Buyer Tips

Should I Buy A Home in Philadelphia Now?

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Last week, Federal Reserve Chair Jerome Powell announced that not only would rates not increase, but they are expected to be cut three times in 2024. Once that happens, there will most likely be increased buyer competition and homes are likely to go way above asking price–especially since Philadelphia was recently identified as one of the top 10 national markets with the most pent-up housing demand, according to a National Association of Realtors study. And, it has twice as many affordable homes for first-time buyers as other comparable markets.

If you want to buy a home in Philly, it would be strategic to jump back into the market sooner than later and then consider refinancing later this year. After the competition increases (and home prices increase as well), you can never lower the price you paid for your home, but you can always refinance your loan to lower your monthly payment.

When is the Best Time to Buy a House in Philadelphia?

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A recent study from Attom Data Solutions showed that the best time for most home buyers to save (up to 7.4%) was in the winter months and buyers who closed on the day after Christmas realized the greatest below-market-value discounts of any other day of the year. Here’s why:

1. Less competition

Most buyers prefer to visit prospective homes in the warmer months of May, June, July, and August, which account for 40% of home sales. For the convenience of warmth—and the increased competition for available inventory—you may pay more than 7% higher for a home during these months.

While January and February make up less than 6% of sales, less competition may translate into more negotiating power for the Philly home buyer.

2. Motivated sellers

Sellers listing their homes in the winter often cannot wait until the warmer months when they can make a higher profit. For one reason or another, they need to sell now—empowering you with more leverage in your offer.

In addition, if a Philadelphia home is still lingering on the market from a summer listing, the seller may be more willing to accept a lower offer or give concessions, like assisting with closing costs.

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What are the Best First-time Home Buyer Tips?

Jim Armstrong Buyer Tips , , , , ,

1. Save money
You’ll need to pay your down-payment (some loan programs offer as little as 3%), closing costs (3-5% of sale price), and escrow for insurance and taxes.

2. Improve your credit score
Make payments on time and don’t open new lines of credit or make major purchases—a higher credit score can equal a lower interest rate.

3. Get pre-approved
Shop around for the best loan deal and get it in writing (interest rate and any associated fees). You’ll need this letter when you make an offer. Local lenders often provide great, personalized service at competitive rates.

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