While the nationwide housing market significantly slowed down last fall, the Philadelphia region is continuing to enjoy a real-estate renaissance that started in 2012, writes Caitlin McCabe for the Philadelphia Inquirer.
The nation saw sales of single-family homes fall to a nearly two-and-a-half-year low in October. However, Philadelphia reached record home sales in the fourth quarter. While some of the nation’s hottest cities, such as Las Vegas and Seattle, saw home values drop, Philadelphia’s grew by 4.2 percent between October and December.
Philadelphia and some of its suburbs are also seeing supply levels near record lows. For example, Philadelphia had 4,235 single-family homes and condos for sale in December.
That same month, Delaware County recorded the lowest inventory in the eight-county region, with just 1,255 units for sale. Meanwhile, Chester County had the highest supply in the region in December.
The drawback of low inventory, though, is that it threatens to worsen the affordability problem already plaguing Greater Philadelphia. Even worse, high demand causes bidding wars that artificially drive prices up, keeping lower- and middle-class shoppers and first-time buyers out of the market.
Read more about the local housing market in the Philadelphia Inquirer here.