2021 Philadelphia Real Estate Forecast
Like everyone else, we were more than happy to say goodbye to 2020. Please, let the door hit ya on the way out! However, while most of the world shut down, Philadelphia had a fantastic 2020 when it came to real estate, particularly once May 2020 saw the end of sales restrictions due to COVID-19. As a result of the delay, Philadelphia enjoyed a prolonged Spring Market that took us well into the Fall. The boom was excellent for both those buying and selling within the market. Pent up demand coupled with the low interest rates gave people a reason to move. So, do the trends of last year filter into the remainder of 2021? We think so. Today, we’re taking a look at the 2021 Philly Real Estate Forecast and it's looking good.
Experts seem very hopeful that 2021 will be another successful year! If you look around the city, it’s clear that home building is near an all-time high which is also a telltale sign of a market surge. There seems to be a new home going up on nearly every other block, especially in the more tightly knit neighborhoods outside of Center City. In fact, many of the new construction projects being built right now are being offered for rent too, making Philadelphia the city that welcomes everyone. We already see a lot of activity in home sales since the turn of the year supported by the low interest rates that are still holding strong. But one of the influencers for the year ahead is: lifestyle. Our clients are saying that 2020 made them realize the need for more space. With so many folks staying at home more, needing a home office, or even a place for the kids to study, moving is on their mind. For homeowners thinking about selling or renting their home's in 2021, you will be glad to know there is still a lot of demand.
One thing that is also noticed across the board is that most people know someone that has recently bought or sold a home. That’s including younger generations of Millenials and Gen-Z (hello, new faces in the market!). The more that those generations learn that with the right tools, buying and selling isn’t the biggest headache. These fresh new faces are a catalyst to the fast growth of the market and it’s just begun. Plus, the ease of real estate transactions having gone almost 100% digital, from virtual tours to virtual settlements, the process of buying and selling is incredibly streamlined and safe for everyone.
Last, and certainly not least, the affordability of Philadelphia—plus our famous cheesesteaks and pretzels—still has out-of-town buyers coming through in droves. That’s not just limited to New Yorkers! Residents from major cities around the globe have now gotten hip to Philly. It’s a trend that is nothing new but certainly not slowing down.
If you are thinking about making a move or want to know how the 2021 Real Estate Forecast may impact you, Contact The Somers Team.