The 2020 homebuying market was unlike anything we saw before. Prices were high, inventory was low, and buyers were competing to take advantage of incredibly low mortgage rates. For Philly residents who are largely unaffected by the pandemic, many chose to save on discretionary purchases but splurge on real estate. With consumers here and across the country saving more after COVID-19 deprived them of things to buy, many decided to splurge on real estate. And super-cheap debt made splurging easier.
As the Spring season nears, Philly is getting ready to see more unusual trends for buyers and sellers. Our team is expecting the spring market in Philadelphia to be busy and active, similar to how the market was in 2020. Buyer demand will remain high, and home inventory will remain low. When combined, these factors will drive the market forward through June. On top of this, low home loan rates will create a competitive real estate scene.
The first part of the Spring Market, February to June, will have around the same levels of demand as 2020. With both winter and COVID being the main driving factors behind low inventory, homes that are priced correctly are selling quickly, often after an intense bidding war. Our team expects to see this trend continue through these months.
One this has changed since the beginning of the pandemic, and that is buyers purchasing homes sight unseen. This means that some have used digital mediums, such as videos, virtual tours, or Facetime, as the driving factor behind their decision-making. This has emphasized the need for sellers to have incredible, comprehensive digital marketing strategies.
For buyers, they’ve had to adapt by differentiating themselves to improve their offer, whether that’s through price or terms of the agreement. Some of these terms are below:
- Being pre-approved for a mortgage
- Putting a larger deposit down on the property. Generally, 20% is standard, but the more the better in this market
- Closing on the date the seller chooses
- Adjusting the appraisal contingency by offering an appraisal “floor”
- If you don’t have to sell another property in order to buy the next/li>
A few other ways buyers can improve their offer is by modifying the appraisal and inspection contingencies or allowing the seller to stay in the property for a period of time after closing or extending the closing period. This may seem overwhelming to many, especially first-time home buyers. However, our agents can help you navigate these terms and deliver a competitive offer.
Have a property in mind or thinking about selling your home? Whether you have a home in mind and you don’t know how to get started, or if you’re thinking about selling reach out to our team. We’re ready to help you sell or secure your dream home.