The craziness is true. Offers over asking price. Bidding wars. Less than 24 hour turnaround on home sales. This past Spring, Philadelphia’s real estate market was at its hottest in over five years. According to the City Controller’s Department, over 4,300 homes were sold just in the months of March, April, and May alone. That represents an increase of 11% over 2016 and 28% over 2015 for the same time period.
Philadelphia is luring potential homeowners as a destination city, offering opportunity coupled with affordability. Like other large cities across the country, we have had an inventory problem and homes were going for asking price or above. But that may change as the area is ranked eighth in the nation for new home building. Late Summer is promising to be a prime time to buy in the area.
What makes for a city that trends for high real estate demands and is considered “hot”? Looking across the country right now, there are some major factors the make areas more attractive than others for the new home buyer. Philadelphia fulfills all these trend criteria.
Real estate requires people who have money to spend on homes. And those people need to make that money where they live. Healthy local businesses attract and maintain long term homeowners and provide steady employment and economic stability. A hub for healthcare and education, as well as large and small businesses and startups, Philadelphia is no longer just a historical stopover. Today, Philadelphia is a city that is self-sustained and thriving with business opportunities, large and small.
Great neighborhoods filled with trendy shops and markets are a sure sign of a thriving community. But if these neighborhoods are not accessible, trendy shops will die. The strongest housing markets offer urban areas that are walkable. Not only is it easier and less expensive to get around, but it provides a small town feel in the middle of an urban area and places for neighbors to connect and mingle. Philadelphia has been named the 5th most walkable large city in the United States. You can spend the day visiting historic sites, strolling through Fairmount Park, hitting the latest art opening, and ending the day with an exquisite meal without ever getting in a car.
A Thriving Arts Scene
An affordable area can suggest undesirability, or it can attract the arts. When these neighborhoods flourish, so do home values. When artists come in and revamp a neighborhood, it is a strong indicator for investors and homeownership to follow. Philadelphia, a city of smaller neighborhoods, is one that has embraced the arts wholeheartedly and offers a full spectrum from indie to opera.
Philadelphia’s hot real estate market is showing genuine, sustained momentum. Here, your home is not just an investment, but a piece of an entire lifestyle. Philadelphia’s hot real estate market shows that the new homebuyer requires certain things of a market. Philadelphia dishes those up in fine form. Whether your goal is buying into a piece of our lifestyle, renting, or selling, at Maxwell Realty Company, Inc. our clients rely on us to have our finger on the pulse of Philadelphia living. Let us help you navigate your transaction with comfort and professionalism.