The real estate market in our area is beginning to experience some improvement when compared to the previous four months of 2009. The average sales price increased by 3% in May compared to April 2009. The comparison of the number of sold homes decreased slightly when compared to May 2008, but the month to month increase in the sales price is a very good indicator going forward and although the days on market had a slight increase from April, the trend appears to be moderating.

As in previous months, the lower priced homes are selling at a quicker pace than the homes in the higher ranges which right now is over $350,000, but some increased activity is occurring. Part of the increase, I’m sure, has been the $8000 federal tax credit that is for first time homebuyers and which now has been modified by HUD to allow buyers to monetize part of this credit and allow the credit to be used to pay for closing costs for the purchase of a home. Combine the credit with still extremely low mortgage interest rates and we can see why there has been sustained activity in what we would consider the first time homebuyer market. And I would anticipate this positive trend to continue in the coming months. Another positive sign is the number of pending but not settled transactions is up about 45% since the end of 2008, giving a good base for future sales to occur in the near future.

Average Sales Price May 2009
West Shore
Municipality
2008
2009
Days on Market
Camp Hill
$241,125
$188,943
87/113
Mechanicsburg
$134,300
$155,100
20/62
New Cumberland
$177,357
$131,940
47/73
East Pennsboro
$210,156
$171,017
39/70
Hampden Township
$305,890
$224,414
110/84
Silver Spring Township
$276,358
$237,897
43/75
Upper Allen Township
$228,094
$236,682
57/106
Lower Allen Township
$186,688
$182,078
46/80
Fairview Township
$206,269
$254,603
71/42
East Shore
Lower Paxton Township
$230,289
$186,171
55/87
Derry Township
$220,424
$259,984
75/77
Swatara Township
$156,941
$157,979
58/83
Paxtang
$127,100
$125,000
20/23
East Hanover Township
$199,440
$245,350
62/57
South Hanover Township
$186,819
$161,900
89/132
West Hanover Township
$189,465
$189,993
103/73

 

Again as last month, the percentage of homes financed by FHA and VA has increased from last year. And as I mentioned in April this trend will continue for a while. For those sellers that have not been involved in this financing, the guidelines are now very similar to conventional financing and as you can see by the percentages, this type of financing has become the norm in today’s environment. And if you have questions about the value of your home or activities in your community, please contact me at your convenience. Just remember all real estate is local and although there has been a correction, we are still in good shape when compared to other communities across the country.