August 2009 Central Pennsylvania Real Estate Sales Report
The real estate activity for August does provide some interesting insight to what is occurring. Namely that the average sales price ($188,352) declined by approximately 13% from August 2008; and at first, that appears to indicate we have not reached the bottom. That may be true, but it is my opinion that it has to do more with the first time home buyers tax credit and buyers taking advantage of the credit, which in many transactions impacts the lower priced homes rather than the market falling off the cliff. In many instances, that is good news because the underpinnings of the market needs for the lower priced homes selling before the higher ones occur. So I think the basing process that I have mentioned in previous months is continuing and we will see a stabilized market by the end of this year..
Again with respect to an extension of the tax credit into 2010, it is still a guessing game whether it will remain in tact, be modified or the dollar amount increased. As we all know, there is a great deal of talk in Washington and little action. I hope that changes. If you are still considering using the tax credit, please remember that the sale has to be finalized by November 30, 2009. So, it would be my recommendation that every buyer have a home under contract no later than September 30, 2009 due to changes in some of the financing packages available.
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Average Sales Price August 2009
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West Shore
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| Municipality |
2008
|
2009
|
Days on Market
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| Camp Hill |
$236,107
|
$194,569
|
67/114
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| Mechanicsburg |
$170,900
|
$155,692
|
55/56
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| New Cumberland |
$179,967
|
$150,071
|
42/76
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| East Pennsboro |
$178,311
|
$184,518
|
55/44
|
| Hampden Township |
$320,788
|
$222,514
|
68/76
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| Silver Spring Township |
$316,397
|
$260,998
|
48/50
|
| Upper Allen Township |
$255,085
|
$218,879
|
77/50
|
| Lower Allen Township |
$199,725
|
$192,367
|
41/40
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| Fairview Township |
$317,407
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$220,567
|
61/92
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East Shore
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| Lower Paxton Township |
$275,963
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$202,290
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71/88
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| Derry Township |
$317,767
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$206,258
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72/88
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| Swatara Township |
$155,068
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$148,783
|
58/70
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| South Hanover Township |
$268,265
|
$240,103
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21/73
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| West Hanover Township |
$195,318
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$197,655
|
74/59
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As you can see, there are some substantial variance between 2008 and 2009. My research shows that in a few communities there were some higher priced homes settle that are out of the norm and misrepresented a more stable environment that normally occurs. But a very positive indication is that in approximately 75% of the selected communities have seen a decrease in the days on market when compared to July 2009. And I know of multiple offers on selected homes reappearing and that in, my estimation, is a very good sign. Again, as before, if there are any real estate related questions, please contact me at your convenience at 717-579-2879 or email at Don@DonRoth.com. Also, please check out my web site for probably the most current information on homes that are currently for sale in the area by clicking on “Search Listings”.
