The most recent Credit Suisse Survey on housing for Philadelphia shows a lot of negative information. Traffic is below expectations of agents and prices are declining with longer time on market for those homes that are listed.
75% of agents surveyed said traffic was below their expectations for the month of August, a generally slow month usually in the housing market. Home prices continued to fall with sellers needing to reduce prices or offer incentives to create sales according to 60% of the agents surveyed. 75% of agents also said the time needed to sell a home had increased as well.
Some of the factors mentioned for this was a lack of urgency among buyers and a lack of confidence in the job market as well.
Whilst Philadelphia region has suffered less than elsewhere, there remains a large inventory of homes, allowing buyers to take their time and be selective and demanding when making offers on homes in which they are interested. The pressure on prices is expected to continue through 2011 and whilst many buyers when prices were rising rapidly were able to do what was required to buy a home, many sellers are unable to drop prices low enough or provide adequate incentives to encourage buyers to take advantage of the low interest rates and motivate them to make offers.