(Warminster, PA) – The Bucks County Association of REALTORS® (BCAR) has observed notable changes in the local real estate market for May 2024, marked by rising prices and shifting market dynamics.
The median sold price for residential properties in May reached $485,000, representing a 4.6% increase compared to April 2024 and a significant 14.1% rise from May 2023. While this reflects a robust market, it also highlights the growing challenge of affordability for many buyers in Bucks County.
The average days on market for units sold in May was 18 days, which is 18% below the five-year May average of 22 days. This indicates that homes are selling faster than in previous years, adding to the competitive nature of the market.
Market activity has shown some positive signs, with a 3.9% month-over-month increase in new contract activity, totaling 617 new pendings. There was also a 6.6% month-over-month increase in all pendings (new contracts plus contracts carried over from April) to 923, and a 15.4% increase in supply to 719 active units.
Despite these increases, the contract ratio of 1.28 pendings per active listing is down from 1.39 in April and a decrease from 1.73 in May 2023. The contract ratio is 27% lower than the five-year May average of 1.76, suggesting a shift towards a more balanced market. A higher contract ratio signifies increased contract activity compared to supply, favoring sellers. Conversely, a lower contract ratio indicates a relative decrease in contract activity compared to supply, favoring buyers.
Stephanie Garomon, President of the Bucks County Association of REALTORS®, expressed concerns over the latest market trends: "While the increase in home prices reflects strong market demand, it also poses challenges for potential buyers in Bucks County. Affordability remains a significant issue, and we must work together to find solutions that balance market growth with accessibility for all residents. The faster sales and increased contract activity indicate a dynamic market, but it's crucial to address these rising costs to ensure our community remains inclusive and affordable."
For more information about the Bucks County real estate market or to contact a local REALTOR®, please visit www.bucksrealtor.com