Philadelphia is one of the sixth-largest metropolitan areas in the United States. With a population of around six million people, it has become the hub of Delaware Valley and experienced real estate appreciation over the last years.
If you’re thinking about selling a house in Philadelphia, you’re making a smart choice. During the last quarter of this year, the real estate appreciation rate was around 0.83%. Besides, houses have been sold for higher prices due to historically low mortgage rates and inventory.
The Philadelphia real estate market predictions ensure investors’ excellent opportunity in 2020 and the next few years. Now, let’s explore why this city is so promising and how to take advantage of it.
Density Provides Opportunity
Philadelphia is the largest city in Pennsylvania and the second largest on the East Coast. As mentioned above, the population is growing, and nearly everyone wants to live in Center City and University Center because the jobs are located there. Therefore, investors will be looking for properties to convert into multi-family housing or luxury housing.
The Real Estate Market Has Always Been Affordable
The average selling price for Philadelphia real estate is $200,000. Of course, this depends on the safety of the neighborhood and other external factors. But the truth is that you can find condos and older homes that could be renovated with a modest profit margin. Plus, new listings decrease due to the coronavirus outbreak’s impact, and the housing inventory is lower. Consequently, the properties’ asking prices have risen.
The High Return on Investment
According to Zillow, Philadelphia properties have had a 5.4% price increase in the last twelve months and are expected for prices to go up in the upcoming years. Likewise, the appreciation rates are one of the highest in the nation (4%). Philadelphia has become an excellent opportunity for real estate investors or homeowners that want to sell their property at a higher price.
Philadelphia Has a Strong Student Market
Every large city in the United States is home to universities, and the students represent a large portion of the real estate market. Philadelphia has twenty-four-year universities; this doesn’t count two-year college and tech schools. Students from all over the country and the world come to this city and rent houses. Some of them even stay in Philadelphia after finishing their studies.
Why Is Philadelphia a Hot Sellers’ Real Estate Market?
In April 2020, the pandemic has not had any impact on the Philadelphia real estate market yet. Due to many external factors, the city has been experiencing the lowest property supply even before the outbreak.
This has led to an increase in home prices, making it one of the country’s hottest real estate markets. Real estate agents’ activity has been considered a nonessential business, and many homeowners had been working with Philadelphia home buyers to close deals faster.
The 2021 Real Estate Forecast
According to Zillow, since 2015, the average Philadelphia home has appreciated by 41.2%. For example, if the house was worth $133,000, now it’s value is $187,772. However, the latest Philadelphia real estate market forecast predicted a cooling-off trend for 2021.
Next year home prices are expected to decrease by just 1.1% due to the harmful effects of the COVID-19 outbreak. So, if you’re considering selling a house, 2020 is the right year to do it. Many homeowners don’t feel this same way, but the numbers talk for themselves.
Currently, properties have a fair selling price, and you have different alternatives to sell. You can hire a real estate agent, do it by yourself, or contact a trustworthy home buying company like We Just Buy Houses. We buy houses fast in Philadelphia and give cash in hand in as little as seven days.
Thinking About Selling Your Philadelphia House?
Whether you own an unwanted inherited home or need to move across the country for job purposes, We Just Buy Houses is ready to help you. We’re a home buying company that buys houses in Philadelphia, PA, and surrounding areas. There aren’t any fees or commissions involved, and we even take care of the closing costs.
Get in touch with us today by filling out a quick online form on our website or call us at (215) 607-7515. We’ll be more than happy to answer any questions you may have and guide you through the selling/buying process.