We’ve had this conversation with both buyers & sellers this week so I thought anyone thinking about making a move would find this chart helpful in understanding what’s happening in our Bucks County Market today.
The simple answer to the question is supply vs demand.
Although interest rates have shot up from an average of 3.1% in 2020 to over 7% today, it has not dampened buyer demand enough to offset the historically low inventory.
So, even though some buyers have been priced out of the market due to affordability, there are still more buyers looking for homes than there are homes available.
Since October of 2018 to today inventory in Council Rock, Pennsbury, Neshaminy, New Hope Solebury, and Central Bucks is down an astounding 70.76%.
A buyers, or sellers market is based on how many months inventory we have.
A buyers market is 6 months + of inventory, and under 6 months is a sellers market. In October of 2018 we had 3.2 months supply and today it has dropped to 1.3 months.
So, it is still a strong sellers market, and until inventory rises buyers will still be competing for a limited product.
Prices are not increasing at the same pace, but are continuing to rise.
It’s still common to be in multiple offer situations where buyers have to consider going over the asking price, waiving appraisal, waiving inspections, giving the seller the settlement date they want, etc.