2024 Philadelphia Housing Market Forecast

This in-house article is the 2024 housing market outlook for the Philadelphia area based off of our expertise and research (Look for our Baltimore Forecast in the next month's blog)! With all that said, we have been through a lot in 2023. Whether it was interest rates soaring to the highest they have been in over 20 years or the extremely limited housing supply, it seemed as though it was never going to get better. However, we started to see rates start to decrease as we approached 2024 and even though the housing market is not going back to pre-COVID conditions anytime soon, things are indeed starting to look slightly better.

Philadelphia's Home Buying/Selling Market

The 2023 housing market in Philadelphia was still being fueled by buying surge left by the pandemic. However, buying became more difficult due to consistently increasing interest rates coupled with the decreased supply of available housing. Despite these factors Philadelphia is still one of the "cheaper" big cities with it having a median home value of around $270,000. This is $130,000 less than the current national average. Moreover, to combat the increasing interest rates the prices have decreased roughly 4% since last year. Luckily, interest rates are slowly starting to go back down and while prices might stay the same or increase with these lower interest rates, that could lead to an increase in housing supply due to more people being ready to sell a home knowing someone will buy it relatively quickly. On the other hand it is proving to be more and more difficult to build a home in Philadelphia due to an increase in laws and regulations, as well as the price for labor and materials being at an all time high. From 2022 to 2023 builder sentiment in Philadelphia went from 76 out of 100 to 45 out of 100, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. This in turn leads more people into rehabbing existing homes rather than building on unimproved land.

Philadelphia's Renters Market

The rental market has kept its strong presence in Philadelphia! According to a study, renters take up 47% of Philadelphia, Pennsylvania real estate, occupying a total of 289,341 units, while homeowners live in 323,784 properties. This ratio shows just how strong the Philadelphia renters market is and the importance of rental housing to the Philadelphia area. It has also been seen that 79% of renters find themselves in the same home as they were renting the year before with another 14% moving to another property in the same county. This is great for investors as it shows peoples willingness to stay which in turn helps the landlord avoid frequent turnovers. Another aspect of Philadelphia that helps its renters market is that it is home to around 53 colleges in and around the area. This not only sustains the need for rental properties but also offers investors guarantors for leases (such as cosigners) which help ensure that the rent will be paid and arrive on time.

Philadelphia's Housing Market Outlook for 2024

Whether you are in the buyers or renters world Philadelphia is an extremely seasonal marketplace. The highest peaks of the summer months, the DOM (days on market) averages around 35 – 45 days. Again, Philadelphia follows the classic wild summer selling months and slow winter months in terms of real estate values and sales. For real estate investors or buyers looking for good deals, shop during the coldest months of the year. The depths of real estate winters in Philadelphia bring tough times for sellers. Last winter (202 2 into 2023), Philadelphia suffered from a staggeringly long DOM of 70 Days in the month of February. This was the longest DOM in 5 years. From our standpoint we see the same thing with renting during the winter, it is not only much slower but also there are some owners who end up offering incentives or decreased rents in order to get people into their units.

While Philadelphia is still considered one of the poorer "big cities" it still finds itself growing and improving. Philadelphia's non-farm employment rose by around 139,000 jobs in April 2023 on a year-over-year basis to 3.09 million. In April 2023, the unemployment rate in Philadelphia was 3.1%, according to the Bureau of Labor Statistics. That's a 1% decrease year over year. The national unemployment rate in April 2023 was 3.4%, down 0.2% year over year. These promising employment statistics should not only benefit the area overall but will also increase the demand for people to both buy and rent housing in Philadelphia.

Buyers & Sellers Forecast

Philadelphia has a very strong housing market and a surprisingly affordable price point for being considered one the the "bigger U.S. cities." This is reflected by the Philadelphia housing supply that should hopefully see an uptick in inventory with the decreasing interest rates. It is also important for buyers and sellers to stay patient during these times. Sellers should adjust their prices accordingly but not settle for an offer they aren't completely content with. Even though prices are lower than they were a year or two ago, the decrease in interest rates should help out as well as the extremely limited inventory. Buyers can also benefit from being patient as inventory should increase and those same houses that they were looking at before will become more affordable. Nevertheless, as a seller we advise that you don't sell unless you absolutely need to or you are going to be very satisfied by your return on investment. As buyers, we advise that you never buy something you cannot afford and to have a budget/plan in place before you even start your home search.

