Market Report: Residential Home Sales Drop 36% in July

Residential sales activity for TREND's MLS Coverage Area plummeted 36 percent in July compared to a year ago, according to statistics generated by MLS Blue. There were 3,917 sales reported in July 2010, compared to 6,143 in July 2009. It represents a nearly 50 percent drop when compared to June 2010 sales.

All 13 counties saw dramatic decreases in sales activity, with the highest percentages in::

·  Delaware County, PA - 48.0%

·  Camden County, NJ - 40.5%

·  New Castle County, DE - 39.3%

·  Burlington County, NJ - 38.8%

·  Montgomery County, PA - 37.4%

Average sale prices increased 6.0% when comparing numbers from July 2010 to July 2009. Overall, prices increased in eight counties.

The highest increases:

·  Burlington County, NJ - 17.8%

·  Delaware County, PA - 10.7%

·  Montgomery County, PA - 10.1%

The highest decreases:

·  Salem County, NJ - 23.0%

·  Camden County, NJ - 8.6%

Seven counties saw higher median prices. Burlington County led the way at 13.5%, while Salem County had the largest decrease at 29.7%.

Pending sales decreased in all 13 counties in July compared to July 2009, dropping overall numbers by 27.8%. Sales were 4,172 in July and 5,773 in July 2009.

Individually, the highest decreases were:

·  Salem County, NJ - 39.3%

·  Gloucester County, NJ - 35.7%

·  Burlington County, NJ - 33.6%

Sales increased for lots, land and farms in July 2010, compared to 2009. The number of sales for commercial and multi-family listings decreased.

Inventory at the end of July stood at 53,824. That's up from 50,803 a year ago, suggesting supply and demand in Philadelphia is still out of balance.

In addition to monthly marketing reports, TREND also offers other statistical reports that you might find helpful:

·  Economic and Market Watch Report

·  Market History Reports by county

·  Year-to-Date Market Snapshot

Average Price

The chart presents average prices computed using a twelve-month moving average price of homes that sold -- i.e., settled.  To illustrate the moving average calculation, the twelve-month average for June includes July of prior year through June of current year, July includes August of prior year through July of current year, etc.  The averaging process smoothes the fluctuation from one period to another.

It is important to note that, strictly speaking, this average price change does not necessarily constitute property appreciation.  It is possible that more expensive homes are selling in one period compared to another.  This chart simply shows the "average prices" of homes that sold.  However, when dealing with a large population, this could be generally construed as reflective of appreciation assuming no significant change in the mix of homes being sold.

Be sure to review the article included here on Local Market Condition Report to ensure that wrong decision is not made based on the information presented.  The charts presented here are strictly for informational purposes.  Keep in mind that homes are usually bought and sold over a long period of time; and over a long period of time real estate almost always appreciates.  For this reason, it does not make sense to try to time the market.  Unfortunately, the mass media sensationalizes on the bad news because that is what sells -- not the good news.  Therefore, understanding this normal market behavior will, hopefully, calm down those who are affected by the media.