September brought another rise in median sale price across most of the Philadelphia region, according to the Long & Foster Real Estate Market Minute Report.
Active inventory continued to decline and homes sold rapidly with days on market ranging from 17 to 31.
We asked Gary Scott, president of Long & Foster Real Estate for his comments on what’s happening in the fall real estate market. “While inventory remains a challenge, the euphoric pace of buyers and multiple offers has subsided to the degree that it’s easier to be a buyer in fall of 2021 than it was in June of 2020,” said Scott. “The real estate market has been going at 100 miles an hour, it’s now at 80 miles an hour and the speed limit is 65 miles an hour.”
Scott mentioned this slight cool down may be due to seasonality, as normally there is a slowdown in the real estate market in the fall. However, he believes homes will continue to appreciate, but at a rate of 3.5% to 4% per year, rather than the double-digit appreciation we’ve recently experienced.
Inflation has increased, causing the cost of goods to rise. We asked Scott for his thoughts on what impact, if any, this is having on the housing market. “There are a number of factors that consumers take into consideration when buying a home,” said Scott. “Inflation may be a consideration for some, while the Delta variant and uncertain global issues, may be a concern for others. But despite it all, homes will continue to appreciate and be a good hedge against inflation.”