Inventory is Rising | #ClosingTalk Ep 25
Something interesting is happening right now in Philly real estate…
My name is Torey (some call me “T”) and I help urbanites (like yourself), who are interested in buying and selling real estate; connect the dot’s between the stuff have have already seen online or their past experiences, to what they actually need to know in today’s real estate markets in order to accomplish their goals…
In this week’s episode of #ClosingTalk we are talking about supply and demand in the marketplace. The data I am looking at in this episode covers residential real estate from Snyder Avenue to the south, Cecil B Moore to the North, River to River to the east and west, and inclusive of Fishtown proper (Front to York to river).
What is happening in the markets? Good thing I have the answer for you. This chart shows a recent upswing in inventory on the markets and subsequently days to sell is starting to rise with it. So what does this mean?
This means that for the past month and a half we have seen more inventory coming onto market than properties being taken off market via settlement or withdrawal. Another way of putting this is the heatwave that we have seen in the spring market is beginning to sizzle in terms of sheer tension in the marketplace. This tension in the marketplace I am talking about is essentially the sheer volume of buyers vs the scarcity of properly priced salable houses. This indicator suggests in the coming months we may inch closer to a balanced marketplace.
What does this mean specifically to market health? This is characteristic of market health based on this time of the year. Normally the ebb and flow of supply and is reflective of an average sale price that shifts accordingly. Now, in the market, average sale price just began creeping down and we will see out fall rebound late this month and into September until the average sale price retreats again until next spring.
Enough with the health of the market and the yearly high times and low times for price, what about the big picture? How are we looking there? This year, we have seen the continued trend of small, yet sustainable increases in price year over year. I personally, do not see anything holding us back from sustaining this modest annual 1–2% increase in median sale price.
An important note about this post: This post is a reflection of the month-month volatility in the markets. Real estate ownership should be measured in a span of many years. The month-month overview of volatility is only helpful when figuring when to transact real estate.
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