As we all emerge from our holiday carb comas, two things are apparent:
Sellers are #winning in this market
Buyers are #challenged by this market
If you're a seller, the conditions for selling your home are excellent. Low inventory + low interest rates + high buyer demand = very few speed bumps to getting your home sold. Homes in Philadelphia and the local counties have increased 10% year-over-year, while inventory is down approximately 8%.
Home on a busy road? SOLD
Funky layout? SOLD
Power lines running through the backyard? SOLD
Need cosmetic updates? SOLD
Turnpike noise? SOLD
Increased buyer demand is being fueled by many factors including inbound migration from NY and NJ, rents outpacing the cost of carrying a mortgage, and the desire to move from cramped city dwellings into homes with outdoor spaces.
If you're a buyer, stock up on comfort foods because this will be a bumpy ride. Expect to be competing against 3-26+ offers on homes. Even if you're a full-cash purchase, you may be competing against other full-cash offers. Prepare to waive inspections to be competitive.
If you're a buyer using a mortgage, my recommendations are to:
Work with a trusted local lender.
Shop 10% under your max budget to give you room to escalate your offer if needed.
Get clear on your top 3 dealbreakers and let everything else be flexible .
Be resilient. You may have to put a few offers out there until one sticks.
Be creative with your contingencies. Maybe offering to clear out an estate for the seller is just the nudge that gets you the house.
Be well my friends!
Melissa Walter, CRS, ABR, SFR, REALTOR®
Compass RE / 4 E Montgomery Ave / Ardmore PA, 19003
Serving Montgomery, Bucks, Chester, Delaware, and Philadelphia Counties