Five Things to Know About the Philadelphia Housing Market in 2020
Known as the great City of Brotherly Love, Philadelphia is showing signs that it’s going to have a healthy housing market next year. For many years, the city has been an excellent place for real estate investors and homeowners to get involved with its housing industry. If you are already engaged in real estate or are looking to buy a home in the area, below are five things you should know about the housing market in Philadelphia for 2020.
1. Affordable Prices Compared To Other Hot Markets
For the coming year, real estate in Philadelphia’s housing market will be great for home buyers because of the affordability of the market. Houses put up for sale are going to be relatively affordable compared to the prices in other popular locations when concerning investment properties. The median property cost does exceed the national level. However, it is still significantly lower than other hot real estate markets in areas such as San Diego, New York, and Boston.
Affordable prices of houses in 2020 will definitely attract home buyers.
2. Above Average Appreciation in Real Estate
For the past 20 years, the natural appreciation rate has been above national levels for the real estate market in Philadelphia. Experts believe this trend will continue next year because population growth continues to remain active. Additionally, experts do not think the property prices are going to grow at a rate that will end up causing a housing bubble or affordability crisis. Alternately, that is a current prediction for the overall housing market in the United States for the coming year.
3. Transitioning Into Buyer’s Market
Currently, Philadelphia is going through a reliable seller’s market. The forces behind this trend are going to push the city into a buyer’s market for 2020. Anyone considering purchasing real estate in Philadelphia next year will have an excellent opportunity to get a place at an affordable cost. Homeowners looking to buy will have countless options to choose from, and they will not have to engage in competitive bidding wars. It could also be an opportunity for inexperienced real estate investors to purchase investment properties during hot markets.
2020 is a great year to invest in properties.
4. High Return On Your Investment
According to the predictions of an expert from Mashvisor, buying a home in Philadelphia during 2020 will be a profitable and wise investment. On a city level, the real estate market trends, cash-on-cash returns and cap rates in Philadelphia are expected to be some of the best across the nation. Homes for sale in Philadelphia are going to generate a significantly higher ROI than other hot markets.
5. Townhouses For Sale Are Trending
In 2020, townhouses will dominate the Philadelphia housing market more than single-family homes. Currently, nearly two-thirds of all listings for the real estate market are townhouses for sale. Expect that this trend will continue next year. Anyone looking to purchase a piece of real estate in Philadelphia will be happy to find out this type of property has a high ROI and can be a great option to use as a rental unit or an Airbnb. According to experts, next year will have a strong demand for rental properties.