Predicting the real estate climate

Inventory might be low but there are still properties on the market, like this balconied condo at 1420 Locust St., listed by the McCann Team. Credit: McCann Team
Inventory might be low but there are still properties on the market, like this balconied condo at 1420 Locust St., listed by the McCann Team.
Credit: McCann Team

The changing of the season traditionally brings a few alterations in the Philly housing market. We spoke with several of the area’s most experienced realtors to learn what autumn has in store for buyers and sellers.

Economics 101
The market favors sellers right now, with a high demand for housing making the supply expensive. And it looks like it’ll stay that way through the season, because “there are no significant signs of inventory increasing,” says Jim Onesti of the McCann Team, part of Prudential Fox & Roach.

In other words, says Frank L. DeFazio, also of Prudential Fox & Roach, “as long as inventory is low, sellers will remain in the driver’s seat and prices will continue to be driven up by so much competition for the limited inventory.”

Deciphering the jargon
Realtors like to talk about the “affordability index,” which really just refers to people’s ability to afford the house that they are buying. Income and location come into play when formulating the index. “Even with higher interest rates and higher prices, affordability index remains very attractive for homebuyers,” says Chris Somers, realtor and owner of the Somers Team, part of Re/Max Access.

Mike McCann, owner of the McCann Team, says “interest rates are at historic lows,” but others warn that that could change with the cooler months. “Motivated buyers,” says DeFazio, “might be fearful of rising interest rates and ultra-low inventory, creating feeding frenzies and multiple offer situations on new listings.”

Taxes a’brewin’
This will be something to really keep an eye on, especially if you’re looking to buy downtown. While it may not be apparent right now that taxes will be increasing, McCann believes that there is something brewing. “We have a concern next year with the city increasing taxes so dramatically,” he says. “Many homes in and around Center City will see their taxes double and triple in 2014.”

What about the renters?
Renters and buyers work on different planes, but their respective markets influence one another. “The rental market will continue to soften as the purchase market continues to rebound,” says Chris Somers of Re/Max Access. Somers. That soft market he’s referring to is one where sellers – or in this case, landlords – outnumber buyers or renters. So renters will see a surplus of inventory with competitive prices to match.


News
Entertainment
Sports
Lifestyle
Local

Two young children killed in deadly Queens fire

Two 4-year-old children died after a blaze at their Far Rockaway home on Saturday night. The Queens fire injured three others, including a third sibling.

National

Florida man charged with murdering son to play…

A Florida man annoyed that his 16-month-old crying son was preventing him from playing video games suffocated the toddler, police said on Friday.

International

Powerful 7.2 magnitude earthquake rattles Mexico

A powerful earthquake struck Mexico Friday, shaking buildings and sending people running into the street, although there were no reports of major damage.

News

OMG! Exercise can make skin (and butt) look…

A moderate exercise regime can turn back time and actually reverse the skin's aging process, according to new research. The study showed that a minimum…

Television

'Orphan Black' recap: Episode 1, ‘Nature Under Constraint…

Welcome to “Orphan Black” Season 2! Hopefully Tatiana Maslany can help Tatiana Maslany get through this, with the help of Tatiana Maslany, while avoiding the…

Entertainment

Whoopi Goldberg makes her debut as marijuana columnist

"It helps my head stop hurting, and with glaucoma your eyes ache, and she takes the ache out. It's wonderful," she said.

The Word

Kate Middleton made fun of Prince William's bald…

Kate Middleton and Prince William are in Sydney, Australia, right now, and it sounds like that brash Aussie sense of humor might be rubbing off.

The Word

Is Tom Cruise dating Laura Prepon?

"Mission: Impossible" star Cruise is said to be dating Laura Prepon, star of "Orange is the New Black."

NBA

Deron Williams leads Nets over Raptors in Game…

The Nets traveled to a raucous Air Canada Centre but came out with an important Game 1 victory over the Raptors.

NBA

Carmelo Anthony agonizing over Knicks future as season…

There’s still the cloud hanging over the franchise’s head as to the pending free-agent status of All-Star forward Carmelo Anthony.

NFL

Jets host players with eye toward NFL Draft

The Jets hosted a number of NFL Draft hopefuls for workouts on Thursday, with an eye toward some under-the-radar players.

NFL

Chris Johnson: I wanted to go to 'a…

Now that Chris Johnson is a Jet, the team has to figure out if one of the most explosive players in the NFL over the last half decade has anything…

Parenting

How to parent without gender stereotypes in a…

Christia Spears Brown, Phd. author of "Parenting beyond Pink & Blue" gives advice on raising kids free of gender stereotypes.

Tech

VIDEO: 'Vein-scanning' may become the future of paying

Designed to make transactions quicker and easier, the technology works by scanning the unique vein patterns in each person's palm.

Tech

#FollowFriday: 10 of the smartest Twitter accounts

Spending lots of time on Twitter? You might as well learn something. Here are some of the smartest accounts to follow.

Style

Light-up nail art syncs with phone

This Japanese technology syncs light-up nail art with your phone.