Real Estate Market 2023 | The Gaddy Group Llc | Philadelphia
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2023
PHILADELPHIA HOUSING MARKET
REAL ESTATE AGENT INSIGHTS
 

By Casey Gaddy Realtor from The Gaddy Group & Compass

Philadelphia Skyline

Image Source & Credit: The Philadelphia Inquirer

Philadelphia has experienced significant growth over the past decade, as the city has undergone a revitalization, and Real Estate Agents and Brokers have seen an influx of new residents. According to a report by Zillow, the median home value in Philadelphia was $154,000 in 2012 and has since risen to $177,000 in 2021, representing a 15% increase in sales by Real Estate Agents. This growth has been driven in part by low-interest rates, a strong employment and services sector, and a shortage of available housing. Searching "Real Estate Agents near me" might be a lot of people's first search, but you need more than that. You need someone you can trust. 

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The COVID-19 pandemic had a significant impact on Philadelphia Real Estate, Real Estate Agents, homeowners, consumers, and investors. Many buyer and seller clients seek more space and outdoor amenities as they adapt to remote work sites and search for their dream homes. According to a report by Redfin, the median home sale price in Philadelphia increased by 14% year-over-year in January 2021, increasing competition, with many homes for sale receiving multiple offers and closing above the asking price.

LET'S TALK ABOUT MARKET TRENDS

What are market trends? They are patterns and changes in the housing market, over time. Trends are determined by various factors, including supply and demand, economic indicators, demographics, and government policies. It is important to monitor and manage these trends because they can impact the value and profitability of your selling your house, your business, your company, agents near me that sell and service houses like Realtors & Real Estate Agents, owners of real estate businesses and investments, and Brokers are all involved. 

what are market trends and why do they matter?

Trends Real Estate Agents Are Following

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The average listing amount of homes in a particular area can vary based on supply and demand, economic factors, and other factors. With help from your Real Estate Agent, Monitoring home prices can help investors determine their inventory levels. Inventory levels refer to the number of homes available in a particular area. When inventory levels are high, buyers have more options to choose from, and prices may be more competitive.

Home Prices

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When interest rates are low, it becomes easier for people to obtain mortgages and buy homes, as the cost of borrowing is reduced. This can lead to increased demand for homes, which can drive up home prices. On the other hand, when interest rates are high, borrowing becomes more expensive, and this can make it more difficult for people to afford homes. This can lead to reduced demand for homes, which can drive down home prices.

Interest Rates

the number 3

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Demographics refer to the characteristics of a population, such as age, gender, income, family size, and location. in order to gain insights into the type of housing that is in demand and the housing needs of different groups. This research can help inform decisions related to housing policies, zoning laws, and the construction of new housing. Researching housing demographics can help identify potential areas where discrimination may be occurring, but it is not the same as researching discrimination itself. Discrimination is an unjust and harmful practice that can have serious consequences for individuals and communities, and it is important to address it directly through policy changes, education, and enforcement of the fair housing act and all local laws. Ask your Real Estate Agent for more information about your location or city and how it affects you.

Demographics

the number 4

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Government policies related to housing can include zoning regulations, building codes, tax incentives, subsidies, and lending practices. For example, changes to zoning regulations can impact the types of homes that can be built in certain areas, which can affect the supply and demand for housing. Tax incentives and subsidies can impact the affordability of housing and encourage developers to build in certain areas. Changes to lending practices can impact the ability of individuals to obtain mortgages and purchase homes. Government policies can be influenced by larger economic and political factors, such as changes in interest rates, inflation, and global events. Monitoring these factors can help predict potential changes in government policies that may impact the housing market.

Government Policies

ECONOMIC GROWTH & OUTLOOK

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One of the reasons for what seems to be price stability is the steady influx of new residents with a total population of over 1.5 million, Philadelphia is one of the largest and most diverse cities in the US. As more people discover the city's many attractions, including its rich history, and vibrant culture, demand for housing is likely to continue to grow with more businesses and finding flourishing economy and real estate. With a diverse mix of industries, including healthcare, education, business and finance, real estate brokers and services, and service, and technology companies, the city offers a wide range of employment opportunities for residents such as luxury homes in Philadelphia. 

