If you’re thinking about moving to Philadelphia or simply buying a new home here, you should know about the following four trends currently affecting the real estate market. Right now is a great time to buy or build.
The Market Is on the Rise
One reason it remains a seller’s (or builder’s) market here is that Philadelphia has a very favorable outlook in terms of housing prices. Looking forward at the next year, prices could go up as much as 0.5%, an amount that any other region in the country would envy.
Two of the area’s economic staples, biological research and healthcare, are expected to see job growth in 2016 as well, which helps explain this trend. Although unemployment is still a bit higher than the national average, that should begin to reverse which will coincide with the housing market’s outlook improving even more.
Philadelphia Is Still an Extremely Affordable Place to Live
Another factor that is bolstering the housing market in the City of Brotherly Love is that the cost of living isn’t moving much. Though it’s a bit weaker than it was back in 2014, that is starting to change. Still, Philly remains more affordable than the majority of comparable cities in this country.
New homebuyers may have to pay more for their houses, but that doesn’t mean their living expenses will need to be equally high.
Downtown Is Getting a Facelift
Another unique feature of the Philadelphia housing market is that many Millennials are actually heading back to the city. As a result, downtown Philadelphia is progressively improving as developers look to make the area as inviting as possible. First-time buyers are also doing their part to revitalize the city by becoming the source of revenue for local businesses.
So great is the housing market downtown at the moment that Philly reported its best second quarter in a decade this year (where values are concerned). The average value of a downtown residential property was up 7.3%.
The flipside of this is that older homeowners now have more suburban spaces to consider.
More New Houses Are Being Built
As we touched on above, this is very much a builder’s market here in Philadelphia. New construction – especially of single-family houses – increased nearly 2% in 2014 and that trend is continuing. This is big news when you consider that, in many cities, housing was still feeling the effects of the recession two years ago.
These new houses are being built primarily in the metro area, while downtown homes are mostly condos and townhouses.
If you’re interested in taking advantage of this unique moment in Philadelphia’s housing market, give us a call at Red Hook Construction. Our number is 123-456-7890 and we’d love to answer any questions you may have.