This document summarizes market facts from a sales meeting for the Chambersburg office. It discusses absorption analysis using months of inventory to determine if the housing market favors buyers or sellers. It also examines homebuyers' perceptions compared to facts, such as the credit scores and down payments actually needed to purchase a home as well as the prevalence of foreclosures. The document concludes by showing how waiting for housing prices to drop can end up costing potential homebuyers thousands of dollars.

1. MARKET FACTS
Sales Meeting – August 4, 2015
1
Chambersburg

2. Market Facts
2
Chambersburg Office

3. Absorption Analysis
Chambersburg Office
# Listings ÷ # Sales = Months of Inventory
(NOTE: Use #’s in a given price range for a specific period)
3
It’s not that complicated

4. < 5 months inventory – Prices increasing (Seller’s Market)
5-7 months inventory – Prices stable
> 7 months inventory – Prices decreasing (Buyer’s Market)
Absorption Analysis
Chambersburg Office
4
Franklin County, PA
June 2015
MonthsofInventory

5. Absorption Analysis
Chambersburg Office
“Mr. & Mrs. Seller, what this means is that if no other
properties come on the market in your price range, it
would take _____ months to clear out the existing
inventory.”
5

6. Pricing Your Property
Chambersburg Office
6
2005-2008 Danger Zone

7. Homebuyers’ Perceptions
Chambersburg Office
7
Federal Reserve

8. Homebuyers’ Perceptions
Chambersburg Office
8
Federal Reserve

9. Homebuyers’ Perceptions
Chambersburg Office
 PERCEPTION: 45% think a good credit score of over
780 is required to buy a home
 FACT:
9
Ellie Mae, June 2015

10. Homebuyers’ Perceptions
Chambersburg Office
 PERCEPTION: 36% think a down payment of over
20% is always required
 FACT:
10
Realty Trac

11. Homebuyers’ Perceptions
Chambersburg Office
 PERCEPTION: Buyers think Foreclosures and Short
Sales are prevalent and can get a great ‘Deal’
 FACT:
11
National Association of REALTORS®, June 2015

12. Homebuyers’ Perceptions
Chambersburg Office
12
Loan: $149,900
Rate: 3.7%
Term: 30 years
Pymt: $689.96/mo.
Loan: $149,900
Rate: 4.05%
Term: 30 years
Pymt: $719.97/mo.
$30.01/mo.
$10,803.60
over life of loan
Waiting for the ‘right
time’ to buy cost
Buyers $10,000
during the last four
months

13. Homebuyers’ Perceptions
Chambersburg Office
13
Loan: $149,900
Rate: 3.7%
Term: 30 years
Pymt: $689.96/mo.
Loan: $143,650
Rate: 4.05%
Term: 30 years
Pymt: $689.96/mo.
$6,250
decrease in
purchasing power
Waiting for the ‘right
time’ to buy cost
Buyers over $6,000
during the last four
months