Economists predict a recession by 2020. What does that mean for real estate, and for the Philly market? I recorded my Facebook LIVE update and shared below – summary of the market and tips for buyers, sellers and investors:
Full presentation slides with links to source data:
What does that mean for you?
- Buyers; check out the proforma showing predicted increase in rates and impact on cost of ownership. Even if values are flat in two years, it makes sense to buy now!
- Sellers; low inventory, strong demand, good buyer creditworthiness all add up to now being the time! If the rates go up, and the economy goes down – that means you’ll have fewer buyers and a lower price point in 1-2 years. Unless you can hold it for several years, let’s talk about today’s market opportunities.
- Luxury Market – you’ll see the most buyer activity in Philly’s luxury market between $1M and $1.5M. When a recession hits, the luxury market suffers first. Unless you plan to stay in your property for many years, we should meet right away to maximize on today’s values, interest rates and buyer demand.
- Timing; please check out the demand chart comparing activity between 2017 and 2018. Last year, October was a strong month! Putting your home on the market before September would be a wise decision.
- Flippers and Builders; when a shift happens, it often hits you first, and hard! Successful strategy is to plan for a win either as a rental or sale. Be sure to check out last week’s August Report for more details and insights into Philly’s hot rental market.
See you soon! Look forward to creating a strategy for your success in a changing market.