Every home buyer and real estate investor on the Philadelphia market knows there’s a time to buy, and a time to sell. With 2018 shaping up to be a growth year, what does that mean for Philly’s growing, ever-changing communities? After 2017 saw an upward trend in housing prices beginning at the start of the year and continuing throughout the end, it’s a fairly safe bet that 2018 will follow in its footsteps.
Growth Happens Fast
A number of factors indicate that housing and real estate prices with rise rapidly over the course of 2018, with an average low-end prediction of 4.9% growth while larger, more metropolitan areas could see boosts of up to 10%. Particularly among active millennials, incentives to purchase are more appealing than ever before.
Although changes in economic factors may have driven millennials away from home buying, transformation of the workforce may bring them back. With remote/telecommute working becoming a way of life, it’s no longer necessary to own a home in the city when you can work from the comfort of the suburbs and other smaller, more affordable communities surrounding the Philadelphia area.
If you’re looking to flip a property for profit, the earlier you buy, the better. Data from Zillow, NAR, Inman, Forbes, and numerous other sources suggest that with looser lending regulations and guidelines, the influx of people with newly-acquired buying power will create a housing shortage that could drive market prices up significantly. Getting in early on this trend means capitalizing on it later by turning around properties at a significant boost on initial purchase costs.
Get Ahead of the Competition
Why is there a possible housing shortage? On top of the new rush of millennials seeking permanence, you’re also looking at:
- A dramatic increase of full-time employed workers with home buying income in 2018
- Higher allowable debt to income ratios and lower median credit scores
- Increased construction with higher labor costs and shortage of materials due to environmental supply factors
All of these elements combine to mean that Philly real estate could be in low supply and high demand. So it’s a smart choice to consider your property investments in late 2017 and early 2018, when 2018 could see a significant repeat of 2017’s patterns of growth.