An emerging trend for some time now has been the difference between available inventory and demand in the premium and luxury markets and that in the starter and trade-up markets and what those differences are doing to prices!
Inventory continues to rise in the luxury and premium home markets which is causing prices to cool. High end homes in Schuylkill & Berks Counties are just sitting on the market, not moving quickly as the lower priced and mid-priced homes are still selling at a reasonable pace. Anything over $250,000 is slower to sell and north of $400,000 is at a standstill.
Demand continues to rise with lower-than-normal inventory levels in the starter and trade-up home markets, causing prices to rise on a year-over-year basis for 80 consecutive months.
There are 32 properties in Schuylkill listed over the price of $300,000 and of those only 5 are pending sale. See here: Schuylkill County Luxury Homes
In Berks, where the luxury level is a bit higher than Schuylkill, there are 90 homes for sale over the price of $500,000 – and only 6 are pending sale. That is amazing to me. Berks County Luxury Homes.
That means if you have a “high end home” for sale in Pennsylvania, you’ve got to price it right – and even underprice it a bit – to get it sold right now. The premium and luxury market is slow and about to get slower. I don’t see a better forecast for 2019, as the markets are edgy right now and many of our professionals, business people and high end buyers who can afford a luxury home are nervous. They are not sinking money into a new home right now. They are holding off and waiting to see what happens with their jobs and businesses in the next year.
That is actually good, if you are NOT nervous and want to move up into a higher end home. Perhaps now is the time to make an offer, as competition is less, the sellers are seeing fewer showings, and you may be able to get a good deal – if you can stomach going against the grain.