Renters' Forecast

Philadelphia has a very strong rental market which is perfect for investors and renters alike. From an investors standpoint, the average rents are high enough to profit off of your investment while also being in a position to be able to sell your property for a very decent return if needed. From a renters standpoint, the rent in Philadelphia is much more reasonable than in other "big cities" while also having more units/houses than those same comparative cities. Additionally, with jobs increasing and unemployment decreasing it should attract more people to the area that might not be ready for the commitment of buying a home. Moreover, the schools in and around the area help sustain the rental market, especially in the areas close by to those schools and appealing to college students.

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Weatherizing Your Home For The Summer

By Brent Khusid • 30 Apr, 2024

Weatherizing Your Property for a Cool Summer: Tips for Northern Homeowners As the warmth of summer approaches, it’s time for Northern homeowners to prepare their properties for the seasonal shift. While most people associate weatherizing with winter, it’s equally important to ensure your home stays comfortable and energy-efficient during the hot summer months. From sealing air leaks to optimizing insulation, here are some essential tips for weatherizing your property in the North for a cool and pleasant summer. Seal Air Leaks: Air leaks not only let cool air escape but also allow warm, humid air to enter your home, making your cooling system work harder. Inspect windows, doors, and any other openings for cracks and gaps. Caulk or weatherstrip these areas to prevent air leakage and improve energy efficiency. Insulate Attics and Basements: Proper insulation is key to maintaining a comfortable indoor temperature year-round. In the summer, insulation helps keep cool air inside and prevents hot outdoor air from seeping in. Ensure that your attic and basement are adequately insulated to minimize heat transfer. Install Energy-Efficient Windows: Windows are significant contributors to heat gain in homes. Consider upgrading to energy-efficient windows that are designed to reduce heat transfer and block harmful UV rays. Additionally, installing window treatments such as blinds or curtains can further enhance energy efficiency by providing shade and insulation. Use Fans Strategically: Ceiling fans and portable fans are cost-effective ways to improve air circulation and create a cooling breeze indoors. In the summer, set your ceiling fans to rotate counterclockwise to push cool air downward. Use portable fans to direct airflow toward occupied areas, allowing you to raise the thermostat temperature without sacrificing comfort. Maintain Your Cooling System: Before the summer heat sets in, schedule a professional inspection and maintenance service for your air conditioning system. Clean or replace air filters regularly to ensure optimal airflow and efficiency. Consider upgrading to a programmable thermostat to regulate indoor temperatures and save energy when you’re away from home. Shade Your Home’s Exterior: External shading can significantly reduce solar heat gain and lower indoor temperatures. Planting trees strategically around your property can provide natural shade and enhance curb appeal. Installing awnings, pergolas, or trellises over windows and outdoor living spaces can also block direct sunlight and keep your home cooler. Use Reflective Roofing Materials: If you’re due for a roof replacement or renovation, consider opting for reflective roofing materials. Light-colored roofs or those coated with reflective coatings can reflect sunlight away from your home, reducing heat absorption and lowering indoor temperatures. Minimize Heat Sources: Appliances and electronics generate heat when in use, contributing to the overall thermal load in your home. Minimize heat gain by using energy-efficient appliances, turning off unnecessary electronics, and avoiding activities that generate excess heat during the hottest parts of the day. Seal Ductwork: Leaky ducts can result in significant energy losses and reduce the effectiveness of your cooling system. Inspect your ductwork for leaks, gaps, or disconnected joints, and seal them using mastic sealant or metal tape. Properly sealed ducts ensure that cooled air reaches its intended destination efficiently. Schedule a Home Energy Audit: Consider scheduling a professional home energy audit to identify areas for improvement and prioritize energy-saving upgrades. An energy audit can help you pinpoint inefficiencies in your home’s thermal envelope and HVAC system, allowing you to make informed decisions about weatherization and energy conservation measures. By taking proactive steps to weatherize your property for the summer, Northern homeowners can enjoy a cooler, more comfortable indoor environment while reducing energy consumption and utility costs. Whether you’re sealing air leaks, upgrading insulation, or optimizing your cooling system, investing in weatherization now can pay dividends in energy savings and home comfort for years to come. So, gear up for a cool and enjoyable summer by preparing your home to beat the heat!

