Forget an upturn, stabilization is the word of the day. We want the market to find an even keel for awhile, which is the natural progression of a market cycle after a downturn. Once things stabilize, the stage will be set as buyers regain confidence that their real estate investments aren't going to tank and home buying becomes fashionable again. Once we achieve stabilization, normal appreciation can resume.

Market Data Indicates Stability is Imminent

Here are some positive pieces of market data reported by the Pocono Mountains Association of REALTORS and compiled by Dominic Sacci, Senior Vice President/General Manager of Better Homes and Gardens Real Estate Wilkins & Associates:

• Active Listings (Market Saturation): There were 10% fewer homes on the market in March 2009 than in March 2008. Lower inventory is a good thing!
• Pending Listings (The Crystal Ball, aka predictor of future actual closings): The number of pending sales reported in March 2008 was down 26% from March 2007. The number of pending sales THIS March are only down 5% from last March. Interestingly, this 5% equates to only 20 sales! Once the percent change is 0, we are stable.

We Still Have Challenges Ahead, Of Course

The average sale price of homes that actually went to closing this March was down 13% from the same time period last year. The reason? Foreclosures. Foreclosure sales have accounted for 35% of the total number of sales in Monroe County so far this year. Since the average sales price of a foreclosure has been 23% less than a non-foreclosure sale, this has a big impact on home values. Home sellers are still competing with the bargain-priced foreclosure offerings out there. 

For more information about real estate issues and market conditions in the Pocono Mountains of Northeastern Pennsylvania, please contact me via email [email protected] or by phone 570.421.8950 ext 394

Sunshine & Blue Skies (Kinda)

Less than 1% of households in Pennsylvania were affected by bankruptcy and/or foreclosure in 2008. According to statistics compiled on MSN Money, the Keystone State is faring better than 35 other states in the country.

PA has been affected by the economy, of course, but we've not been big players in the bubble and subsequent burst seen in some other states. Our real estate growth has been of the slow and steady variety. This is not to say that we aren't experiencing a challenging real estate market, because we are. But our prospects are much brighter here than in many other places.

What Does This Mean For The Pokies?

Here in the Poconos, we are in the unique position of relying on factors in other states to drive our market. New Jersey (#14 on the list) and New York (#33 on the list) feed us with home buyers looking for properties which offer a good commuting location for primary residences, as well as vacation home purchasers looking for weekend getaways. So we will be keeping a close eye on employment numbers going forward. However, even as we are affected by outside influences a little more than in other areas of the state, we remain, along with the rest of Pennsylvania, a much less volatile market than the (imaginary) 'national real estate market' depicted on the news.

Real estate is local <period>

What do you think?

There are currently 2,591 homes (single-family,residential properties) listed for sale, which is a 19 months' supply based on this year's absorption rate. 261 homes are under contract, awaiting settlement.

This information is provided as an overview of market conditions for those curious about the state of the Monroe County, PA real estate market. The nature of real estate markets is ever-changing and reliant on many factors. For this reason I ask that if you are looking for specific market data related to your Pocono home, you contact me to discuss it or to make arrangements for a complimentary market analysis. Every area, neighborhood, street and home are different and value can only be determined on a case by case basis.

For example, this home beat the statistics by selling in 58 days for 96% of the owners' asking price, which is higher than the above stated average sale price. There is some good news :)