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Philadelphia, The City of Brotherly Love, is one of the country’s oldest and most historic cities. With a rich history and culturally diverse population, the city is slated to be one of the hottest real estate markets in the U.S. within the next ten years. But while the hype surrounding Philly’s real estate market continues to rise, it is important to understand how the latest market trends and forecasts will affect you as a buyer or seller.
2019 Real Estate Market Forecast
While 2019 has only just begun, real estate experts from around the region have already laid out their predictions for what the year will bring to Philly’s real estate market. While predictions vary among experts, there is one trend that remains consistent across the board—Philly’s real estate market is normalizing. But while it’s true that the housing market is moderating, it is important to note that the city’s housing sector is still performing better than national averages on several metrics.
As the leading real estate team in Philadelphia, The Mike McCann Team has been carefully analyzing these developments and trends to give you better insight into what these recent changes mean for you.
For people who have spent some time searching the city for an affordable single-family home, 2019 has some good news for you. Over the last couple of years, Philly’s single-family housing market has continued to rise in price which has created an extremely competitive market for buyers.2 But this year buyers may find some relief from bidding wars and price increases as the single-family housing market is expected to cool down a bit.2 While the prices for single-family homes are not expected to decrease, a reduction in their rate of growth can create a bit of wiggle room for interested buyers.
Something to keep in mind: While prices for homes in Philadelphia may continue to rise, the city’s real estate will remain among the most affordable compared to other cities.
While the city’s single-family market is beginning to cool, industry experts still believe that Philly’s real estate market will continue to lean in favor of sellers over buyers.2 With the city’s median home prices continuing to rise by as much as 12 percent year-over-year and the inventory of available units dropping by about 22 percent, sellers are finding that they have more control over real estate negotiations.3 Furthermore, it is estimated that the Philadelphia housing market has about 2.8 months worth of homes for sale, which is an indicator that there may be additional pressure put on housing prices as the year goes on.3
Something to keep in mind: As mortgage rates are set to rise throughout 2019, the number of available buyers may decrease as some people may not have the necessary funds to buy a home.2
While the city’s housing market is beginning to moderate, the future is still very promising for both buyers and sellers. Unlike other metropolitan areas, Philadelphia still offers affordable housing options that make the city appealing to young professionals and first-time homebuyers.
To learn more about how these trends will affect buying or selling a property in The City of Brotherly Love, give The Mike McCann Team a call today or visit us at our new home at KW Philly. Our new office is located at 728 S. Broad Street.