Main Line and Philly Market Report - Nov 2022

Dated: December 12 2022

Views: 81

The truth in today's real estate news?

Main stream news leads you to believe the real estate market is crashing like 2008. Sound bytes don't substitute for facts but they do sell advertising. Ok, call me a bit cynical! I prefer honest in-depth factual insights.

There are strong market shifts locally and nationwide. However, micro-market analysis shows stability and strength in our Main Line and Philadelphia Center City communities when you take a 5-year viewpoint vs short-term swings in values and demand.

It's important to drill down into the real numbers for any particular micro-market when making real estate decisions.

Despite the increase in interest rates and slowing of price escalations, the majority of Philadelphia's prime neighborhoods and Main Line communities remain stable and strong when comparing to 5-year averages instead of focusing on short term price adjustments.

Articles quoting dramatic shifts are misleading because the basis of their comparison isn't clarified.

For instance, if a market had a spike in values of 40% and is now down 20%, that's indeed a dramatic shift. Yet they don't clarify how the lowered values compare to 5-year averages.

November 2022 Monthly Stats vs 5-Year Averages

Med Sold $DOMMonths of Inventory
Ardmore$525K vs $323K15 vs 170.4 vs 1.0
Blue Bell$493K vs $460K6 vs 121.2 vs 1.9
Bryn Mawr$593K vs $596K9 vs 201.4 vs 2.5
Gladwyne$1.2M vs $1.1M6 vs 716.8 vs 5.6
Villanova$1.3M vs $1.1M6 vs 492.0 vs 4.3
Wayne$602K vs $543K9 vs 160.9 vs 1.6

Wall Street Impact on Main Street

The spike in values we saw during the past 12-18 months, as well as the quick drop in both values and demand are unlike any other market shift in history.

We can attribute the rapid shifts to not only the influence of COVID-19 driven buyer trends, but also the large influx of institutional funds from US and abroad into residential real estate.

"Housing Market vs Stock Market"

Glenn Kelman, CEO of Redfin, noted insights into the effrect of Wall Street's investment into Main Street in an Inman News interview.

Kelman said the housing market is becoming more volatile. That's happening in part due to the flood of well-funded institutions, which respond to market changes more quickly than individual buyers and treat housing more like shares in a corporation.

"I just think as Wall Street owns more of Main Street, Kelman said, "the housing market will look more like the stock market, which is extremely volatile."

What does that mean for you?

Buyers - If you're thinking of buying in one of the prime neighborhoods in Center City Philly or on the Main Line, now is a good time to negotiate with motivated sellers. Moving forward in times of uncertainty is historically one of the best times to secure a good value.

Sellers - Now is a great time to leverage limited inventory (less competition) and strong values. We can't roll back the clock to the unique spike in values we saw in the past 18 months. However, as you can see from the statistics above, current market values remain higher than 5-year median sold prices in almost every area.

For an instant home valuation, click here, then let's go over detailed analysis of the market condition for your property.

Don't get psyched out of today's market because of news in other parts of the country. And always "peel back" news reports to dig deeper into what is fact vs sound bite hyperbole. 

If you'd like to know more about the micro-market trends in your area, let's talk! You can book a time easily on my calendar.

Susanna Kunkel, Realtor
eXp Realty, LLC
(610) 810-1570

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Susanna Kunkel

Susanna provides executive level service to all her clients based on her years in corporate CEO offices. Creative marketing, global networking and local expertise. Her unique mix of business savvy and....

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