Friday, January 15, 2016

Are we on the verge of a real estate bust?

#delco #mediapa Is the region on the verge of a classic real estate/housing development bubble?  There's soon to be a...
Posted by on Friday, January 15, 2016

1 comment:

  1. If you look at data from Delaware County, the vast majority of foreclosures are occurring in the southern and eastern part of the county -- Chester, Darby, etc. In other words, they're happening in places where the home prices and income levels are traditionally lower. Media Borough currently has no active foreclosures (although a few homes are in "pre-foreclosure," which means the home owner is behind on payments and the lender has started the legal process that can lead to foreclosure). The 19063 zip code has only five homes in foreclosure. The areas that are suffering from a glut of foreclosures are not areas where the home prices are $500K, or where rents are $1,600+ and, consequently, they have much less land development. Areas like Media -- which sits on a train line and has easy access to the major highways and the airport; has great schools; and contains an active downtown -- are enticing to developers because they consistently attract people who want this location and these features...and are willing to pay for them. Just because the foreclosure rate is higher in Delco, it doesn't mean development in Media is doomed. In fact, the data supports Media being a place that has had an unusually strong housing market, even during the low point of the housing recession. Media is one of the places in Delco that has ensured the county's foreclosure rate is as low as it is -- we should celebrate that.