Demand in Bucks County real estate market remains 'robust.' How to score your dream home

Peg Quann, Bucks County Courier Times
·4 min read

Homebuyers in Bucks County have their work cut out for them if they want to be the winning bidder on one of the few existing homes for sale this summer.

The number of homes available stood at only 557 active listings compared to 769 last July and a five-year average of 964 homes.

The median price of homes in the county, however, took a slight dip in July from June but still jumped 2.9% from July 2022, the Bucks County Association of Realtors reported Friday. The median sold price was $478,450 last month, down 1.4% from June but up 2.9% from last July.

This chart shows that the median sold price of homes in Bucks County dropped by 1.4% in July from June, but was still 2.9 higher than in July 2022.
This chart shows that the median sold price of homes in Bucks County dropped by 1.4% in July from June, but was still 2.9 higher than in July 2022.

And homes are now selling in an average of 14 days compared to the five-year average fo 22 days — another indicator that it's still a sellers' market with buyers lining up to put in their offers quickly.

Association President Douglas Krautheim said all the data shows that "it's evident demand (for housing) remains robust. The key for both buyers and sellers is to remain informed and agile, ensuring they make the most of the current conditions."

Many homeowners in Bucks County are staying put

At Long & Foster Real Estate in Newtown, Robbie Johnson, managing broker, noted that with mortgage rates now hovering between 6 and 7%, potential home sellers would rather stay put and renovate their current home because they most likely purchased or refinanced when interest rates were under 3%.

More: In hot Bucks County real estate market is renting the answer? A look at the numbers

And while housing construction has picked up since the pandemic, the price for new homes is now over $800,000 for a single family and more than $400,000 for a townhome in Bucks County. Existing townhomes in the Newtown area are selling for more than $450,000, Johnson said.

Homes in the Levittown area of Lower Bucks are going for $325,000 or more, said Janine Allan, broker-owner of Anthony Messina Real Estate in Bristol.

In Eastern Montgomery County, the situation is the same, said Chris Beadling, broker at Quinn & Wilson Realtors in Jenkintown and past president of the Pennsylvania Association of Realtors. He advised buyers to "stay diligent," as homes do come on the market even in times of short supply because there are still sellers "who are going to have to make a move...The notion that mortgage rates are keeping buyers away is not true in Bucks and Montgomery counties," he said.

He said interest rates may drop in 2024 if the high rates now are doing their job to keep inflation in check, but he doesn't advise a buyer who finds a home they want and can afford to wait. And he agreed that it's a "challenging" time for those who want a new home because the construction costs for builders have become so high.

Pennsylvania Finance Agency offers free counseling

So what should someone looking to make a home purchase, particularly a first-time buyer do?

Allan said that the higher a person's credit score, the more likely they will be able to get pre-approved for a mortgage with a good interest rate.

"The better their credit score, the better the interest rates will be," she said. So it pays for a potential homebuyer to think ahead and get their credit in good shape and then get pre-approved for a mortgage, she said.

For first-time buyers and others on limited income, the Pennsylvania Housing Finance Agency has programs to help homebuyers with loans and closing cost assistance, as well as free financial counseling. In 2022, the agency assisted 5,460 families become homeowners and 68% of the loans made by the agency were given to Millennials, those born from the early 1980s to the mid 1990s.

PHFA spokesman Scott Elliott said, "Income limits are higher than most people realize. They should not assume they won’t qualify." And the assistance can be use with conventional, VA, FHA and other mortgages. Loans to repair homes or for those with disabilities are also available.

If homebuyers have questions, they can contact the PHFA Customer Solutions Center at 1.855.U.Are.Home (827.3466). Operators are available weekdays from 8 a.m. to 5 p.m.  They can also email AskPHFA@PHFA.org   

This article originally appeared on Bucks County Courier Times: Bucks County real estate still a seller's market amid low housing stock