June Pending Home Sales Index© Shows Decrease in Greater Philadelphia Region Real Estate Activity

DEVON, PA – August 7, 2008 – The Greater Philadelphia region* saw a 2.3 percent decrease in June real estate activity moving to an index of 66.81 from the upwardly revised May index of 68.37, according to The Prudential Fox & Roach, REALTORS® HomExpert Pending Home Sales Index©. June’s decrease in the region’s activity is 24.7 percent lower than June 2007, when the index stood at 88.7.



Compared to findings reported by the National Association of Realtors® (NAR) Pending Home Sales Index, real estate activity in the Greater Philadelphia region fell below both the Northeast index and National index. The NAR index showed a 3.4 percent increase in pending sales in the Northeast and a 5.3 percent increase nationally. In May, the NAR index indicated a 2.9 percent decrease in pending sales in the Northeast and a 4.7 percent increase nationwide.



Based on the forward-looking indicator, real estate activity in the five-county Southeastern Pennsylvania area remained steady, decreasing 0.6 percent from an upwardly revised index of 74 in May to 73.6 in June. Bucks County saw the region’s largest increase in real estate activity, rising 5.3 percent from an index of 69.5 in May to 73.2 in June. Following a 16 percent decrease in the May index, the Delaware County index increased 4.1 percent to an index of 70.2. Center City and the Main Line area both saw decreases in pending home sales, decreasing 8.1 percent and 2.3 percent respectively.



Southern New Jersey pending home sales fell 5.6 percent in June, to an index of 57.6 from the revised May index of 61. This is the second consecutive decrease in real estate activity for the five-county area after remaining steady in the February, March and April indices. Mercer County saw the regions largest decrease, falling 19.3 percent from an index of 71.3 in May to 57.5 in June. In May, Mercer County experienced a 12.9 percent increase in real estate activity. Camden and Salem were the only counties in New Jersey to see an increase in pending home sales, rising 3.5 percent and 0.5 percent respectively.



Following a 13.4 percent decrease last month, Delaware real estate activity decreased 4.2 percent in June. The two-county Delaware area moved from a revised index of 58.8 in May to an index of 56.3 in June. Kent County saw the areas largest decrease, falling 10.1 percent, moving from an index of 57.4 in May to 51.6 in June. New Castle faired the best of the two counties, decreasing 2.6 percent.



“The market is continuing to favor first-time home buyers,” said Steve Storti, senior vice president of marketing for Prudential Fox & Roach. “Increased inventory of homes for sale, new provisions provided through the recently passed housing stimulus bill, and the first-time home buyer tax credit provide more home choices and opportunities for home buyers than in previous months.”



While the June pending homes sales index for the Greater Philadelphia region decreased 2.3 percent, it is 24.7 percent below the June 2007 index, moving from an index of 88.7 in 2007 to 66.8 in 2008. The Southeastern Pennsylvania index is 22.7 percent below a year ago, Southern New Jersey is down 25.6 percent and the Delaware area fell 33.2 percent below last year’s June index.



The index, based on contracts signed in June, monitors real estate market activity by tracking pending sales of homes reported to the TREND® Multiple Listing Service, the region’s primary real estate reporting tool for 32,000 real estate professionals. A sale is listed as 'pending' when a contract has been signed but the transaction has not closed. Sales are typically finalized within one or two months of signing. An index of 100 is equal to the average level of contract activity during 2002. The Prudential Fox & Roach, REALTORS HomExpert Pending Home Sales Index is modeled after the national index created by the National Association of Realtors®, which is available at www.realtor.org.



The following is the June 2008 HomExpert Pending Home Sales Index for the Greater Philadelphia region:




June
May
Percent

County
Index
Index
Change

Philadelphia
86.0
86.6
-0.7%

Bucks
73.2
69.5
5.3%

Chester
60.4
65.3
-7.5%

Delaware
70.2
67.4
4.1%

Montgomery
69.1
71.3
-3.1%

PENNSYLVANIA
73.6
74.0
-0.6%

Burlington
57.5
59.3
-3.0%

Camden
58.2
56.3
3.5%

Gloucester
55.2
59.3
-6.9%

Mercer
57.5
71.3
-19.3%

Salem
64.0
63.7
0.5%

NEW JERSEY
57.6
61.0
-5.6%

Kent
51.6
57.4
-10.1%

New Castle
57.6
59.2
-2.6%

DELAWARE
56.3
58.8
-4.2%

12-COUNTY REGION
66.8
68.4
-2.3%

Center City
122.1
132.9
-8.1%

Main Line
95.1
91.3
-2.3%






* Editor's note: The Greater Philadelphia region includes counties in Southeastern Pennsylvania, Southern New Jersey and Delaware, which are: Philadelphia, Bucks, Chester, Delaware, Montgomery, Burlington, Camden, Gloucester, Mercer, Salem, Kent and New Castle.