The Housing Inventory Shortage

The Housing Inventory Shortage

Supply Is Not Meeting The Demand In Philadelphia

With the start of the busy spring real estate market, the biggest challenge facing buyers is the ongoing lack of available inventory. The shortage has generated a competitive atmosphere for buyers; time is of the essence and bidding wars are common. “It’s a seller’s market. Compared to 2012, the average days-on-market is way down in nearly every zip code, while median prices of properties sold in parts of Fishtown and Kensington, for example, are up by 45 percent,” according to Philadelphia Magazine.

Despite the fact that development is up, the supply is not yet meeting the demand, particularly in the first time buyer price range. The reasons for the shortage are multifaceted. The Wall Street Journal reported that economists at both Redfin and Zillow Group said “builders aren’t constructing enough entry-level housing to meet demand.” The chief economist for CBRE Group pointed to “strict mortgage-qualification standards, prohibitive land costs and curtailed lending to small builders.”

With Philadelphia’s growing population and job market, as well as the relatively low cost of living compared with neighboring New York City and D.C., the heightened demand for real estate shows no sign of slowing anytime soon. If you need financing for a new construction or rehab project, or any other type of real estate investment, contact Direct.  We are fast, flexible and fair. We offer creative solutions that make real estate projects happen.

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