Berkshire Hathaway CEO predicts good market into 2018

Berkshire Hathaway HomeServices (BHHS) Fox & Roach, Realtors Chairman and CEO Larry Flick expects the closeout of the 2017 market to be good, with continued growth in 2018.

“Sales were up for the first six months of 2017 by 13 percent,” Flick explained, “and we are expecting a good market for the rest of the year and into 2018.”

With several positive conditions in place, including a strong economy, confidence in personal finance and a desire to buy a new home, it is a “just right” environment to buy a home, he said. A few factors continue to have an influence on the current real estate market, like a continued lack of inventory.

“We are experiencing a

huge shortage of homes for sale,” Flick added, “the lowest number since 2005.”

In this climate, houses on the market are going quickly. Flick’s advice is to be ready, get preapproved and be prepared when you find a house that fits your criteria.

“Move fast and make your offer,” he added. There are more people ready to buy a home than those selling a home.

“Compared to 2012, sales are up 58 percent, listings are down 30 percent and average days on market are down 48 percent,” Flick continued.

Here is an overview of sale prices in key areas

across the tri-state area:

• Philadelphia and Delaware counties’ prices are up by 14.1 percent.

• Bucks, Chester and Montgomery counties’ prices are up 9.8 percent.

• In the New Jersey suburbs, the number of foreclosure properties on the market has kept prices of most non-foreclosure properties from rising. As these properties hit the market, the excess will run its course and prices will begin to rise.

• Trenton-Ewing area prices have increased 1.9 percent over this time last year.

• In New Castle, Cecil and Salem counties, home prices were up 3.9 percent from this time last year.

• In the Lehigh Valley-Allentown-BethlehemEaston area, home prices were up 3.5 percent.

• Home prices at the shore are beginning to rise. Avalon’s average sale price is up 16 percent from this time last year, Ocean City average prices are up 14 percent, Stone Harbor had a 35 percent increase and Longport showed an increase of 25 percent.

Flick explains that traditional annual appreciation for our market is 3 to 4 percent, and home prices have remained relatively stable. But things are starting to change. For the past four years, average sale prices hovered in the mid$260,000 range. So far this year, it is $280,000.

“This increase is due to both rising prices and a larger number of higher priced homes selling,” Flick explained.

Average sales prices are on the rise, and days on the market are seeing a decrease.

“Even though I believe the economy will continue its steady, slow growth through this year and next, prices and interest rates will rise,” he added.

If this is the right time for consumers to buy or sell a home, Flick said, it doesn’t pay to wait.