First Quarter 2010 Market Update

The first quarter of 2010 showed us promising signs and figures, indicating the real estate market is slowly, but surely, making a turn.

During the first quarter, there was a huge surge in the number of homes listed for sale. Typically spring is a busy month when it comes to listing homes, but this year homebuyers had extra motivation from the expiring homebuyer tax credits. In Philadelphia, Montgomery, Bucks, Chester and Delaware counties, the number of homes listed for sale rose from 14,000 to 19,000, almost a 50% increase from the 4th quarter of 2009.

In addition to the growth in homes for sale, the number of homes under contract during the first quarter surged 20%. In the last quarter of 2009 there were 7,500 under contract. By the end of the first quarter, this figure rose to 9,100 homes. The effect of these home sales will become visible in the next month or so when transactions are completed and reach the settlement table. This trend is anticipated to continue through the next quarter, as buyers will be rushing to go under agreement before the homebuyer tax credits end.

The average sale price of homes increased in the first quarter of 2010, as well. High-end homes, which had almost completely lost their presence on the market, are starting to be listed and sold. This is an indication that homeowners are gaining confidence in the real estate market- a critical step in the recovery process.

Overall, consumer confidence during the first quarter crept up from 51 to 52. This improvement, while slight, is still a move in the right direction. In the months ahead, consumer confidence is expected to continue slowly and steadily increasing.

The first quarter has been very promising, and is, hopefully, the beginning of a mending real estate market.

If there is any real estate related information that I can provide you, please feel free to give me a call.