After several years of escalating home prices, bidding wars, and inventory shortages, the national US real estate market appears to be hinting toward a significant correction. It appears the pendulum is swinging away from sellers and back toward buyers
This trend, I believe, is due to a combination of factors like - rising mortgage interest rates, high student loan balances, shifting demographics with the millennial's forming households much later in life, stellar stock market performances making real estate investment questionable and more....
Zillow shed more than a quarter of its market value last week, as a downturn in the housing market weighs on the company's core services and drags profits lower.
According to a Joint Center for Housing Studies - Harvard University, Immigration has become an increasingly important source of household growth and Millennial's will lead household growth.
All real estate however is local. So whats happening in our area? We have Malvern a growing thanks to Vanguard and Great Valley corporate center, Collegeville area thanks to the Pharma companies like GSK, Pfizer, SAP adding to Newtown square growth, local IT industries hiring big time, J&J and QVC in West Chester...all leading to a steady growth in employment.
All the big builders are now building new construction communities in our area - some of the top national builders have now found northern Chester county and there is a flurry of new construction activity. Check out all the new construction in West Whiteland Township. With access to the mountains and all activities, NJ beaches, city life in NY city and Washington DC all within about 2 hrs drive, and of course the thriving and growing 5th larges city in the country - Philadelphia, we are the perfect storm of population growth
I predict that the housing downturn is not likely to affect our Northern Chester county area significantly. We will see a downward trend and shift from large single family homes on large acreage, to low maintenance town homes or smaller single family homes. New construction is the highly preferred housing for the Asian immigrant population and it will continue to thrive.
If you set out to make me think today; mission accomplished! I really like your writing style and how you express your ideas. Thank you. mark ramer
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