How low is the inventory?

Why is the inventory so low?

• The pandemic spurred migration from neighboring states
• Low mortgage interest rates
• After the 2008 financial crisis builders slowed their pace of building
• Homeowners now stay in their homes longer:
• the national average used to be 5-7 years, now it's 11-13+ years
• for those who have paid off their homes and/or locked in low interest rates, it's cheaper to stay in their current home
• Many renters have been driven to purchase homes so they could stabilize their housing budget
• Home sale contingencies are a nonstarter in this market. Some potential sellers who need the equity out of their current home to purchase their next home are at a standstill.
• Corporate investors have been buying single family homes and turning them into rentals

What strategies can you use to get a home in this market?

• • • Offering cash is typically more desirable to a seller than receiving an offer with a mortgage contingency
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    • Consider shopping 10% under budget. In most local areas, competing offers typically escalate 10% over asking price
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    • Waive inspections (this is not my personal recommendation, this is just the state of the market we're in)
      • Calculate the risk of repairs against the future price of the home if prices continue to escalate 10% yearly
      • Waive inspections on only the most pristine and/or newly built properties
      • Purchase a home warranty including sewer and water line coverage
      • If waiving inspections is a nonstarter for you:
        • Shop on Holiday weekends when competition lessens a little
        • Make offers on stigmatized properties
        • Consider purchasing new construction (Work with a buyer's agent so that your interests are protected)
  •  
    • Waive the appraisal and/or offer to cover the gap between the appraised price and the purchase price
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    • Waive the mortgage contingency if you can show enough liquid assets to purchase (Waiving the mortgage contingency doesn't preclude you from getting a mortgage)
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    • Consider offering a free leaseback to the seller as needed
    • Consider offering to pay both sides of the transfer tax
    • Consider offering to pay for the township Use and Occupancy inspection repairs (if applicable)
    • Work with a realtor who can help you search for off-market properties
    • Revisit your wishlist, be flexible with some of your search criteria

Current Homeowners: If you  need the funds out of your current home to purchase your next home:

• • • Consider a Home Equity Line of Credit (HELOC)
    • Sell and then rent temporarily

Please reach out if you have real estate questions. For over 12 years I've helped sellers and buyers negotiate real estate in the Greater Philadelphia area, including Montgomery, Bucks, Chester, Delaware, and Berks counties. Having lived in 4 of the local counties, I am skilled in helping my clients navigate their options. 

Melissa Walter

REALTOR®

Certified Residential Specialist (CRS)

Accredited Buyer's Representative (ABR)

Short Sale and Foreclosure Resource Certified (SFR)

Compass RE

4 E Montgomery Ave

Ardmore PA, 19003

o: 610.822.3356

m: 484.459.6966

[email protected]