Over the last year, across the United States, we’ve seen absolutely wild trends in the housing market. From record low inventory, to record high sale prices, it’s been like nothing we’ve seen since 2008. Has the market in the city of brotherly love looked the same as elsewhere in the US? Has it been worse? Keep reading to get an idea as to whether it’s the right time for you to possibly buy or sell.
Where It’s Been
Throughout the year, Philadelphia has had one of the hottest markets anywhere in the US. In recent times, the amount of buyers looking at Philadelphia Houses for Sale far exceeds the amount of options available. This is the case for both homes directly in the city and those available in the larger metro area.
The price increase is largely not only due to low inventory, but also low mortgage rates. This has allowed the price of homes to soar well past the average household income growth. Now, many homes are becoming less and less affordable for many Philadelphians.
Looking back toward around the year 2000 and comparing it to today’s market, current housing inventory is around 50% smaller. That has obvious impacts on the pricing with a nearly 13% increase in 2020 alone.
Where It’s Going
Unfortunately for buyers, there are many indications it will remain a seller’s market for the foreseeable future due to the mentioned combination of low interest rates, high demand, and very low supply. On average homes listed on the market are gone in under 2 weeks indicating there is likely no slowing down.
The trends indicate the prices will keep getting higher and higher, making the offerings more attractive for potential sellers. The bit of good news is that prices are slightly lower than they were at their worst last year. When looking there, it might seem like a good time to buy, the story does look different when diving deep into the past.
If you are looking to buy, and can wait, try to do it at an odd time to get the best possible deal for you and your family. Consider the cold weather and the school year as friends of yours during this unprecedented market. Things tend to cool off, relatively, during the later parts of the year and that might be the help you need to get you into the house you actually want.
The Long Term Look
In short, no one knows how the market is going to look in a few years time. As they say, time in the market always beats timing the market. Use that as some comfort if you decide buying sooner than later is the right move for you.
Even if there’s a short term correction, which is entirely possible, if you are looking to hold your home long term, you should make out ahead when you are finally looking to sell. Do keep in mind that, historically, the market has always gone up.