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The job outlook in Philadelphia is expected to have an impact on the housing market in 2023.  The city's employment rate is slowly recovering from the COVID-19 pandemic, with certain sectors such as healthcare and technology showing strong growth. This could lead to increased demand for housing in areas where these industries are concentrated. The construction industry is expected to continue to grow in Philadelphia, with several major projects currently underway or planned for the near future. This includes the $3.5 billion expansion of the Philadelphia International Airport,  which Real Estate Agents expect to create thousands of jobs and drive economic growth in the region. "Philadelphia's poverty rate fell in 2019, but it remains the highest among big cities,"  was reported by WHYY. Real Estate Agents and Real Estate Brokers remain hopeful while the job outlook in Philadelphia is somewhat mixed, it is likely areas with strong job growth and access to job opportunities will see increased demand for housing, while areas with economic challenges may experience slower growth.

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Infrastructure and transportation will have a significant impact on the Philadelphia housing market in 2023. In particular, improvements in transportation infrastructure and access to public transit can increase property values and demand for housing in certain neighborhoods says local Real Estate Agents,. The completion of significant infrastructure projects, such as the redevelopment of the Philadelphia Navy Yard and the expansion of the Schuylkill River Trail, may make selling these areas more desirable. The development of public transportation options or the addition of new bike lanes and pedestrian walkways make the city more accessible and easier for Real Estate Agents to market. 

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INFASTRUCTURE & TRANSPORTATION
 

Image Source & Credit: Philadelphia Inquierer

how will it play a role?

According to a report by the Philadelphia Inquirer, the expansion of SEPTA's Regional Rail system, which connects suburban areas to the city, is expected to drive demand for housing in areas with convenient access to these rail lines. This includes neighborhoods such as West Philadelphia, where the University City Science Center is investing in new housing developments to accommodate the growing demand. A study by the National Association of Realtors found that proximity to parks and recreational areas can increase property values by up to 20%. It's clear that infrastructure and transportation will play a critical role in shaping the Philadelphia housing market in 2023 and beyond. As the city continues to invest in these areas, we can expect to see continued growth in demand for housing in certain neighborhoods, particularly those with convenient access to public transit and other amenities.a combination of factors that make Philadelphia an attractive place for most people to live, work, and invest.

should I continue investing in real estate?

septa train waiting in station of philly

HOUSING MARKET & AGENT REPRESENTATION

why is having a real estate agent so important?

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  1. Access to expertise and experience: Realtors have the knowledge and experience to help you navigate the real estate market, including pricing, negotiating and legal requirements. They can provide valuable advice and guidance throughout the buying or selling process.

  2. Access to a larger pool of potential buyers or properties: Realtors have access to the Multiple Listing Service (MLS), which is a database of properties for sale. This means they can help you find a wider range of properties or potential buyers that you may not have been able to find on your own and coordinate listings.

Hiring a licensed real estate agent can be a good idea for several reasons, even though real estate agents typically charge a commission on the sale or purchase of a property. Here are some of the benefits of working with a real estate agent and their broker:

Philly Night Time City View From The Schuylkill River

Image Source & Credit: The Philadelphia Inquirerer

Philadelphia Crowded People Event FaIrmount Park Skyline

3. Time-saving: Selling or buying a property can be a time-consuming process. Realtors can help you save time by handling many of the details, such as scheduling viewings, coordinating inspections, and negotiating with other Real Estate Agents and Agents near you.

4. Marketing expertise: Realtors are skilled at marketing properties and can help you present your property in the best possible light to potential buyers. This can increase the likelihood of a quick sale at a good price and getting your home in front of Agents with clients wanting to buy.

5. Professional networking: Realtors have professional networks that can be invaluable when buying or selling a property. They can connect you with other professionals such as home inspectors, mortgage brokers, and attorneys.

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While realtors do charge a broker commission, the benefits Real Estate Agents provide can make the cost well worth it. Additionally, many realtors are willing to negotiate their commission or offer other incentives to make the transaction more appealing to clients. Remember you are negotiating with Real Estate Agent who should be experienced in negotiating - if your Real Estate Agent folds too quickly how will your agent be when it's time to represent you?

Image Source & Credit: WHYY

with love philadelphia xoxo heart

Wrapping up, Philadelphia Realtors, Real Estate Agents, and Brokers can all agree we can't predict the future and no one can be certain about the future of the Philadelphia real estate market. Although, it does seem to look strong and promising for 2023. With a growing population, strong economy, and increasing demand for housing, the MVP real estate professionals in the city and the local real estate agents and brokers, are poised for continued growth and development. , the overall outlook for the local market is positive. Whether you're looking to buy, sell, or invest in Philadelphia real estate, now is a great time to get involved in real estate and be a part owner or buyer of the city's exciting future.

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