Town By Town: Take a step back in time in North Wales

One in a continuing series spotlighting real estate markets in the region's communities.

Just to be clear: This week's focus is North Wales, the borough, not North Wales, the zip code (19454), of which the municipality is a minuscule part.

But the rest of the postal zone plays at least two parts in this production.

One is to show that although the borough has a small business district, its residents can, in a five-minute drive, reach the shopping centers, malls, and movie theaters just outside their three-quarters of a square mile.

The other illustrates the difference between those looking for houses in the borough and those interested in living in the rest of the zip code, primarily in surrounding Upper Gwynedd Township.

There's not that much for sale in the borough - only 14 active listings and not enough to meet the demand of primarily younger buyers looking for affordable housing in the North Penn School District, says Lena M. Gellenberg of Re/Max Services in Blue Bell.

So far this year, just 44 houses have gone to settlement in the borough, says Gary Segal of Keller Williams Realty in Blue Bell. Much bigger Upper Gwynedd had about four times that number, recent data show.

Segal describes North Wales as a "seller's market, similar to Conshohocken."

Though houses here have to be in "pristine condition," Gellenberg says, prospective buyers are "not looking for granite [countertops] and understand that the houses are older and may need work."

"As long as what they have to deal with isn't structural, they're willing to do some painting or replace a bathroom," she says.

In the "suburbs of North Wales," she notes, buyers "are much pickier, because they expect newer houses to have everything on their list and to be in perfect shape."

Current listings in the borough are priced between $170,000 and $350,000, Segal says.

In the last 12 months, says Diane Williams of Weichert Realtors in Blue Bell, sale prices here ranged from $120,000 to $388,000, with days on market averaging 56 and an average sale price of $225,285.

With an average of three houses selling every month, the price-absorption rate is four months, Williams says, confirming Segal's view that North Wales is a seller's market.

Because the borough has pretty much been built out for years, there is little new construction, and most of that is on smaller lots, Williams says.

Of the two most recent examples, one is sold and one is under agreement and heading for settlement, with prices between $370,000 and $380,000, she says.

The market's "sweet spot" - the price most in demand by buyers - is $200,000 to $300,000, Gellenberg says.

"Typically, younger buyers like the quaintness they find in places like North Wales, although a lot of my clients are surprised that they are not going to get a totally renovated house," she says.

Many have "high expectations, believing that they are going to get a deal, but not understanding that in towns with high demand and little for sale, the seller is in the driver's seat," Gellenberg adds.

Most of what is selling here are twins, Williams says, most of them dating from before 1950.

Many substantial singles were built along Main Street between Montgomery and Prospect Streets in the late 19th and early 20th centuries, after the railroad turned a 17th-century farm community into something of a resort.

North Wales "is a quaint town that was built up around a railroad station," Segal says.

North Wales' stop on SEPTA's Doylestown/Lansdale line is a big draw for buyers looking to commute to Center City, the Bucks County seat, and every place in between. Being able to walk to the train has its allure, too.

Cheryl Miller of Long & Foster Real Estate in Blue Bell says completion of the Route 202 Bypass has been a shot in the arm to the market because it has cut the commute to Philadelphia and Doylestown.

Pharmaceutical giant Merck has been "fueling the real estate boom in this part of Montgomery County for years," Segal says, and recent layoff announcements "have not appeared to have had much of an effect on the market."

"North Wales is a step back in time, with vintage homes, tree-lined streets, and children able to walk to the elementary school," Williams says. It has "a tremendous sense of community and is very family-oriented, very affordable and very small."

Taxes are relatively low, and there are several parks, including three-acre Weingartner Park at Second and Summit Streets, which hosts the annual Community Day/Oktoberfest. The borough shares the operation of Nor-Gwyn Pool on Parkside Place with Upper Gwynedd and the Lions Club.

Downtown North Wales, at Main and Walnut Streets, may not be at Ambler's or Conshohocken's level yet, but it has an active business association, a coffee shop, a bakery, offices, and "cute little places," Gellenberg says.

And it has the Tex-Mex Connection, a restaurant every real estate agent mentions.

"It is one of my favorites," says Gellenberg.

"It has this very special hot salsa," says Miller, "and a two-margarita limit, because they are really strong."

Population: 3,244 (2010).

Median income: $55,489 (2012).

Area: 0.72 square miles.

Settlements in the last three months: 10.

Homes for sale: 14.

Days on market: 56.

Median price: $267,000.

Housing stock: Older singles and twins; little buildable land except for infill spaces.

School district: North Penn.

SOURCES: U.S. Census Bureau; City-Data.com; Diane Williams, Weichert Realty; Berkshire Hathaway Home Services Fox & Roach HomExpert Market ReportEndText

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