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What’s Happening in Philadelphia Real Estate

Recently, experts have observed what appears to be a continuous rebounding trend in the state of suburban Philadelphia real estate. For some time, one of the biggest points of discussion regarding Philadelphia real estate has been exactly what is to blame behind the relative stagnation concerning the rates of sales in the region. Based on recent analyses, what experts have come to agree on is that inventory simply isn’t high enough to satisfy what would be necessary for home sales to rise in the first place.

What the Experts are Saying

In a report published by Berkshire Hathaway Home Services Fox and Roach Realtors, it was revealed that the greater Philadelphia 12-county region had a home sale rate in the first half of 2017 that was 8.2 percent higher than it was in the first half of 2016. Despite the fact that the number of homes sold in the first two quarters of 2017 was just over 3000 units higher than in the year prior, the number of homes available still just isn’t what it would need to be to match the demand.

Berkshire Hathaway chief marketing officer Steve Storti mentioned that the median price of homes available in the areaPhiladelphia real estate market has been steadily climbing due to the climate. As the prices continue to rise ever higher, the number of average days spent on the market has steadily fallen lower. Consumers who may have an interest in the Philadelphia homes simply aren’t able to spend as much time on the market due to the dwindling amount of choices that there are in the overall inventory.

Just about a decade ago, this would be the time of year in which homeowners would feel compelled to put their homes up for sale; however, the fact that these homes were purchased before the recession means that homeowners can’t be as ambitious about selling as they may have been before the market crashed.

From what experts have seen, it is unlikely that homeowners will be as ambitious as they would normally be to sell their homes under the current conditions until their equity increases substantially. The economy will need to recover more from the lingering effects of the Great Recession before homeowners can see enough of a potential return to drive the kind of supply that will match the demand for more purchases in the Philadelphia real estate market.

Montgomery County, Camden County, Bucks County, Chester County and Delaware County posted the highest numbers of sales for single-family homes sold between January and July 2017. Though home sales are slightly up in the greater Philadelphia 12-county region, the overall inventory is 18 percent lower. The counties that saw the most decline in their monthly inventory were Bucks County, Philadelphia, Delaware County, Montgomery County and Chester County.

The Search for Better Deals

In the coming times, residential real estate experts project that the most real estate activity is likely to be centralized in areas such as the Southwest Center City neighborhood. The Southwest Center City neighborhood had 329 sales in the first half of 2017, with six homes in the 19146 ZIP Code selling for more than $1 million. Though the area may have once been overlooked due to its reputation for crime and building deterioration, higher suburban residence prices have galvanized a greater level of motivation for home buyers and business proprietors looking for more economical options.

 

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