Harleysville-Lansdale Real Estate and More: Montgomery County, PA Market Report for October 2009

The Montgomery County, PA Market Report for October 2009 shows a continuation of recent patterns; home prices again declined from the previous year’s level while the number of home sales rose.  

The average price of a home in Montgomery County dropped to $285,817 compared to $304,327 for October, 2008; an 8.2% decrease.  This marks the 23rd consecutive month in which home prices have fallen from the prior year level.

The number of homes sold this past October increased to 731 units versus 604 homes sold in October of the prior year; a 21% increase.  This marks the 4th consecutive month that the number of homes sold has increased from its prior year level.

How is it possible that home sales are increasing, but home prices continue to fall?  In a very general sense, the overall decrease in housing prices has caused some buyers to step into the market and snap up good deals.  Specifically and probably to a larger extent, the first-time buyer tax credit has resulted in an abnormally high number of sales at the lower price ranges of the market.  Also, housing inventory remains relatively high at approximately 8.5 months (even with October’s impressive sales rate).  Housing Inventory is the number of months it would take to sell all of the currently listed homes at the current seasonally adjusted monthly sales rate.  Until we start to consistently see housing inventory down near 6 months of supply, look for continued (but hopefully moderate) pressure on home prices.

To get a sense of the broader national housing market (which will certainly have some effect on our local housing market), check out my blog from this past weekend:  Market Outlook: The Calm Before the Storm.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Copyright © 2009, The Scott Loper Team, All rights reserved. Montgomery County, PA Market Report for October 2009.