How's the Bucks County Housing Market Doing?

The real estate market in Bucks County improved in 2013. Demand increased significantly with 38% more homes selling in 2013 than in 2011.

While demand has increased considerably, prices have been fairly stable with an increase of 2.5% over the past two years. The following chart illustrates these trends:

Year Number of
Homes Sold Price Increase or (Decrease)
2013 6,106 2.4%
2012 5,117 .1%
2011 4,423 (5.5%)
2010 4,560 4.3%
2009 4,829 (6.8%)
2008 4,806 (6.7%)
2007 6,048 .6%
2006 6,408 4.1%
2005 7,454 11.6%
2004 7,470 13.1%
2003 6,893 10.0%
2002 6,429 15.6%
Source: MLS Trend

The reason for the prices not increasing relative to the demand is that buyers and lenders are being cautious. The real estate bubble was created by over optimistic predictions of future home values and loose lending practices. Through the internet, buyers have access to information regarding past sales and are able to compare values. They are reluctant to pay more for a home than were recently paid for comparable homes, and lenders are being more cautious in financing those purchases.

The prevailing sentiment of the early 2000’s was that home values will always rise and homes are always an excellent investment has been discredited. Buyers today are less likely to buy a home that they do not consider a good value.