Find out if now is the perfect time to buy for you with a look at what the Philadelphia housing market will hold. Each city holds its own unique advantages and trends in the real estate market. From property values to market demands, Philadelphia home buyers have a range of factors to consider when deciding when to buy a new home. Dip into the current housing market and find all this city has to offer its buyers.
Philadelphia Housing Market
Currently, the city of Philadelphia is defined as a ‘seller’s market’. This means the range of home prices is increasing and there is high demand for home listings. Last year, home values in the city grew by around 10.5% and experts picture an 11% increase in 2021. In 2020 realtors in the Philadelphia area reported their home listings lasted on the market for an average of 65 days. That range is becoming shorter as buyers jump on homes even faster in 2021.
Even with a market defined by rising home values, high demand has homes selling at an average of 100% of the listing price. This advantage to sellers helps to build on the equity they’ve grown over their ownership.
As the Philadelphia housing market moves into 2021, experts picture the city making a slow transition towards a ‘buyer’s market’ as supply begins to even out with demand.
Should You Buy Now?
While the term ‘seller’s market’ and high buyer demand might make buying sound like it doesn’t have many advantages, there are actually many pros to today’s Philadelphia housing market.
Buyer demand is high partly due to recent record lows in interest rates on mortgage loans. Lower interest rates give many Philadelphia residents more buying power and help home buyers achieve a higher price range than they would with higher rates.
Another advantage of rising home values comes when the sale goes through. The sooner a buyer can find a home in Philadelphia city that works for them, the sooner they can start taking advantage of rising values and build equity in their new home. As home values live up to the pictured 11% growth throughout the year, new home owners will begin to build on their money right away.
What You’ll Need to Buy
To begin the process towards becoming a Philadelphia homeowner, buyers will need to reach out to a mortgage lending professional in their city. Buyers can take advantage of the current lower range of interest rates and find which type of loan will work best for them. Lending professionals can go over the range of loan options from FHA and conventional loans to VA loans. With pros and cons to each loan, buyers will need to find which loan works with their credit score, down payment range, and income.
Down Payment Range
While there are loan options that offer lower price range or zero down payment advantages, most home mortgage loans will require some money down. To make sure to build a home buying budget that is smart and accurate, buyers will need to know how much down payment they can afford.
A top advantage of buying a home comes with the ability to tailor a home to perfectly fit your lifestyle. Once you’ve worked with a mortgage lender to determine the price range that works best for you, it’s time to build up a list of features you’ll need in your new home. From bedrooms and bathrooms to city location and community amenities, each buyer’s needs are unique. Take advantage of a booming real estate environment and shop around all the Philadelphia housing market has to offer. To see which homes UMH has available in the Philadelphia market, click here.