Harleysville-Lansdale Real Estate and More: First-Time Buyers Drive the Real Estate Market in Montgomery County PA

According to a National Association of Realtors^® survey conducted in March, "first-time buyers accounted for 53% of transactions".  First-time buyers are definitely boosting the real estate market in Montgomery County PA.  For homes in the County priced from $200,000 to $300,000 (largely a first-time buyer market segment in our area), the number of homes pended in April increased by 18% from the Q1 monthly average and 63% from the dismal monthly average for November through January.

While this is welcome improvement, Montgomery County's April pending home sales for this price range are still down by 30% and 24% versus the same month in 2007 and 2008, respectively.  So, we still have a ways to go, but are headed in the right direction.  By comparison, April's pending sales for homes priced above $400,000 (not typically first-time buyers) remain down by 57% and 52% versus the same month in 2007 and 2008, respectively.  Like most areas of the country, our upper prices ranges continue to struggle quite a bit more.

Not burdened with another property that must be sold, first-time buyers enjoy an advantage that makes them very attractive to would-be sellers.  Combined with lower home prices and historically low interest rates, these reasons alone provide plenty of incentive for a buyer to enter the real estate market.  However, first-time buyers overwhelmingly cite the $8,000 tax credit as a significant motivator in their decision to buy.

From personal experience, seven of my last eight transactions all involved a first-time buyer; most specifically mentioned the tax credit as a factor in their decision to buy.  From a Realtor's^® perspective, the above are all reasons to welcome this market segment into one's business plan.  More than any other market segment, they're the ones who are willing and able to buy a home right now.  As an added reason, I also find that they are more eager to listen, learn, and benefit from the experience and knowledge of a good Realtor^®.

- Scott

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 to buy or sell a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania.