Author Archives: econvery

Presenting the 1Q19 VERY Insight Report!

VERY Real Estate is proud to share our 1Q19 VERY Insight
report, a quarter-over-quarter report outlining the market trends
in the Center City Philadelphia residential real estate market for
our core neighborhoods, namely those areas located within the
geographical boundaries in which we operate: Girard to
Washington Avenues, Delaware to Schuylkill Rivers and all
other neighborhoods in Philadelphia, plus its nearby suburbs.

We are including a review of information critical to make a
decision on whether to engage in a real estate transaction –
either as a buyer, seller or investor – namely: interest rates,
buying power and inventory.

The 1Q19 period showed a decline in the Center City market
with transaction volume and pricing down and Days on Market
(DOM) ticking up significantly, indicating buyers are being
more selective after years of a daunting seller’s market. Greater
Philadelphia and the surrounding suburban counties have not
yet felt this effect, but the city typically is a leading indicator of
things to come.

Our experience shows that well-located, well-priced properties
still move quickly. We’ve seen our share of bidding wars
already this Spring Selling Season, but caution should prevail.

Enjoy this report and as always, please reach out with questions.

The report is available for download here.

Who’s on the Sidelines?

I have been waiting years to see this shift in the market.  As an agent focused heavily on buy-side representation, I have participated in countless transactions marred with immediacy, heightened emotions, and even desperation.  I’ve talked many clients off the ledge as they fought for properties, rearranged schedules to accommodate two hour showing windows right smack in the middle of a Saturday, or calmed their nerves as we anxiously awaited feedback on an offer submitted.  It’s no doubt that the last few years have been heavily-weighted in the Seller’s favor.

I think many buyer agents like myself are taking a collective sigh of relief across this city.  It’s almost daily that we see price reductions on very good properties.  Now the desperate calls come from listing agents seeking any kind of feedback on their listings.  Are your buyers real?  Will they make an offer?  What price do you think will sell this property?

So, here we are.  The scales are shifting in the buyer’s favor.  FINALLY.  If you read any of the news publications, you’ll see that interest rates are at an 8 year high.  High?  They are still sub-5%!  Let’s gain perspective here.

Sure, rates have gone up, but the lending environment is still favorable.  Consumer sentiment is high.  I’m even reading that retailers are expecting the best holiday season in years.  Employment rates are high and the economy is healthy.

Buyers, why aren’t you diving into the market?  I always say the end of the year is the best time to get a deal on real estate.  But this year, in this city, in this environment of shifting, you hold the cards.

Let’s play them.

If you are considering a home purchase, please reach out to our team for guidance.  At VERY, we love to share knowledge at every opportunity.

Remembering our Role in a Changing Industry

You would be living in a cave if you work in residential real estate and didn’t notice all the recent changes in the industry.  It’s almost daily that we read about a new company coming in to the market or a large team jumping from one shop to another.  Everyone is trying to disrupt an industry that has been around for generations -whether through discounted brokerage fees and salaried agents, online behemoths of real estate listings or now, shiny technology to improve the real estate process.

Personally, I love it all.  Innovation means change, progress and growth. It ensures our industry will be around for generations to come.

But, with all this change, are we missing something?  Have we forgotten our roots?

In 2014, we saw the invention of the mobile check-in at hotels with the claims of never speaking to a hotel agent again.  We thought this would revolutionize the industry.  But, four years later, notice that every hotel still has a front desk and we rarely hear of the mobile check-in.  I think it’s because people still want that human connection.  They want to be welcomed to their vacation.  Hospitality is person to person, not person to mobile device.

I feel similarly about the technology shift in the real estate industry.  I welcome it.  I love that companies are shaking up the game promising advancements in market data, CRM systems, even signage.  But at the end of the day, let us not forget the role of the real estate agent.

When we boil our role down to a single sentence it is this:  The real estate agent facilitates the connection of buyers and sellers for the largest purchase (or sale) of the consumer’s life.  There is an enormous responsibility and privilege implied in taking on such a prominent role.

Like the mobile check-in at a hotel, the consumer likes the convenience of the technology that’s available, but ultimately seeks the hospitality in a person to person connection for such an important purchase.  The trust and transparency necessary to guide the consumer with care cannot be replicated by an app on an iPad or a sign that provides a plethora of data from the internet.  It can only be given by the human experience.

Let us use the technology as a tool, but let us never forget the core of our enormous role in a person’s life.

Presenting the 2Q18 VERY Insight Report!

We are proud to present the 2Q18 VERY Insight report!

Some noticeable shifts have occurred in the market this Spring Selling Season with transaction volume down over $90 M since last year. This 13% decline was a result of a $30,000 decrease in average sold price and more than 100 less transactions this quarter than during the same time last year.  Interesting shift.  Our basic economics class tells us that lower inventory should command higher pricing, but not the case in 2Q18 results.  After years of a Seller’s Market and a rapid rise in interest rates, buyers are saying ENOUGH.

As we progress through 3Q18, we are seeing weekly price reductions of properties that didn’t trade during the Spring Selling Season and the Days on Market are ticking away.  Buyers, as always, are still in the market, a credit to the appeal of the city; but they are noticeably more cautious than in years past.  We are continuously asked, are we buying at the peak?  The answer remains to be seen.  But, the softening in the market and the many price reductions should give buyers comfort that we’re finally out of a true Seller’s Market.

Since 2014, VERY Real Estate has published a quarterly report highlighting the trends in the residential real estate market in Philadelphia.  At the beginning of this year, we expanded our report to provide readers with information on interest rates, buying power and inventory trends.  These are factors we believe are critical to understand when deciding whether to engage in a real estate transaction as a buyer, seller or investor.

At VERY, we pride ourselves on our market knowledge and the objective advice we provide our clients and friends.

We hope you will enjoy this report, and encourage you to reach out to us with any thoughts or questions.

View report here: VERY Insight 2Q18

VERY Celebrates its New Office!

The VERY Real Estate team celebrated its new office space by hosting an Open House!  Friends of VERY enjoyed delicious desserts and lively spirits while they toured the space and made new connections.

The VERY team is grateful to all the people who advised us on the new décor, namely Sam Stroback and Krista Duguay of Today’s Systems Corporation and Chaney Widmer of Mix & Match Design Company.

If you haven’t seen the new space yet and are in the neighborhood, please stop by!