With mere months left in 2019, it's time to start looking ahead to next year. While no one can accurately predict exactly what the real estate market will look like for Philadelphia in 2020, it is possible to make some educated guesses. Whether you're a buyer, seller or both, knowing the outlook now can help you formulate a plan for the coming year.
Philly's Future is Bright
By all accounts, the future of real estate in Philly continues to look bright. Of course, instead of the explosive growth that was the norm for the last several years, a steady uptick has been noted. Real estate markets across the country are softening and Philly is no exception.
What does set the city apart from others in the United States is its consistency. Philly has been identified as a hot housing market -- even during those times when other localities have struggled.
According to Zillow, housing prices in the city rose four percent compared to last year. The median value of a Philadelphia home is around $157,500. This works out to $180 per square foot for a home's median list price. In comparison, the greater Philadelphia-Camden-Wilmington metro area has an average square footage price of only $150.
However, of the homes currently listed in Philly, their median price is $229,900. This discrepancy indicates that the city continues to be a seller's market with the demand for homes outstripping the availability.
Philly: Beating the Country's Hottest Markets
When you think about the country's hottest real estate markets, Philadelphia probably doesn't immediately come to mind. It should though! Over the past two years, home prices have jumped more than 30 percent. Compared to some of the real estate markets that are considered to be "hot" -- such as Los Angeles, New York, the San Francisco Bay area, Boston, Seattle and Houston, for example -- Philly experienced greater price growth.
While this growth is boosting the prices that homes are being listed at, their median sale prices were $175,900 as of the end of July 2019. About 15.6 percent of these homes experienced a price cut.
Looking Ahead to 2020
When looking ahead to the city's projected real estate market in 2020, it's a good time to buy a home in Philadelphia. Judging by the past few years -- along with the city's steady employment rate -- if you're thinking about getting out of the rent cycle, 2020 is an excellent time to do so.
Not only that, but because the real estate market is so strong, you shouldn't have a problem selling a home you purchase. This makes Phily a good market to invest in as a long-term strategy for moving from a starter home to a more upscale house as you move up the career ladder.
In a nutshell, 2020 is a banner year for dipping your toes in the Philly real estate market. Get started todayand be moved in by January 1, 2020!
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