There seems to be a lot of froth brewing among consumers in Philadelphia, as housing demand in the so-called “City of Brotherly Love” has driven home prices up considerably. According to a recent report, this has been most evident in the Greater Center City district, which includes the heart of Philadelphia’s downtown mortgage space.
Home price increases have been a problem for most of U.S., but in Philadelphia in particular, most are forecasting a continued increase in home prices in the city until the end of 2015. But just as price gains have been decelerating since late 2014, these experts also believe that the same will apply in Philadelphia this year.
Zillow’s data, for instance, shows that home prices in the Philadelphia metro area were up by 9.9 percent over the past year, which is a much faster pace of appreciation than what analysts and economists are now forecasting – an increase of just 3.3 percent this year. As usual, home price increases will continue to be a bane for would-be home buyers, but a boon for those with existing property, especially those who are trying to rebuild their equity.
The push-and-pull of supply and demand, as usual, will continue to be one of the main variables, if not the main variable influencing home price gyrations in Philadelphia in 2015. A lack of supply, of course, would mean higher prices. With regards to supply in 2015, it is a bit concerning that there are not as many homes in the Philadelphia area this year as there were last year.
According to Realtor.com, there were only 29,046 homes listed for sale at the start of this calendar year, which is 18.6 percent lower than the year-ago figure. The good news, however, is that the supply-and-demand equilibrium seems to be improving in the city, which should support the above mentioned number-crunchers’ forecasts.
Meanwhile, Philadelphia should remain a good market for sellers, as data from Berkshire Hathaway Home Services Fox & Roach shows that homes in the city are selling at the fastest clip on record since 2011. That data, while current as of late 2014, is expected to bode well for sellers’ prospects in the current year.