Philadelphia is one of the best metropolitan areas to live in the United States. Over the past few years, its housing market has been marked by uncertainty stemming from fluctuating demand and mortgage rates. If you are considering moving here or transitioning from renter to homeowner, this guide takes an in-depth look at the housing market and how to buy a home in Philadelphia in 2024.
Growing Market
According to industry experts, the Philadelphia metro area is one of the top 10 housing markets in the country this year. This includes Wilmington and Camden, which have helped Philly snag the number 8 spot among other 100 metropolitans. The market is expected to experience a resurgence, and experts like Philadelphia real estate agent Mike Fabrizio may see new players in the market.
This renewed interest in Philadelphia is due to many factors. For one, the city is strategically located between Washington and New York, making it highly accessible and connected to major urban hubs. Philadelphia is also a residential dream, with a vibrant job market, walkable streets, family-friendly communities, recreational opportunities, a high-earning population, and stunning homes.
Property Types and Values
Speaking of which, 2024 has seen a slight increase in the inventory of homes for sale in Philadelphia. Zillow predicts that inventory and pricing dynamics will continue to change over the year with a positive trajectory. The current median home value in the metro area (Philadelphia, Wilmington, and Camden) is $341,744. This is a 6.4 percent increase from last year, and the market is expected to grow by 3.1 percent this year. The implication is that sellers will have more incentive to sell, opening up the market.
Dropping Mortgage Rates
Another critical factor in the Philadelphia market is the downward trend of mortgage rates. The 30-year fixed mortgage rate is expected to fall further this year from its current 6.6 percent and open up the market to about 4.5 million households. This should attract more buyers, including low-budget and first-time buyers who may have been previously priced out of Philly. Compared to other metro areas, the market currently holds about twice the average number of homes home buyers can afford.
Buyer and Seller Dynamics
Inventory in Philadelphia has been down over the last two years, pushing away interested buyers. However, the sustained low interest from buyers (also caused by recent high mortgage rates) is turning the market in the buyer’s favor. There is currently cooled competition, which means buyers can enjoy a reprieve. Inventory in the suburbs, however, remains limited, so here buyers may need to sweat a little. Overall, the prices and rates indicate a good time to enter the market.
Explore the Local Market with Mike Fabrizio
Things in the Philadelphia housing market are looking up in 2024, which is good news if you wish to buy a home in the metro area. Experts, in fact, predict that more entry-level buyers will enter the market this year as they take advantage of the low mortgage rates. The rising property values should also encourage more people to sell, freeing up the inventory. If you are considering investing in the market, contact local real estate expert Mike Fabrizio for more insight.
