Potential buyers are facing a real estate rush in the red-hot housing market in the Philadelphia region. Conditions are radically changing how purchase transactions unfold, report Nydia Han and Heather Grubola for 6abc.
The market is recording historically low interest rates, skyrocketing home prices, and low inventory — particularly in the suburbs.
According to online realtor Redfin, Bucks County residential real estate currently costs purchasers 14.2 percent more than a year ago.
The rate of transactions is also up. An average Bucks County home for sale will remain on the market only 12 days, compared with 32 days in 2Q2020.
The local market is scorching hot. Last May, 378 homes sold in the county. This year’s figure is 693.
Demand has shot home prices up across the Philadelphia suburbs:
- Montgomery County’s prices are 23 percent more than last year
- Chester County prices are up 20 percent
- In Delaware County, the difference is even more dramatic at 37 percent
These market conditions are causing buyers to make decisions in suboptimal circumstances.
Instead of having an hour at showings, buyers now view an entire home in minutes, 6abc says. Offers have become immediate and universally reflect something above — often well above — asking prices. Purchasers are often sidestepping inspections.
For these reasons, some industry experts recommend simply walking away.
“Making the biggest purchase of your life under duress is rarely the recipe for success,” said Greg McBride of Bankrate.com.
Read more about the current suburban housing market at 6abc.