Philly housing inventory hits historic low as prices show 'contradictory' trend

Philadelphia's real estate market has grown tremendously over the last few years and some analysts are warning that acceleration is too fast to be unsustainable.

According to local consulting firm Econsult Solutions, by May 2017 Philadelphia's annual house price increase rate was 22.2% higher than the previous year, 44% higher than 2015. As of July, the average house price of the city rose 15% at 3 months to 158,000 dollars, the average house price rose 13.2% to 198,150 dollars.

The improvement in the employment market and the strong interest in urban housing ownership are the two main driving forces in Philadelphia's real estate market acceleration, but the surge has resulted in far fewer houses in today's market.

A new report on the city's real estate market in the fourth quarter of 2017 shows that the inventory of Philadelphia fell to the lowest level in history

Kevin Gillan, senior researcher at Drexel Lindi City Innovation Institute, says: "As of the end of 2017, 3,329 houses were sold in Philadelphia," This is not the first time that this figure fell below 4,000.The data on this market can be traced back to 2001 So this is the lowest housing inventory level in the city's history. "

Despite the decline in the city's housing inventory, figures in the fourth quarter of 2017 indicate that the average housing price of Philadelphia fell slightly to 0.5%. The median house price fell by 2% from $ 159,900 to $ 150,000, which seems to be due to normal seasonal fluctuations.

"Housing prices are decelerating, stocks are getting lower and lower, which seems to be contradictory." "Normally, supply shortages are putting great pressure on experience and history, related."

From a larger perspective, Philadelphia's average house prices are still rising by 12.7% since last year. This far exceeds the average annual growth rate of 5% in Philadelphia housing since 1980. Housing prices for the top ten cities in the United States (excluding Philadelphia) are only 9% higher than a year ago.

"Possible explanations are not fundamental laws of supply and demand but may be related to buyers' psychology, the possibility that potential purchasers are paying such high prices "In the short term prices and sales are expected to become moderate and / or continue to decline during the remainder of the winter."

According to Gillen it is still too early to tell if this model is the beginning of a six year expansion cycle in Philadelphia. At the end of 2016, similar signs of price cuts were seen before the hottest year in Philadelphia

Here, you can check statistics and observation results at the neighborhood level in the fourth quarter report of Lindy Institute.

About 18 months ago, Christina Ray closed her first house. Last year she made 22 transactions - a great achievement for newcomers in the Denver market where stock prices are at historical lowest prices and prices are still rising. According to DMAR, the average selling price of single-family homes in the Denver region exceeded $ 500,000 for the first time and reached 502,986 in February. My husband and I bought a house and I began seeing the role of real estate agents in education and empowerment. I know that helping people buy a house may be a real service for people. Secondly, I managed real estate and managed apartment building, but I improved. I do not think there are many autonomies. I do not want to limit the way I can help others.

Housing stocks in the real estate market in Philadelphia is currently very tight in 2018. This can explain Philadelphia real estate market trends and price hikes. But by 2018 many new real estate developments are in progress, especially for multi-family residences. On the other hand, in a detached house, the inventory is limited, so even if there is a new construction plan, there are few options for real estate investors in Philadelphia. Are you interested in investing in real estate in Philadelphia? You should do. The real estate market in Philadelphia in 2018 is getting better and better with time. Even if Philadelphia's real estate price rises, it will be relatively cheap compared to other popular real estate markets, but it will still bring significant return on investment.