In this video, Michael Diggin of RE/MAX Town & Country in West Chester provides a brief update on the real estate market in Chester County.

From January 2019 to January 2020, the number of settlements in Chester County are up 6.8 percent, and the average home price rose 7.4 percent.

During that period, West Chester had a 35.6 percent increase in settlements, while Kennett Square experienced a 22.3 percent increase in average home price.

A couple of factors are playing a key role in driving the increase in home prices.

“The performance of our schools and interest rates,” said Diggin. “Strong school performance plays a key role in attracting new buyers. And interest rates continue to hover around four percent, which gives more buying power to all consumers, especially people that are entering the market for the first time, as well as ones who are trying to move up to a larger or more expensive home.”

Perhaps the most significant factor, however, is the lack of inventory, which is at historic lows.

“Nationally, baby boomers account for 55 percent of homeowners, and they’re actually aging in place,” said Diggin. “This is reflected in how long people stay in their homes. Economists are predicting that 2020 will be a challenging year for buyers, not because of what they can afford, but rather what they can find.”

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