Reading the front page of last Sunday’s Inquirer regarding the resurging real estate market did you assume that your Nether Providence home was suddenly worth 55% more? This was the increase in the median price of homes sold in the township when comparing the first quarter of 2012 to 2013, as reported in Sunday’s Inquirer.
The percentage increase is indeed true, but if the underlying numbers are analyzed the picture is not quite as bright as portrayed. I contacted Alan J. Heavens of the Inquirer and summarized my analysis:
During the 1st quarter of 2012 there were 6 sales that were recorded at $100,000 or lower with the lowest at $41,500. This group represented 23% of the total quarter’s sales. Traditionally this under $100,000 price range constitutes 2% to3% of the Nether Providence market. On the high side for the 1st quarter of 2012, the highest sale came in at $545,000.
Turning to the 1st quarter of this year, there were no sales under $100,000, but 3 sales that were over $660,000, with the highest at $750,000. Again this was some very unusual activity for a small segment of a market whose core is in the $250,000 to $350,000 price range.
This hyperactivity at the low end in 2012 and the high end in 2013 has led to a skewing of the data. While there are encouraging signs of a recovery, the market needs to exhibit a continued string of performance in key indicators such as selling price to original and last price ratios, and a consistent month over month increase in both average and median selling prices, that so far has been elusive. Buyers are still getting seller concessions on a regular basis – 10 of 19 homes sold in Nether Providence in May 2013 had a seller concession, which indicates to me that buyer are still in control.
Mr. Heavens did respond to my Email with “The decision to use the data in that way was not mine, nor, as is usual, were my objections heeded.”
I appreciate his objectivity.
Wallingford PA Real Estate – Wallingford, PA 19086
