Philadelphia and the 5 County Real Estate and Community News

March 27, 2023

Infuriating Lack of Equity

Well, here we are, AGAIN.

The circumstances are slightly different but the victims are the same.

In 2005, 2006 and 2007 house prices were on the rise.  There was no way they could come down according to every housing professional you talked to.  If you wanted that house, you were paying the piper and that was that.  

Then it turned out Bernie Madoff and his buddies were playing games with money that wasn't real, robbing Peter to pay Paul, and in September of 2008, it caught up and a lot of equity evaporated.

Here we are again.  A lot of professionals will and have been telling you different, but the same outcome is inevitable.

The supply side economic plan of dropping interest rates increased buying power and agents made sure you bid as high as possible to capture that home, because you needed it(they needed a commission too).  There were 16 parties bidding on one home.  Inventory had decreased more than 50% since the last crisis and people had to have the house.

The decrease in inventory is not a new thing but is increasing exponentially because of the problem of "where do you go, now that you've sold".

Now interest rates are finally up.  My kids are all adults now and don't even know about rates like these.  We've been living in a dream world of cheap money.  The good news is that the dollar will have value again.  The bad news is that we have driven up prices. 

This is the cure.  

If you're buying a home, plan to stay there for the long run, unless you can find a home that is finally coming down since people are not willing to put in sweat equity.  

Make sure your agent is experienced and not desperate. 

I still blame most of my colleagues for the current market. 



March 24, 2023

The Numbers Are Misleading!!!!!

When people ask me about the market and what I think, I tell them that it is confusing and infuriating.  



That's easy.....

Take a look at this graph published by our local Real Estate Market for Havertown.


Wow.  Low Home(buyer) demand?  That would seem to indicate that Seller's would have to adjust their prices to attract buyers, right?!?!  

NOPE!  This is completely misleading when you look at the current inventory and compare the numbers to last year or over the last year.....


Yes, in February the number of new listings is out pacing the amount of pendings(properties that go under contract)....

But, the amount of pendings outpace the amount of listings from the previous month.

Why does that matter????

Because it takes 30 to 60 days for the average home to settle.

The real story in this graph is that the amount of listings is way down, and the carry over inventory is decreasing.

There are less than 25 houses for sale in Havertown and way more buyers that are interested.  Buyer demand isn't declining, there just isn't anything to buy. 

When I started selling Real Estate in Havertown there were more than 200 homes for sale! I have 20/20 hindsight and use it to my advantage....  

Tune into tomorrow for the infuriating part



July 31, 2017

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates