Philadelphia Region ranks 5th in the hottest real estate markets
That’s according to Zillow anyway, as reported in the “Philadelphia Inquirer”. And the region jumped up 6 spots from last year. Why, you ask?
There are several factors that will have sellers doing a high five and buyers wringing their hands in despair. One is because while inventory levels are rising, they were up 5.5% at the end of last year – they are lagging significantly behind the national average of 16.8%. Another is because the area doesn’t build new homes at the same rate other markets do, and the new construction that is out there is considerably beyond the means of the average buyer.
Add in the stubborn rate of inflation and resulting higher interest rates, which impacts buying power, and a log jam ensues. That leaves demand far outpacing supply and a region starved for inventory.
And while the pendulum will eventually swing, as it always does, don’t expect it to happen quickly, or anytime soon. There will most likely be an easing, not a nosedive, so no matter what side of the fence you’re on, you’re going to have to deal with it.
How? Most importantly, work with an agent that knows what they’re doing. This market is a tricky one and not for amateurs who can’t demonstrate their experience or don’t take this business seriously enough to do it full-time.
If you’re selling, don’t make the mistake of thinking that anything goes when it comes to price. Buyers are already hyperventilating over prices; get greedy with yours and they won’t even look at you. A listing gets “stale” faster than the green bundt cake your mother-in-law insisted on bringing to your Super Bowl party.
If you’re a buyer in this market, take your Xanex, suck it up and do what you must to get in the game, because waiting isn’t the answer. Rates WILL come down so you can refinance and breathe a bit easier; in your new home.
The agent you choose to work with matters. Choose wisely! I’d be honored to be your guide. Reach out anytime to Lynne@LynneKelleher.com or call 215-813-6655.