Downingtown Area School District Market Report

Welcome to another installment of my monthly real estate market report! This month, we’re looking at the Downingtown Area School District during the months of August and September. It seems like we’re approaching a tipping point, and this month’s data suggests the market is about to heat up despite the colder weather.

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Statistics

The chart above presents a month-over-month comparison of the real estate market in the Downingtown Area School District. It provides data for both August and September 2023, specifically the average sale price, dollar volume sold, number of units sold and listed, the average number of days a property was on the market before going under agreement, and how many months it will take to completely sell current inventory at the current sales pace. The bottom row indicates the percentage change between August and September 2023.

Displayed above is a year-over-year comparison for the same district. This chart addresses the same statistics but examines data from September 2022 and September 2023. This comparison allows us to see how the market shifts without worrying about expected seasonal factors.

What can the numbers tell me?

What are properties in my area selling for?

Looking at the first chart, we can see that the average sale price for all properties that closed during the month of August 2023 was about $589k. For September 2023, we can see that the average sale price decreased by 0.80% to about $585k. In the Downingtown Area School District, summer high prices are staying steady through the slow back-to-school month.

When we look at the average sale price year-over-year for September, we see a different picture. In September 2022, the average sale price was about $545k, showing an increase of about 7.17% during the same month one year to the next. Looking at both month-over-month and year-over-year sales data helps paint a clearer picture of the market.

Regular seasonal changes are only one of numerous factors influencing pricing. Examining both month-over-month and year-over-year sales data provides a more comprehensive view of the market.

How long are properties in my area usually on the market?

The data also paints a picture of how quickly homes are selling. That’s where the Days On Market (DOM) and Monthly Supply of Inventory (MSI) come into play. For example, the month-over-month table shows us that properties were on the market for an average of 18 days before selling during the month of August 2023. Properties that sold in September 2023, by comparison, were on the market for an average of 9 days before they sold.

The MSI primarily indicates if we’re in a buyers’ vs sellers’ market. When the MSI is above 6 months, that’s considered a buyers’ market. When the MSI is lower than 6 months, that’s considered a sellers’ market. We haven’t been close to an MSI of 6 months in several years and buyer competition remains fierce. Now when we look at the MSI it’s about comparing degrees of urgency.

MSI comparisons help prepare buyers for how competitive and fast-paced the market is: the lower the number, the more important it is to be ready to act. Furthermore, looking at how the MSI is trending month-over-month tells us if buyer competition is heating up or cooling down. When we see the MSI has increased by about 14.29% from August to September of this year, that tells us market competition is barely impacted by the increase in listings.

These numbers, while a useful guide, still represent the average in our area. That includes the ideal properties that sell in 1 day and those properties that need some work and are on the market for months. Comparing the MSI to the 6-month tipping point lets us know that buyers continue to face fierce competition. Comparing the month-over-month MSIs shows us how microtrends are changing. Even so, a 14.29% increase in today’s MSI signals little relief for buyers.

Conclusion

With the market constantly changing and most outlets focusing on large areas, hopefully this local snapshot gives you a better picture of the real estate market near you. Property values in our area continue to increase faster than inflation, and buyers continue to need to be ready to act to attain their place in the world.

As a professional agent, I use this data, plus so much more, to help you achieve your real estate dreams. Like the foliage around us, change is constant, yet the core remains that property values are increasing in our area and buyers continue to face stiff competition.

There does seem to be a shift on the horizon. Though it isn’t fully reflected in the monthly reports yet, activity this October is much higher than seasonal expectations. The charts above show that more houses are entering the market, yet total sales volume is down. Many of those properties have already sold, or are currently under contract, and I’ll be keeping an eye on this month’s numbers.

Thank you so much for reading to the end! I hope this has been informative and interesting. If you know anyone who might be interested in this, please share my article! As always, I aim to provide content relevant to you. If you want to dive deeper into my market report or better understand your property's position, let's chat!