5 Predictions for the Philadelphia Real Estate Market 2010
Step Aside Psychic TV Network
The Somers Team, RE/MAX Access, Northern Liberties 215-400-2600
I admit it. I love the Sy Fi Channel. I am riveted by the shows about the Clairvoyant Mom's and Ghost Hunting Graduates, and Multi dimensional Universes. I know that Predictions are better left to daytime TV's Montel Williams and Sylvia Brown but just for fun, Chris and I decided to put together a list of our 5 predictions for the Philadelphia Real Estate Market. We do not have any paranormal supernatural powers. We are more like the Crime Scene Investigators on CSI. We examine the evidence and study the science and make our best educated guess.
Below are our 5 Predictions for the Philadelphia Real Estate Market 2010
1) Home Prices Stabilize in Philadelphia. We believe that the home prices will continue to stabilize. People who have 
equity in their home can and will enter into the market with some confidence. They will take full advantage of the lower prices on the buy side. Sellers are just beginning to wrap their minds around the reality that the market determines the value of a home not their mortgage or their bank appraisal from 2006. Thus "price to sell" homes will sell fast at fair market value.
2) Expect a Housing Shortage in Parts Of Philadelphia. Buyers will hasten to get under contract by the end of April in hopes to benefit form the $8,000 tax credit. Therefore we suggest Sellers put their homes on the market by February. There will be a shortage of single family homes early Spring due to the $8,000 Tax Credit in many of the surrounding Center City neighborhoods. The condo market will remain slow but steady, the inventory will remain relatively abundant. There will be some great condo deals to be had but condo buyers, you must keep on top of the inventory! Choose a Realtor who will have eyes on the back of their head so you are the first to know about those great deals.
3) Buyers Will Be Qualified and More Demanding. Buyers that remain in the market through the rest of the year after the $8,000 tax credit expires, may bump into a wave of motivated sellers wiling to negotiate that great deal which will just about make up for the tax credit opportunity they lost out on in April. A note to the sellers: Those buyers will be well qualified and motivated yet they are willing to wait for a great deal. Now is not the time to test the market ! Price your home to sell !
4) 2010 will be a great year for investors looking to purchase with cash in Philadelphia. That goes for the Rent and Hold as well as the builders and rehab specialists. But word to the wise, investors doing rehabs must work fast and do their homework. Know what the resale values are and know what the consumer is looking for. No more shoddy rehabs! Consumers want high quality for less. Looks like our predictions are getting a little help... FHA guidelines regarding seasoning rules are getting softer.
5) The Rental Market will continue to be strong for Renters in Philadelphia. Many of the homes that could not be sold will go on the market as rentals. For those future buyers who want to wait a year or so to save some money, rental prices are affordable.
Related posts:
Discover what the industry leaders have to say about the 2010 Real Estate Market in our blog "5 Predictions for the 2010 Housing Market: 5 Suits Speak 5 Different Perspectives" .
And learn 5 tips to a Better 2010: Is it a good time to buy, sell or invest in a Philadelphia Home ?
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