The region’s housing stock, particularly in Chester County, is continuing to reach record-low levels, causing prices to skyrocket and reach heights that far outweigh the income of potential homebuyers, writes Ryan Mulligan for the Philadelphia Business Journal. 

According to Kevin Gillen, a senior research fellow at Drexel’s Lindy Institute for Urban Innovation, the inventory trends are “reaching implausible levels.”

In Chester County, inventory has been getting lower nearly every year in the past decade. In 2013, the county had 6.2 months of home supply. In 2014 and 2015, the supply went down to 4.7 months. The following years all recorded a drop: to 4.3 in 2016, 3.5 in 2017, 3.1 in 2018, 2.8 in 2019, 2.0 in 2020, and 0.8 in 2021.

Currently, the housing supply is at 0.5 months. This means that the supply would last for half a month if no new buildings were constructed. 

Meanwhile, home prices have been increasing over the same period. 

The median sales price of homes in Chester County was $280,000 in 2013 and 2014. It remained in the low $300,000s for the next several years until it jumped to $369,750 in 2021 and a whopping $445,682 this year. 

“We are seeing buyers become more and more aggressive as the competitive landscape increases daily,” said Trevor Williams of Vanguard Realty Alliance in West Chester. “What used to be unthinkable is now commonplace, with most sales substantially above initial asking price with little to no contingencies. In my career, there has never been a better time to sell, and if buying in this market, having a detailed game plan with your agent is imperative.”

Read more about Chester County’s residential real estate market in the Philadelphia Business Journal.