Why Is Scranton So HOT?
Before the virus hit in March, our local real estate markets in Scranton PA and surrounding towns were moving along quite nicely. We were dealing with investors, many from NYC, Philly, and areas across the country—mostly out of state buyers.
Then the virus hit the fan. No one knew what to think. Everyone was frozen in time, hoping to wake up from the nightmare that only a total lockdown can create.
Then, quite suddenly, it happened. We found workarounds; virtual showings, e-sign, mobile closings, e-verified notary publics, and so forth. With quite unanticipated results--our market started to BOOM!
Listings were being snapped up, sold in less than a week. Multiple offers at or above asking. Constant buyer calls, a shortage of apartments for rent, and listings for sale.
Investors have always been drawn to our area to get in on the great cash-flowing opportunities. Property owners of New York and New Jersey rentals had to subsidize their tenants and hope for anticipated future appreciation to bail them out in the long run. In the short run, they had to dig deep to come up with ridiculous shortfalls in rental income to cover expenses, despite astronomically high rents. Out of pocket, every month. What's wrong with this picture?
So, more and more, they discovered Scranton PA, where the tenants pay the owners enough to more than cover the total expenses, and leave over some CASH! Positive cash flow! A real profit! Who would have thought?
As it turns out, the virus stimulated what I call a syndrome akin to the post-911 mentality. Both investors and end-users were voicing the same concerns: “We want to get out of the big cities and move/invest in smaller, cleaner, more friendly communities, with more space and lower cost of living.” Safety and comfort became a big deal.
Well, folks, you’ve come to the right place. Welcome Home!
June 16, 2020