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October 26, 2018

Philadelphia Housing Market Predictions 2018, 2019, 2020

Philadelphia is perhaps the brightest housing market in the nation, with one report suggesting a price growth of 16.6% (now 13.4% in May). See the national housing report and the housing forecast for 2019.

Prices have risen 11.3% in the last year and an astonishing 31% in the last 2 years according to Zillow. DOM are at record lows. Buyers are eager, but listings are scarce.

You can see how Philadelphia’s prices contrast to other cities and the general forecast for the US.
That’s much higher price growth than in the Bay AreaLos AngelesMiamiHoustonSeattleSan DiegoNew York and Boston.. For investors, Philadelphia might be one of the best cities for capital appreciation by 2020.

 

Philadelphia Sales Price History and Forecast courtesy of Zillow

 

2018 has been a phenomenal year with new construction releases so plentiful, and while sales and apartment rentals were buoyed by free concessions, the demand is getting so intense that incentives won’t be needed to fill homes and condos being built.

Home buyers in Philadelphia and real estate investors are wondering whether this is a good time to buy in Philly.

How does this city compare with the best cities to invest in? Prices are expected to rise 13.4%, listings have fallen 1200 during the last month, foreclosures are up, and sales actually rose 18% last month.  Sold vs list price was 98% which is much stronger than average in the last 2 years.

Rent Price History courtesy of Zillow

Philadelphia Community Homes For Sale Median Sale Price Price Growth Price Growth Forecast
Bustleton 37 $239,900 7.8% 9%
Chestnut Hill 35 $737,500 7.80% 9%
East Mount Airy 55 $200,000 1.10% 1.60%
Fishtown 122 $324,947 8.40% 10.70%
Fox Chase 23 $229,900 10.30% 9.80%
Mayfair 47 $179,000 11.80% 14.20%
Millbrook 7 $195,000 12.40%
Overbrook 67 $153,900 5.20% 13.80%
Oxford Circle 68 $156,750 9.40% 14.90%
Point Breeze 164 $309,900 23.20% 4.30%
Rhawnhurst 34 $229,900 11.40% 14%
Rittenhouse Square 103 $554,450 1.60%
Somerton 35 $243,400 6.10% 8.70%
West Mount Airy 44 $349,900 1.10% 1.60%
West Oak Lane 79 $140,000 0.60% 12.20%

What’s Driving Philadelphia’s Market

Although not enjoying the same employment rate growth of Dallas or Phoenix, job growth in Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area rose 39,700, or 1.4% over the year, according to the  U.S. Bureau of Labor Statistics.  Demand for homes is steady but availability is the issue as it is in so many cities across the country.

Word is, that the market is driven by Millennials and Babyboomers. It seems millennials are selling their big houses in favor of renting. As rental opportunities appear, we might see more sell their homes.

Median List price rocketing in 2018. Screen Capture courtesy of Zillow

Since 2015, rents have risen about $150 on average, not the same rate as home prices during the same period.

 

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