National Realty Investment Advisors LLC - Property Market In Philadelphia

According to National Realty Investor Advisors, the history of Philadelphia’s property market sounds a lot like that of many cities in the U.S. Urban flight, economic problems, and the mortgage crisis have prompted a dire need for urban revitalization efforts. But across urban centers, property investors are answering that call.

The vibrant urban core that flourished in Philadelphia earlier in the 20th century began to die out in the latter half as residents fled for the suburbs. By the 1990’s, hundreds of people were fleeing the city every month, driven by lack of jobs, economic woes, and poor financial prospects. The trend was consistent across the U.S. When the housing crisis of the 2000’s slammed U.S. cities like Philadelphia, many homes were foreclosed and some neighborhoods disintegrated.

But Philadelphia’s unique tax breaks led to a residential boom. By abating all taxes for offices and hotels converted into condos, the city fostered residential expansion. When the abatement extended to new commercial and home construction, opportunities exploded.As of 2010, the city had nearly 4,000 separate housing units under abatement, including $15 million penthouse condos, $500,000 luxury condos, and all styles of condos and single-family homes, according to Metro Jacksonville.

Since the housing crisis, many investors have been hesitant to take the plunge into property investment. While every investment affords its own risks, investment professionals at National Realty Investment Advisors suggest that now is a promising time to reenter the market and Philadelphia is uniquely advantageous for such prospects.

Indeed, the rental market is huge right now. According to Census Bureau records, the rate of home ownership rates in the U.S. fell to 65.4 percent in 2012, which is the lowest it’s been since 1996. But rental rates are up and interest rates are down, so there’s lots of potential for landlords.

The Motovo Real Estate blog reports that low mortgage rates and steady prices make it a promising buyer’s market in Philadelphia, based on its 2013 analysis. It found that the median price of property, which was $111 per square foot, is up six percent from last month and has remained roughly steady since one year ago. Overall, housing prices are recovering the most in affluent neighborhoods, so experts suggest that investors focus their dollars there.

Booming tech centers like Philadelphia are some of the hottest markets in real estate. Thanks to swelling job growth and resurging city centers, demand for real estate is strong. Philadelphia has numerous universities and boasts a large population of young and creative talent, so many start-ups and tech corporations have set up shop and flourished there.

Investing in areas of strong job growth is a wise and valuable path to take. In Philadelphia, unemployment is relatively low and was listed at about 6.6 percent in January 2014.

Furthermore, mortgage rates are exceptionally low at this moment, at about 4.4 percent, so properties are selling quickly and it’s important to jump into the market before the most lucrative investments are gone.

The market is also particularly favorable to rental properties. Apartment vacancies are at their lowest in over ten years, at just 4.1 percent, and rental rates are only expected to rise. Meanwhile, the job market has improved steadily since 2009, and that trend is expected to continue. All in all, things are looking favorable for rental property investors.

The real estate market hasn’t always been lucrative, but investors can find promising opportunities if they look in the right places. Thanks to burgeoning job growth and favorable development conditions, National Realty Investment Advisors contend that Philadelphia is ripe with prospects.

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