Parkesburg Gazzette rolls out a new column this morning focused exclusively on Parkesburg real estate market. Parkesburg Real Estate Market Watch, written by Parkesburg resident Timothy Alexander, a lifelong resident of Chester County PA, will provide readers a regular snapshot of the local real estate market and give you the information needed to be a well informed home buyer or seller. All information in the column is deemed reliable but not guaranteed, and should be verified independently. Valuation calculations based on public records and MLS sources where licensed.
- Are home prices going up or down?
- What is the average day on market?
- What are prices like in Parkesburg Borough?
- Are there many homes on the market in my particular price range?
- What is the average cost per square foot of homes in Parkesburg?
Average Listing Price vs Original List Price of Sold Units
Over the last 12 month snapsot, we see that the average Listing Price, of homes for sale in Parkesburg, was $171,559. However, the average Original List Price of Sold Units was $152,301. This gives us a good indication of the price point for the average buyer within the borough.
Chester County, as a whole, had an average Listing Price of $390,362, and average Original List Price of Sold Units of $366,544. Parkesburg is 88.7% of average Listing Price, verses 93.8% for Chester County.
Original List Price of Sold Units vs. Average Sold Price
While the average Original List Price of Sold Units was $152,301, the average Sold Price over that last year is $136,947. This means the average sold price is 89.9% of the average Original List, or a reduction of 10.1%.
The average Original List Price of Sold Units, for Chester County during the same period, is $366,544, with the average Sold Price over that last year is $338,201. Chester County’s average sold price is 92.2% of the average Original List, or a reduction of 7.8%.
Pended vs Units Sold
Over the last 12 months, Parkesburg has had 49 pending home sales, but only 38 homes made it to settlement. That means 22% of properties with an agreed sale contract did not actually get sold.
Chester County, which is inclusive of Parkesburg’s numbers, had 5238 pending sales, and 5059 sales completed. Only 3.4% of sale contracts failed to get finalized for Chester County home sales as a whole.
There are many reasons why an agreement may not go to settlement, but Parkesburg’s numbers are extremely high, and shows signs of a significant problem.
Inventory Accumulation for the Last 12 Full Months
Inventory is the number of homes on the market, and there are currently 56 residential homes for sale within the borough. The average number of sales is 3 per month, and month-to-month sales have generally stayed flat.
The number of homes for sale in Chester County is 3031, with an average of 422 sales per month.
Parkesburg’s current number of homes for sale would take 18 months to sell. However, an average of 9 new properties are listed for sale every month.
Chester County, based on monthly sales averages, has only a 7 months inventory of homes for sale. This is caused by many areas of Chester County having moved into a Seller’s Market. This is not the case in the Borough of Parkesburg.
Homes that sell in Parkesburg are on the market for an average of 120 days. Chester County’s average Days On Market is 87.
The average Listing Price in Parkseburg is $171,559, but the average Sold Price is only $136,947; plus, 22% of contracts don’t result in a final sale. We are faced with three questions:
- Why are higher valued homes having difficulty selling within Parkeburg?
- Why are home sellers having to so dramatically come down off their list price?
- What is the most significant, universal problem that could be causing contracts to not close?
I believe all three questions can be answered with one word… taxes. Parkeburg has a significantly higher total property tax burden, caused by both high municipal and school district tax rates.
The total millage rate is currently 50.823. If your home has the county’s Median Assessed Value of $165,760 (converts to an estimated market value of about $280,000) then you will pay $8424 a year in taxes, or $702.03 added to your monthly mortgage budget payment.
These high taxes can dramatically affect a Buyer’s Payment-To-Income ratio, and can disqualify some buyers with purchasing some properties. Buyers can easily travel a few miles into another municipality or school district, and save thousands of dollars every year.
Of the properties being sold, it seems that sale prices are being discounted to account for the additional taxes. Home owners are getting hit twice… once paying for the high taxes, and then again in the value of their homes when they sell.
In January, based on Q4-2012 numbers, my prediction for the Parkesburg Housing Market’s 2013 First Quarter was continued improvement. While January itself was stronger, the trend was not sustainable. Sellers still must be careful when determining list price. If you are in no rush to sell, then wait to list your property so the price you want mirrors market conditions. Parkesburg has yet to benefit from the Seller’s Market being experienced across Chester County.
Timothy Alexander is a REALTOR® affiliated with Long & Foster Real Estate, West Chester. As a lifelong resident of Chester County PA, he is an expert in the local area, and brings a wealth of knowledge and expertise about buying and selling real estate here. Additionally, Timothy possesses 10 years of online sales and marketing knowledge and experience. His expertise and extensive experience using technology, software, and Social Media, in a highly competitive business market, exposes your property to the widest range of qualified buyers. Tim prides himself on genuine and dedicated customer service, and represents clients with enthusiasm, vigor and a professional demeanor, striving to exceed his clients expectations when engaged in selling or buying real estate.
If you have a question about Real Estate you would like answered, please submit it to the editor of Parkesburg Gazzette, or contact Tim through his website homesinchecso.com.
The statistics used for analysis came from TREND MLS Market Statistics from June 2012 to May 8th, 2013. This information is deemed reliable but is not guaranteed, and should be verified independently. Additionally, market predictions are based on the current market snapshot. There are unknowable factors, such as possible future changes in government policies, that could dramatically improve or harm the housing market.