PHILADELPHIA (KYW Newsradio) — So many people are looking for homes but can't buy one because the market is so competitive. Numerous forces from the COVID-19 pandemic are in play, driving the market.
"We thought with COVID-19, the world was shut down," said Keller Williams Philly and Main Line realtor Mike McCann. "We came out of that roaring. The world has changed. People's priorities and their lifestyles have changed."
People who once worked in the city can work from home now, and they want to live in the suburbs - a trend which some realtors say is not expected to end in the immediate future.
"Find the house that nobody else wants," Long and Foster's Jamie Adler, who focuses on suburban properties, suggests.
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"I try to find my buyers houses that have kind of been sitting on the market. My advice is to try to buy that one because, that way, you are not going to be fighting against 20, 30 other people. Now in a neighborhood that has no inventory, then a buyer needs to come forward with whatever they are most comfortable doing, and if it is meant to be they will get the house."
Additionally, various general supply and demand factors weigh into the market being so ultra-competitive for buyers and leading to home purchasers taking steps like waiving home inspections.
"It's lack of inventory in coordination with interest rates being so low. Buyers are just willing to give up their third child just for a house. They are overpaying and waiving all their inspections," said Adler.
"For me as a realtor, I am very uncomfortable suggesting that to my clients. So I give them alternative options. I'll say, 'Look, I can't tell you to waive this, but you could put the inspection in there and put a big deductible in. And what that means is there they are going to do the inspection [and] they will cover up to $40,000, but they just want to do the inspection."
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McCann also said to consider alternative neighborhoods.
"You can buy in an area that is not 110% there, as long as there is upward momentum," said McCann.
"In Kensington by the El is really great. In South Philadelphia, there's great transportation, so look for alternative areas if you can't afford where you want to be, but buy."
Finally, McCann said simply to never give up on buying a home.
"It is still a great time to buy, and I would buy," he said.
"People say 'You are overpaying.' But if you are in that home five, seven, 10 years with these low interest rates, even if you are paying higher than other people, it will have no effect. The four homes I purchased for my family members, I paid all asking price. 10 years later, I look like a genius."
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