Fishtown Shows Strong Growth in Q2 2020
Fishtown Market Update 2020. Following previous trends, Fishtown continues to put up strong numbers in the housing market despite COVID scares. While many were worried that the market would suffer, buyers and sellers are still making moves.
Inventory Remains Low
As of today June15th, 2020, there are 188 single family houses for sale in the 19125 zip code. This zip encompasses some of East Kensington and Old Richmond but it’s important to look at these areas at the same time. This sounds like there are a lot of houses for sale but in the past 3 months 122 houses have settled, 75 were marked pending and 49 were recently put under agreement. That means in the past 3 months 246 have either sold or been put under contract. If that rate remained constant, the housing inventory would run out in 2.3 months. That’s a solid seller’s market still.
Looking at this data, we can still see a slowing of properties sold, probably due to the statewide shut down. In Q1 we saw 158 houses sell versus 122 in Q2.
Houses in Q2 are selling Faster
The median number of days on market (DOM) in Q1 settled properties is 32 versus 21 in Q2. That indicates that houses are selling 35% faster than just 3 months ago. This can be attributed to pent up demand caused by the market shut down.
The median DOM for pending listings (24) and recently under contract (17) averages out to 20.5 indicating a continuation of this fast moving trend.
With houses selling faster, they are also selling for a higher original to sale price ratio. The Q1 houses sold at a median percentage of 96.9% while Q2 houses are selling for 97.8%. When considering a $400,000 sale price, this means that right now, your house would sell for $391,200 versus 3 months ago when it would have sold for $387,600. That’s $3600 more in your pocket for timing the market properly.
Average Sale Prices Increased in Q2
The average price for houses sold in Q1 was $389,294 and the average for Q2 is $406,442. That’s a 4.2% increase in just 3 months. Though this isn’t an indicator of actual appreciation of the neighborhood, it does show a tolerance for purchasing higher priced homes in the area increasing.
While the average had a good increase, the median increased dramatically. The Q1 median price was $352,450 compared to Q2 which is at $394,495! That’s an 11.7% increase which is huge. While this could indicate that more prime-location or larger homes are selling, residents can feel secure that their properties are increasing or at the very least maintaining value very well.
Interest Rates are Still Historically Low
About 2 months ago, I made a great move and refinanced my house down to a 15 year mortgage and got an incredible 2.625% rate. I have no regrets but if I was refinancing today, I would be able to get a 2.375% rate. Ridiculous! Many renters in the market are seeing this trend and are realizing that they can put 5% down on a house and pay less than what they are renting for.
Fishtown offers a wide variety of housing stock, from starters to long term family homes. This makes the market strong for first time buyers and move up buyers looking to upgrade. Both are in great positions to take advantage of low interest rates, which for now, are keeping prices strong.
Final Thoughts
While 2020 hasn’t been a year that we will all look back on fondly, the housing market in Fishtown is smiling as it reaps the benefits of pent up demand. Those thinking about selling will be in a better position to make a move soon, as pent up demand may lead to a lull by the end of summer. Many people were hit hard financially, due to the COVID shut down, and that will catch up with the market before many are ready.
If you’re considering buying, don’t let the higher price points deter you from reaching goals. If you’re looking to make a purchase, plan on a 7-10 year hold at a minimum to take advantage of today’s low rates. Even if we see some flux in the market, we’ll be back on track by then and you’ll have great equity put into the house.
I hope you’ve taken a lot out of my Fishtown Market Update 2020. Come back to check out Q3 in October.
Thinking of selling your home? I’m passionate about helping sellers get the most for their house and hitting their goals!
I service Philadelphia and its surrounding counties such as Montgomery, Delaware, Bucks and Chester counties. Call/text me at 267-825-1192 or email me at chris@chrishvostal.com.
