West Chester Area School District Market Report

Have you ever listened to the news and wondered “what do these numbers mean for me?” In the vast landscape of real estate, national averages often overshadow local nuances. From my perspective, these generalities do little to help paint a picture of the real estate market in our area, let alone our backyards.

Over the past few years, the market has changed to a point that some conventional wisdom no longer holds. The transition to a more digitized experience was fast-forwarded by the pandemic, population distributions have likewise shifted, and inflation has thrown a curveball into everyone’s spending. All these changes highlight the importance of hyper-local and timely data when making real estate decisions.

That’s why I’ve started this market report: to give you a monthly snapshot of various school districts in our area. While this still casts a wider net than I’d use to determine your property’s equity position, looking at our Chester County area by school district brings things into focus. I’m pulling all the data directly from our local MLS (Bright Multiple Listing Service) and will be examining the same categories each month.

Since this will be a recurring series, I’ve prepared a glossary of terms on my website for easy reference. If you’d like to know more about any part of the process, or are interested in seeing how your neighborhood stacks up, please feel free to reach out and chat!

Remember, just as every festival has its own charm and every home its own story, every month presents a unique tale in the world of real estate. Let's dive in!

Statistics*

The chart above presents a month-over-month comparison of the real estate market in the West Chester Area School District. It provides data for both June and July 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 June and July 2023.

Displayed above is a year-over-year comparison for the same district. This chart addresses the same statistics but examines data from July 2022 and July 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 June 2023 was about $650k. For July 2023, we can see that the average sale price increased about 8.48% to about $710k. In the West Chester Area School District, home prices continue to increase faster than the rate of inflation.

When we look at the average sale price year-over-year for July, we see a similar picture. In July 2022, the average sale price was about $640k, showing an increase of about 11.27% 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 17 days before selling during the month of June 2023. Properties that sold in July 2023, by comparison, were on the market for an average of 22 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 quite some time 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 decreased by about 38% from June to July of this year, that tells us competition is picking up.

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 38% decrease in today’s MSI signals increased urgency 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. Tides keep flowing in and out, yet the trend remains that property values are increasing in our area and buyers are still swimming upstream.

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!

*All data provided by Bright MLS. Information deemed reliable but not guaranteed.