November 2023 Market Update

-Evan Frisina

The November market is proving to be a little slower than the September and October markets, in both the city and suburbs. By this, I mean that many properties are accruing additional days on the market before being pulled into a contract.

Many sellers in Philadelphia County (both the city and outlying areas) are cutting prices, or offering buyer incentives to those who approach with interest.

Generally speaking, sellers in Bucks, Delaware, Chester & Montgomery Co. are seeing fewer bidding wars but properties are still moving rather quickly — and some will still see multiple offers (especially those in Main Line neighborhoods). Buyers who tour a suburban property as soon as it lists may be able to secure their preferred terms.

So, what gives? Why the slowdown? Who benefits?

Believe it or not, the market gets relatively quiet each year as the holidays roll in, to the chagrin of many sellers.

The fall and winter months are often the perfect time for buyers on the sidelines to reenter the market and vie for lower prices, especially now that interest rates have increased from their COVID lows.

If I’m buying, what’s the perfect play?

First, understand that inventory is still lacking throughout the Philadelphia region (from Chestnut Hill to Center City and Collegeville to Chester Springs); sellers still have an upper hand in this sense. While there won’t be any steals, you can certainly still take advantage of the seasonality of the real estate market.

Before anything else, see if your mortgage lender is offering any lender credits or incentives. They may waive some bank fees, throw in a credit to reduce your closing costs, or offer a refinancing discount if you come to them when rates drop. Also, ask the lender if the neighborhood you’re searching in is eligible for any grant money. If you’re a first-time buyer and meet certain income requirements, you may also be eligible for special financing terms. Understand the available loan products before anything else!

Once you’re prequalified and have a good sense of the all-in mortgage costs, focus on touring during the fall and winter. Yes, you’ll likely see more properties come to market in the spring and summer (and you can look at those too) but if you find a great house during the colder months, and if you act quickly, you may not only avoid a bidding war but also pay below the asking price. If you’re one of the first buyers in, you have the best chance of getting a seller to meet you closer to your terms (whether that be on the price, inspection terms, or a specific closing date).

So, it sounds like buyers will be in the driver’s seat for a little while. If I’m selling, should I wait?

Remember the old saying “The devil you know is better than the devil you don’t”? It’s sort of the same thing in real estate. The market you know is better than the market you don’t. While the spring and summer months are typically busier than the fall and winter, and while properties may see bidding wars and more foot traffic during the warmer months, the city and suburbs are still technically in a seller’s market. If you’re in Bucks, Delaware, Chester, or Montgomery County, you may need to wait a couple more weeks to secure your buyer but prices are on the rise. If you’re in Philadelphia, it really comes down to the neighborhood that you’re in. In addition to geography, think about how much time has passed since you purchased your property; it’s possible that you’ve made significant equity gains over the years and will take home a healthy profit on your sale.

I’m happy to weigh in with a free market evaluation and feedback. Message me your address here and I’ll write back!

Thanks for taking the time to read my monthly market catch-up. If I could help you find or sell a property in the city or neighboring counties, it would be a pleasure!

Happy fall! 🍁
Evan

Evan Frisina, Compass RE
215-205-7351 Evan (call/text)
267-435-8015 Compass
evan@evanfrisina.com