ResalesMontgomery County, Pennsylvania Home Prices Soften While Interest Rates Spur Sales
What goes up must also come down, says the law of physics, and that is also true of real estate, except that if home sale prices soften, they don"t tend to soften much in a low interest rate environment.
"In the month of February," explains Realtor Joeann Scaduto, "there were 1152 residential units listed in Montgomery County, Pennsylvania and 570 sold properties. The average sold price in February was $249,177 down from $269,461 in January. The average listed price in February was $332,530, down from $344,261 in January."
According to NAR chief economist David Lereah, "In an environment of relatively low mortgage rates, healthy economic expansion, favorable demographic trends (i.e., strong immigration growth and a still-strong baby-boomer market), and a continued consumer preference towards real estate purchases due to higher sensitivities of a terrorist world, the demand for homes are expected to remain strong throughout the new year."
He continues, "Home sales are likely to slow six to seven percent in 2004," yet he says, "Housing will continue to provide a solid foundation for the economy for the foreseeable future.
"We think this marks the beginning of a soft landing for sky-high home sales," Lereah suggests. "With no inflation in sight, we don"t expect the Federal Reserve to move on interest rates until the third quarter of 2004."
Say Realtors Pat and John Kraus, "The current supply of available homes will affect the sale of homes. Market conditions, which include the number of buyers, the number of homes available and economic conditions, directly affect home sales and purchase prices. In general, if there are fewer homes than buyers, the market is good for sellers because buyers are anxious to purchase. If there are fewer buyers than homes, the market is good for buyers because sellers are anxious to sell."
They advise, "So is this a good time to consider selling? Absolutely!"
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