Bucks County Home Sales Statistics Through August 2012

The Bucks County Residential Real Estate Market appears to have bottomed out and is now showing signs of improvement.

Statistics for August 2012 vs. August 2011 show an 8.7% drop in the number of homes for sale and a 23.9% increase in the number of homes that settled.

Sale price information is less conclusive.

Figures for 2012, as compared to August figures for 2011, would suggest prices have risen by 7.4%; however, year to date figures for the first eight months of 2012 compared to the first eight months of 2011 show a very slight decrease in prices. Different periods of time produce notably different figures.

Home prices have leveled out but cannot be expected to rise quickly.  The unprecedented rise in home prices between 2000 and 2006 was artificially created by loose lending practices.  We cannot expect home values to again reach their 2006 levels for many years to come.

Now is a great time for buyers to purchase a home.  Mortgage interest rates are extremely low and home market prices do not seem to be getting any lower. For those waiting for the market to bottom out, this may be it.

The Smart Money is Buying Homes

I recently read an article written by the chief economist for the National Association of Realtors.
He stated that 22% of homes sold in August were purchased by investors.  With rental prices continuing to rise and prices at affordable levels, the smart money sees value in real estate.

Some potential homeowners are sitting on the sidelines waiting for home prices to bottom out.  Unfortunately, no one can predict the market.  We won't know when prices have bottomed out  until prices start rising again, and by then interest rates may be higher.

Investors are concluding that real estate at today's prices will provide a good return on their investment. The fact that prices may go a little lower is not deterring them from buying. If investors are right, it may be a good time for potential homeowners who plan to stay put for several years to buy a home.