How to Make Your Rental Stand Out for the Spring and Summer

By Brent Khusid • 29 Mar, 2024

5 Ways to Make Your Property Stand Out as Spring and Summer Approach As the temperatures rise and nature begins to bloom, it’s the perfect time to elevate the appeal of your property. Whether you're preparing to sell, rent, or simply want to enjoy a refreshed atmosphere, spring and summer offer fantastic opportunities to enhance your property's allure. Here are five effective ways to make your property stand out as the vibrant seasons approach: 1. Enhance Curb Appeal The exterior of your property is the first thing visitors notice, so it's crucial to make a stellar first impression. Start by tidying up the landscaping: mow the lawn, trim bushes and hedges, and add fresh mulch to flower beds. Plant colorful flowers that thrive in the warmer weather to add pops of color and charm. Additionally, consider giving your front door a fresh coat of paint or adding stylish house numbers and outdoor lighting fixtures to create an inviting entrance. 2. Create Outdoor Living Spaces Take advantage of the warmer weather by creating outdoor living spaces that encourage relaxation and entertainment. Whether you have a spacious backyard or a cozy balcony, investing in comfortable outdoor furniture, such as lounge chairs, dining sets, or hammocks, can transform your outdoor area into a retreat. Add finishing touches like outdoor rugs, throw pillows, and potted plants to create a welcoming ambiance where residents and guests can unwind and enjoy the sunshine. 3. Add Seasonal Décor Embrace the spirit of the season by incorporating seasonal décor into your property's interior and exterior spaces. Swap out heavy winter textiles for lighter fabrics and bright, cheerful colors that reflect the energy of spring and summer. Consider placing vases of freshly cut flowers throughout your home, displaying vibrant artwork, or updating throw pillows and bedding with floral patterns or tropical motifs. Outside, hang festive banners, string lights, or place potted plants and hanging baskets to add a touch of seasonal charm. 4. Upgrade Outdoor Amenities Make your property a desirable destination by upgrading outdoor amenities that cater to warm-weather activities. Install a barbecue grill or outdoor kitchen area for al fresco dining experiences, set up a fire pit or outdoor fireplace for cozy gatherings on cool evenings, or add a swimming pool or hot tub for refreshing dips and relaxation. Providing these outdoor amenities not only enhances the enjoyment of your property but also increases its appeal to potential buyers or renters seeking a resort-like lifestyle. 5. Highlight Natural Light Maximize the influx of natural light that comes with the longer days of spring and summer by showcasing your property's windows and outdoor views. Remove heavy drapes or curtains and opt for sheer or lightweight window treatments that allow sunlight to filter in while maintaining privacy. Rearrange furniture to capitalize on natural light sources and create bright, airy spaces that feel open and inviting. Additionally, consider adding mirrors strategically to reflect light and make rooms appear larger and more spacious. By implementing these strategies, you can make your property stand out as spring and summer approach, creating an inviting and appealing environment for residents and guests alike. Whether you're looking to sell, rent, or simply enjoy your home to the fullest, embracing the vibrancy of the seasons will enhance the beauty and functionality of your property. So, seize the opportunity to refresh your surroundings and make the most of the warmer months ahead!

Unveiling Pittsburgh's Real Estate Market

By Brent Khusid • 29 Feb, 2024

As Pittsburgh, Pennsylvania, undergoes a renaissance, its real estate market stands as a beacon of opportunity for investors seeking long-term returns and stability. In this article, we delve into the dynamics of Pittsburgh's real estate market and outline the best strategies for investing in this burgeoning city.