Dreams meet Deals: Philly & Suburb Real Estate

11/16/2024

I am sharing an article on Houzeo about Observations for the Housing market from Industry Leaders:

According to the Committee for a Responsible Federal Budget, Trump’s proposed budget plan is likely to add $7.75 trillion to the national deficit. His plan to impose tariffs on imports could widen the deficit gap and increase inflation.

Higher inflation would lead to higher mortgage rates, making affordable homes even more inaccessible.

Lisa Sturtevant, Chief Economist at Bright MLS

"Trump’s fiscal policies can be expected to lead to rising and more unpredictable mortgage rates through the end of this year and into 2025."

“His mass deportation proposal would have a chilling effect on the construction industry, shrinking the already constrained labor force and stalling badly needed new housing construction. At the same time, proposed tariffs will increase building costs. Limited inventory will keep home prices high and continue to sideline many first-time buyers.”

Dr. Selma Hepp, Chief Economist at CoreLogic

Hepp suggests that Trump’s administration may pursue deregulation in the housing industry. This could potentially include "rezoning federal lands to build homes for would-be first-time homebuyers."

She also indicated that high mortgage rates and affordability challenges will likely persist, making it difficult to predict which of these policies might provide relief.

Anthony Lamacchia, CEO of Lamacchia Realty

Anthony believes the election results will temporarily suppress market activity. However, he expects activity to rebound by January 2025.

Mortgage Bankers Association (MBA) and the Community Home Lenders of America (CHLA)

MBA and CHLA expressed their intention to collaborate with Trump’s administration. The CHLA aims to advocate for policies that reduce costs for service providers and improve overall housing accessibility.

Robert Broeksmit, President and CEO of the MBA, emphasized the need for a national housing director. He also recommended streamlining federal housing policies.

Trump’s presidency may give rise to significant challenges or have a positive impact on the market as a whole. It is too early to speculate.

09/27/2024

Just listed in Lower Merion.

Open this weekend Sat 9/28 3-5pm, and Sun 9/29 2-4pm.

Please come to see this property!

11/28/2023

Additional Reasons Why Real Estate Inventory is So Low-Here is what we need to know:

Inventory is one of the biggest challenges in the current housing market. As there are more buyers searching for homes, and less sellers looking to list their homes under the current conditions, the market is tipped in the seller's favor.

According to the National Association of Realtors, the total housing inventory is down by 18.8% compared to this time last year. The new housing supply is not keeping up with the current demand for a variety of reasons.

1. New Construction Has Slowed Down
Since the housing bubble burst in 2008, we’ve seen a growth in population and demand, but new construction hasn’t been able to keep up. The lack of new and available residences has only been amplified by delays caused by COVID-19 as well.

While a recent surge of new construction due to reopenings has eased some of the pressure, industry experts agree that builders just simply can’t build fast enough. Limited housing supply has been a concern for many years and COVID-19 has proven that demand will continue to outweigh supply.

2. Demand is Surging Because of Low Rates
Amidst the pandemic, the market is seeing some of the lowest rates in years. With current rates hovering around 3.5%, many buyers are anxious to get into the market to take advantage. However, the influx of motivated buyers only further exaggerates concerns over low inventory.

Almost everything housing related, including new home sales, home improvement projects and home prices, are in a V-shaped recovery.

3. Sellers Aren’t Listing During the Pandemic
Many sellers are reluctant to list their homes during the pandemic. Current homeowners are deciding to stay in their homes and wait until more stable conditions before putting their home up for sale.

Those that are happy in their homes are more likely to look into refinancing options and are taking advantage of bargain-basement mortgages and other ways to lower their monthly costs so they can invest in home improvement projects instead.

4. Sellers Aren’t Looking to be Buyers
Potential sellers are also quick to recognize that the low inventory will affect them, too. Everyone needs a place to live after they’ve sold their home, and finding a new home is definitely more difficult than selling your current one under the current market conditions.

