High Value Homes

 

It is not unusual for homes of higher quality, larger square footage and larger acreage to take slightly longer to sell, be limited in turnover and to fall outside of the neighborhood range.
Also, it's important to separate the higher value homes from the general overall median sale prices when determining market trends.
This is just the beginning of the breakdown. There are also other factors to consider when estimating value.
The chart below shows the median sale prices of fee simple, high value (1-5 million) single family homes from 2015 thru 2020 within the PA counties of Bucks, Montgomery, Chester and Delaware.
Keep in mind this price range only reports the homes that have been sold via the multiple listings.
Yes, the median sale prices within the general market in the same time frame area are increasing. However, the market reports the median sale prices for higher value homes to remain stable overall.
An important reminder: the cost of improvements does not equally increase the market value and the estimate of value is not based upon the cost of improvements. The market reaction to the improvements determines the market value and the estimate of value is an objective, unbiased opinion of value that is reflective of the current market.
When a buyer of the higher value home in this market area is looking for a specific amenity, age of home and use of land they are typically willing to look outside of the immediate school district as long as it's still within a reasonable travel distance to Center City Phila and the Phila International Airport.
Additionally, the prospective buyer would potentially pay a higher price to have access to a specific area given the opportunity or a lower price if well informed of the median sale prices of that particular school district.
Here are a few stats to start.
A search of fee simple, single family sales, priced $1,000,000-$5,000,000 from 01/01/2015-12/31/2020 indicates the median sale price for the following school districts to be as follows:
Central Bucks SD -- $1,200,000
Pennridge SD -- $1,225,978
Unionville-ChaddsFord SD -- $1,247,500
Lower Merion SD -- $1,315,000
Palisades SD -- $1,422,125
Downingtown SD -- $1,189,500
Hope this helps you in some way. Have a beautiful day!




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