With active listings at record lows in the Philadelphia region and the surrounding Montgomery County area, homes selling at record fast rates, the seller’s market will likely remain uncontested for a while, writes Michaelle Bond for The Philadelphia Inquirer.
“It’s probably going to remain a very tight market for a while,” said Brian Donnellan, president and chief executive officer at Bright MLS.
With builders rushing to get permits in and around the counties near Philadelphia, housing supply has started showing some signs of improvement. However it is nowhere close to what is required to combat the huge deficit created by a variety of factors, according to Kevin Gillen, a Drexel University economist.
These include landlords being reluctant to sell properties that are earning them income and baby boomers who are deciding to stay in their homes rather than downsizing.
Another factor is the speed at which homes sell.
For example, new listings were up 140 percent in the Philadelphia metropolitan area last month compared with the same time last year. However, active listings were down by nearly 37 percent over the same period, highlighting the speed at which homes are being snatched off the market.
Read more about the seller’s market in The Philadelphia Inquirer.