5. Shift in Demographics
People are staying in their homes an average of 13 years now, up from an average of only 5-7 years before the housing bubble burst. Many homeowners are aiming to recoup their equity, which has justified their longer stays. However, under the current conditions, sellers are in a great position to break the 10-year trend and sell their homes while demand is high and inventory is low.

6. People Want Larger Homes
Time spent at home during the pandemic has led to an increase in people wishing for more space. However, those that are looking for larger homes may have difficulty in finding one. Homeowners that are currently living in larger homes have less of a need to sell their homes because their square footage requirements are already satisfied and they’re less likely to be looking for an upgrade.

7. Increased Migration
The COVID-19 pandemic has sparked a trend of people looking to move away from their current locations. As remote work becomes more tangible, people are less concerned about their commute times and have more flexibility in choosing where they want to live. As a result, vibrant suburban and more rural areas have seen an extra influx of potential buyers. The less expensive prices associated with living outside of the city are also an influencing factor as people are able to afford more for less.

8. The Market isn’t Distressed
Both the market and equity positions are strong. Because of this, sellers are less likely to be facing foreclosures and short sales, so they don’t have a strong motivation to sell.

9. Investors Are Buying Up Inventory
With interest rates remaining notably low, investors are looking to buy up additional inventory. Buyers are now competing against other buyers and other investors as many people have begun to take advantage of the opportunity to secure an investment property. With favorable market conditions and few alternative investment options, it’s no surprise that investors are turning to the real estate market as well.

With interest rates at a historical low, there are plenty of reasons for sellers to get involved in the housing market. The opportunity for a low monthly payment, additional upgrades, more square footage, and finding the features you’re looking for rather than having to invest in costly renovations, is definitely possible. Both buyers and sellers have a golden opportunity within the housing market, but it’s important to be intentional and competitive in your offerings.

07/19/2023

A Mid-Year Real Estate Market Update-A More Balanced Market

After low interest rates caused a sales frenzy during the pandemic, higher interest rates have created a more balanced market. Home prices have cooled, and in some markets, prices are down from their peak levels. Although inventory has increased, the number of available listings is still low. What does this mean for homebuyers and sellers?

Buyers: While the level of urgency has lessened, multiple offers are often received, so buyers still need to be prepared to make an offer quickly when they find a home they love. In general, it is taking only slightly longer for the typical home to sell than it did during the pandemic market.

Sellers: It’s still a great time to put your property on the market as the supply of homes available remains at record low levels.

09/14/2022

As expected, the rate is going up and up...

Rising mortgage rates are increasingly weighing on the interest-rate sensitive housing sector as the Federal Reserve pushes on with aggressively lifting borrowing costs in order to tame high inflation. The central bank has raised its benchmark overnight lending rate by 225 basis points since March.....

09/07/2022

In anticipation of higher 2023 loan limits, effective immediately, Guild is increasing our conventional conforming, service- retained loan limits from $647,200 to $715,000 for one-unit properties, and higher loan amounts for 2-4 units as described below.
This will be updated in Guild's system effective next Monday September 12.

07/05/2022

Rates are going down, property prices will still rise, in a more sustainable fashion.

Mortgage rates have been volatile in 2022. Most of that volatility has played out in the form of higher rates. The past 2 weeks have been a notable exception.   To understand why this is happening, we first need to consider that higher inflation means higher rates.&nbs...

06/22/2022

If a regional housing market sees a huge uptick in price cuts, it usually means things are beginning to cool down. That's exactly what we're seeing now. Philly is among the top 10

Sellers are adjusting their expectations as they realize many buyers are no longer able to afford the type of home they could have before mortgage rates shot up.

06/08/2022

Home supply was tight before the pandemic made it worse, as many families looked for bigger houses outside of big cities to adapt to remote work. That remains a key factor in B. of A.’s forecast for home prices to climb 15% for 2022 and 5% for 2023.

03/25/2022