Younger homebuyers may fuel housing recovery in 2012
The stabilization of real estate in Philadelphia, PA, may be driven by younger homebuyers in 2012. Real estate experts and economists have noticed a trend of teens or 20-somethings moving in with roommates and creating new households. Historically, this household formation trend would drive demand - sometimes significantly - for instance, when the baby-boom generation needed homes of its own.
The national vacancy rate fell to 4.9 percent, and real estate observers believe the decline could be a result of younger Americans moving out on their own. However, houses in the City of Brotherly Love are depressed in value and purchasing properties is more feasible and affordable than ever. It may be wise for some of the more financially stable 20-somethings to consider purchasing property while prices are low, rather than submitting monthly payments to landlords in the area.
Many first-time buyers are cautious about entering the market in such unpredictable times and they may look for guidance from leading real estate experts. Unfortunately, most professionals, including Robbie Mahallati, a licensed Philadelphia real estate specialist, says it's difficult to predict the future in today's marketplace.
"Spending a lot of time trying to peer into the crystal ball is a mistake for most homebuyers and sellers," he continues, "It's more important to take stock of where you are in your life and what's going to make you happy - and that means owning instead of renting."
Investing in property can result in a boost of confidence and marks a significant transition in a first-time homebuyer's life. Traditionally, depressed markets are when many Americans begin looking for homes, and in Philadelphia, finding great deals on a wide array of properties is easy to manage in today's fluctuating housing landscape.
It's also interesting to note that Philadelphia has fared well compared to many other metropolitan areas in the United States. In fact, average home values and home sales have all increased in 2012, while available properties have fallen, which may indicate the area's housing market will continue to find a firm foundation as it enters the spring buying and selling season. Warmer weather often encourages numerous real estate transactions, so getting a head start and looking for property now may be worthwhile for first-time buyers.