The Housing Inventory Shortagemollygavin
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.”