Since the recession of 2008, the country’s economy has been booming. Low unemployment, higher wages, and even higher consumer spending all indicate that the numbers are looking good, but economists are also concerned that these levels of prosperity may be due for an adjustment. What do these economic facts mean for the real estate market? Let’s take a closer look at property trends in Philly and how they compare to the averages for the nation.
Numbers Don’t Lie
The country is experiencing what is commonly referred to as slow or soft growth in the real estate arena. That means that home values continue to rise, but not necessarily at the same rate as in the recent past. The fall of 2019 is still a buyer’s market, with a reduced inventory and slightly higher mortgage rates, although these rates are considered historically low. Here are a few figures* to keep in mind:
- Home values – an increase of 3.7% for Philly and 5.2% in the US
- House inventory – a decrease of 4.8% in Philly but an increase of 1.3% for the US
- Rental rate – up 2.9% in Philly, but only up 1.9% nationally
Overall, the buyer’s market continues to be hot both locally and around the nation, which can present challenges to both house hunters and sellers.
Just the Facts
Not only are home values rising a bit, but the same is also true for mortgage rates, although they are still on the historically low side. For buyers, that means you should talk to a mortgage broker before you begin your home search so that you know how much house you can afford. In addition, a lower inventory in the Philadelphia area means you may have to search harder to find what you want or possibly compromise on your wish list to find a good buy. We are starting to see homes remain on the market a little longer but inventory is still very tight which means finding the perfect home can be a challenge.
For sellers, you may have to wait a bit longer to get a good offer, and you may not have those bidding wars that became more common over the past few years. The demand in Philadelphia, especially in those desirable neighborhoods, is still quite high, and if your price your home competitively, you should have success selling in less time than you think.
Mr. Philly Real Estate is on top of the real estate trends and can help you search for property or assist with selling. Together, we can navigate this market for the best deal for your needs. Contact us online to let us know how we can help you or give us a call at (267) 607-9099 to schedule an appointment.
*According to The Philadelphia Business Journal 8/12/2019