Wealth. Legacy. Lifestyle.
Whether you are a reluctant landlord or emerging investor, this newsletter is for you. You can count on the Real Estate Wisdom newsletter to provide the inside scoop from talking to buyers & sellers, studying the market trends, and following what is going on at local city halls.
If you think this info is useful, remember to share.
Action Inspiration
If your dreams do not scare you, they are not big enough. Ellen Johnson Sirleaf, President of Liberia
The number #1 question that I get from investors is “how is the market?” Here are 5 Points of Interest about the Philadelphia metro area and final August market statistics.
5 Points of Interest
- Baby Boomers are driving some of the low inventory. Many empty nesters (55 and older) who may have previously wanted to sell because they had “too much house” now are opting to stay put in greater numbers. This trend makes them more likely to hold out for a price that would allow them to buy a new house that meets their needs. Since home ownership among baby boomers is at 78%, this is a trend that we are watching. [Source: Realtor.com]
- The battle to woo Amazon to Philly has benefits for real estate investors. Dozens of cities across the country are courting the new Amazon headquarters including Philadelphia. The insiders say that the most viable sites locally are two sites in University City and one at the Navy Yard. What does this mean for local real estate investors? If Philly gets the bid, the metro area will have an influx of new residents who are going to need homes to buy or rent. If the city doesn’t, it will still have garnered new national attention which may support market appreciation.
- The demand for single-family rentals is still high. While there is speculation about relaxing some mortgage requirements, many consumers may still fall short. Also, 40% of families with children living at home are renters, which often means a three bedroom/one bath home. In the Philly metro, 14.9% of single-family home inventory are rentals (vs.19.2% nationally). It will continue to be a good time to be a landlord. [Source: Zillow]
- First-time home buyers are driving health of the market. Often investors overlook making their properties owner-occupant ready when it’s time to sell. According to a report by Genworth Mortgage Insurance, first-time home buyers account for 36% of the total home buyers (up two percentage points from the previous year). First-timers are often willing to put in a little sweat equity into a property in exchange for a reasonable sales price. These buyers will not float in low-ball offers as another investor would. The best way to reach these folks is with professional marketing using a realtor and syndicating the information about your property via the MLS.
- Chester Charter School of the Arts now has a new home. In 2015, the Chester Housing Authority sold the 11-acre site off of Rte 95 and Highland Avenue (previously the McCaffery Village housing development) for $2.5 million to The Chester Fund for Education and the Arts, which founded the K-12 school in 2012. The group used New Market Tax Credits from the state to partially fund the $25 million effort. Officials cut the ribbon on the new school on August 25. This project signals the feasibility of additional development opportunities through public-private partnerships for other developers in Chester.
August Key Market Statistics
(Statistics shown are for rolling 12 months)
(19143) West Philadelphia-Cobbs Creek/Cedar Park
| AUG 16 | AUG 17 | % CHG | |
|---|---|---|---|
| Total Sales | 402 | 411 | 2% |
| Lowest Sales | $10K | $11K | 13% |
| Highest Sales | $840K | $1545K | 84% |
| Average Sales | $139K | $139K | 0% |
| Days On Market | 52 | 45 | -13% |
(19104) West Philadelphia-University City/Mantua
| AUG 16 | AUG 17 | % CHG | |
|---|---|---|---|
| Total Sales | 136 | 146 | 24% |
| Lowest Sales | $14K | $13K | -7% |
| Highest Sales | $1,325K | $2,400K | 81% |
| Average Sales | $245K | $250K | 2% |
| Days On Market | 51 | 41 | -20% |
(19139) West Philadelphia-Walnut Hill/Haddington/Mill Creek
| AUG 16 | AUG 17 | % CHG | |
|---|---|---|---|
| Total Sales | 185 | 229 | 24% |
| Lowest Sales | $7K | $5K | -29% |
| Highest Sales | $775K | $607K | -22% |
| Average Sales | $82K | $93K | 13% |
| Days On Market | 69 | 50 | -28% |
Upper Darby
| AUG 16 | AUG 17 | % CHG | |
|---|---|---|---|
| Total Sales | 905 | 957 | 6% |
| Lowest Sales | $14K | $17K | 21% |
| Highest Sales | $425K | $415K | -2% |
| Average Sales | $120K | $129K | 7% |
| Days On Market | 80 | 69 | -14% |
Chester
| AUG 16 | AUG 17 | % CHG | |
|---|---|---|---|
| Total Sales | 116 | 146 | 100% |
| Lowest Sales | $4K | $5K | 43% |
| Highest Sales | $165K | $165K | 0% |
| Average Sales | $45K | $50K | 13% |
| Days On Market | 70 | 60 | -14% |
Want more insight?
Schedule a New Investor Discovery Call
Veronica comes from a family of real estate investors. She is passionate about helping clients create wealth, build a legacy, and design a dream lifestyle through real estate.
What makes Veronica stand out from other realtors is her financial background. With an MBA in Finance from The Wharton School and a bachelor’s degree in Economics from Northwestern University, she does not run from the numbers. She spent over a decade running financial models to help her employers evaluate projects and products. This skill allows her to simplify the bottom line for a homeowner or forecast the return on investment for a developer.
Veronica is a licensed realtor in PA. Veronica helps her clients buy, sell, invest in real estate in the following neighborhoods in the Philadelphia metro area: Cedar Park, Chester, Cobbs Creek, Darby, Drexel Hill, Germantown, Kingsessing, Lansdowne, Marcus Hook, Overbrook, Overbrook Farms, Sharon Hill, University City, Yeadon, and Upper Darby. Her company also provides property management services for single-family homes and small apartment buildings in the area.