New construction on the rise in Philadelphia

Summer is a time for beer gardens and festivals to shine, but it’s also great house-hunting season. We spoke to a couple of local pros to learn just how the summer housing market is shaping up so far. Hint: it’s not too shabby.

Starting hot

“Philadelphia’s market has been extremely strong this spring and summer,” says David Snyder, a realtorand co-founder of Center City Listings. How does that translate into numbers? “The center city market has settled approximately 16 percent more properties over the last four months than we did during the same period of 2014,” Snyder says.

Frank DeFazio, realtor at Berkshire Hathaway Home Services Fox & Roach, likes to put it another way. “So far the market in Philly is characterized by low inventory, high demand and still historically low interest rates,” explains DeFazio. “This combination is causing feeding frenzies for move-in ready homes that are priced fairly.”

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The curveballs

“The biggest surprise is that the single-family new construction keeps booming across all price points and areas,” says Snyder. “Philadelphia feels like a city on the rise with new construction in every stage of the process in every neighborhood.” That equals more homes to offset the low inventory DeFazio mentioned.

Where to hunt

“I’d say Fishtown and Pennsport are the two hot new neighborhoods getting the most attention both for the new residential housing projects they offer and the exciting businesses, restaurants and shopping options that are popping up,” says DeFazio.

Snyder sees things a little differently: “It’s hard to say one area is hotter than another, but what I would say is that new construction is hot. Established neighborhoods are selling out the little new construction they have at an insane pace. The days of pre-selling unfinished properties are back – with buyers needing to make the choice to buy often before a model home is even completed.”

Summer vacation

“Real estate markets are cyclical and we always hit a lull in late summer as families go on vacation and kids go back to school, says DeFazio. Both he and Snyder agree that we can expect to see a rise in interest rates by the end of the year.