Lower Merion Market Report

Could the hot 2021 market last?

Isn’t the market softening with high interest rates? In 2022, we saw Lower Merion’s average sale price increase another 5% and homes sell even more quickly than last year.

In 2022, the most desirable single family homes went for 10-25% over ask with multiple bids. The hottest bidding wars had more than 25 buyers!

But transaction volume fell in 2022 as interest rates climbed; 33% fewer deals closed in the fourth quarter of 2022 vs 2021. Fewer homes were listed in this time of economic uncertainty with stock market volatility and Tech layoff announcements.

Around the country, the real estate market is returning to normal. Buyers bid below ask and include inspection and mortgage contingencies while sellers are happy to get one strong offer. But a nationally ranked school district like Lower Merion has not softened due to low inventory. There has been almost a ‘stalemate’ in the last few months with Sellers unsure whether to list and buyers waiting for price adjustments due to higher interest rates.

My clients would love to buy in Lower Merion but do not want to invest in major renovations. New construction or high quality renovations in walkable locations are commanding the highest prices per square foot. Ardmore is a hot area for real estate investment as long term rental properties receive face lifts or are returned to single family homes.

Luxury Market

Luxury transactions over $1.2 million declined 11% this year from a 2021 peak, due to a lack of inventory. Buyers bid substantially over ask for homes on large, beautiful flat lots in expensive neighborhoods. Several of the hottest bidding wars involved homes on cul de sacs that were also walking distance to schools. Which luxury homes sold way below ask? They were either very large historic homes, requiring substantial work, or homes with side or backyards on a busy road.