Sales which were up 27.4%

Buyers achieving approx 13% discount from Original List Price

Summary:  Inventory levels are down as are YTD Unit Sales.  Notably, at current Sales pace there is a 17.8 Month Supply of Homes in Inventory, at all price levels.  Buyers are still achieving “discount” leverage in negotiation – at an increasing spread versus last year.  Market is viewed as a clear “Buyers Market”.  Note that a Market is viewed as “Balanced” with 6 Months of Inventory.

What does this mean to a seller?

There is a substantial inventory of homes on the market (particularly in $1-3 million range), generally for longer periods of time, so the competition is challenging.  Average Days on Market is 165 (all price levels).   During 2010, most (75%) of the homes sold closed at prices under $999k.  Currently, ~40% of the homes (50 of 126) on the market are priced above $1 million, and this represents a 33.3 Month Supply at current sales pace (~1.5 per month).  It is more important now than ever to price your home right and market aggressively.  You may not have enjoyed the positive per year appreciation in recent years versus what was experienced during years 2000 - 2006. Be realistic and remember the current market is what determines the price of your home.