Hatfield, PA · Member since 2018 · 12 posts · 3 votes
I think this is the right sub group to talk about this.
My wife and I are researching the Montgomeryville, PA market and noticing quite a few houses are dropping in price. They're still decent prices but I'm wondering if this is a sign of a downward market. Are there investors in this market noticing anything similar or am I way off? Should we hold off until the market stabilizes more? We are looking at buy and hold opportunities in the 3/2 range about 1500 sqft and built after 1950s.
In part it depends on what you want to do. The answer might be different if you want to flip vs buy and hold. If rents and demand for rentals remain high droppping prices is good for you if you are a landlord.
Two months including august (vacation month) is not enough for a clear trend. Another factor is the days on market average and the number of sales.
@Tim Eichlin the best thing to do is more research. After that its either jump or not. Is there job growth, wage growth, how much of the economics rely on foriegn trade?
@Account Closed if you are looking at the recent two months its typical for this time of year to be slow. July and August. I am just starting to see sales pick up. If you look at the trend of real estate in the past we are due for an adjustment so the good deals may be right around the bend but nobody can ever say for sure when the adjustment will take place.
In part it depends on what you want to do. The answer might be different if you want to flip vs buy and hold. If rents and demand for rentals remain high droppping prices is good for you if you are a landlord.
Two months including august (vacation month) is not enough for a clear trend. Another factor is the days on market average and the number of sales.
@Ned Carey we are primarily focused on buy and hold properties. I don't know if rent demand is high though. How would I get an idea if they are in demand in my area? Rentometer or something like it?
@Account Closed I have been involved in over 1300 transactions in my 25 years here in Pittsburgh. Thats the trend we see every year between around mid June till end of August. Holidays, weddings, vacations, weekends in the warm weather etc... all affect the market here. I am not sure its the same all across the country but here for sure its a trend. Nationally I am seeing some prices drop on the west coast and a lot of times the market adjustment has started there. Its been over 10 years sine the last adjustment and its about time so I am getting prepared and making adjustments to how much and what I buy and what I sell now.
Need to analyze stats with help of local realtors see if this is a seasonal or cyclic event.
Here is Silicon Valley outside Google or Facebook headquarters where just about every home has 20-40 offers recently no home is sold above asking price. There has been no layoff ever from these big employers. The unemployment rate remains to be < 1.5% through out the area. Very few home owners believe the price will sustain at this stellar level and are cashing out their equity.
Small rural America towns the few data points can be distorting. You need to look at the long term prospect. You also need to size what happen in 2019 when mortgage interest rate goes to 5.25% to affordability of future buyers.
I don't know if rent demand is high though. How would I get an idea if they are in demand in my area? Rentometer or something like it?
you can have an agent check the multiple list. Sometimes rentals are listed with agents. However the best way is networking with other landlords and see what rents they are getting and how quickly they can fill units.