This month’s Real Estate Market Watch has been expanded to include all of the Octorara Area School District. Last month, we provided readers with the Parkesburg Real Estate Market Watch – 2013 Year In Review. This month, we have expanded to provide important highlights from Octorara Area Real Estate’s trends and data for the Trailing Twelve Months.
Parkesburg Gazette exclusively provides readers a regular snapshot of the local real estate market and gives 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.
Similar to the Parkesburg Real Estate market, the Octorara Area can be described as “oversaturated and underperforming.” The Trailing Twelve Months, of the Octorara Area Real Estate Makert, has a high number of Residential Homes listed For Sale, compared to 10 years ago (Feb-04 thru Jan-05), with a low percentage of Homes Sold.
For the Trailing Twelve Months, there was an increase in total units sold compared to the previous 12 month period, with 139 sold versus 110 units. However, this is down from ten years ago (Feb-04 thru Jan-05), when there were 158 units sold during the same period.
Ten years ago, 72.1% of Residential Homes listed in the Octorara Area sold. Today, only 43.5% of homes sold. As with the Parkesburg Market, the big cause for the low percentage is a drastic increase in the number of homes on the market, while Buyer Demand has not increased.
Average Sale Price
During the TTM, the Average Sale Price was $221,294. In the twelve months prior, the average sale price for Octorara Homes sold was $223,186. This year, the average sale price was decreased by only $1,892. This would generally be considered flat year-over-year.
New Listings & Current Contracts
During the TTM, there were 319 homes newly listed for sale in the Octorara Area compared to 317 in the previous period.
The Octorara Area, during the same period 10 years ago, had only 219 units listed. However, 158 of the 219 units sold.
Average Listing Price vs Sale Price
This year, the average Listing Price, of homes for sale in the Octorara Area was $251,335. The average Sale Price was $221,294. The difference represents a decrease of $30,041 or 11.9%.
In previous period, the average Listing Price, of homes for sale in the Octorara Area was $275,678, and the average Sale Price was $223,186. At that time, homes sold with an average reduction of price of only $52,492 or 19.0%.
Days on Market
This year, the average number of days on market was 90, lower than the average in the previous period, which was 111. This means that of residential homes which actually sold, they sold 21 days faster during the twelve month period year-over-year.
During the same period 10 years ago, homes sold within an average of 53 days.
As with the Parkesburg Real Estate Market, there is little good news for the Octorara Area Real Estate Market based on the Trailing Twelve Months data. While we did see improvements to the year-over-year Days on Market and Average Sale Price, the percentage and actual number of homes selling is poor, with Sellers still taking a big hit on their list price in order to sell.
Because of the very large number of Residential Homes on the market, I predict the Octorara area will remain in a Buyers’ Market through the end of 2014. The high Inventory Accumulation is keeping Months of Supply extremely high, which is currently 10 months of supply.
Months of supply is calculated by dividing current inventory by current sales. It indicates how many months would be needed to sell all of the inventory available at the current rate of demand.
Octorara Area Sellers are not only competing with each other for the few Octorara Area Buyers available, there is strong competition from neighboring areas.
Price will be the big factor if a property sells or not. Sellers will need to aggressively price their home to get the attention of Buyers. Moreover, proprieties will need to appear “like new” and “move in ready” in order to sell.
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. 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.