Home Buying in 19136>Question Details

John Bianchi…, Real Estate Pro in Philadelphia, PA

Is now a good time to buy real estate in Philadelphia?

Asked by John Bianchimano, Philadelphia, PA Thu Feb 14, 2008

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Now is a great time to buy and trade up! People have to look at the big picture when it comes to trading up. Ok, you may not get the windfall of cash you would like for the house you are selling, but if you have equity in your current house that you can use as a down payment on a bigger house and you need a bigger house, you would be crazy not to upgrade now. Waiting will only cost you more in the long term. Think about it.
Consider the "Loss" on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.
Consider Your Real Profit
Now, consider this. Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you?
Consider the "Savings" on Buying Your New Home
If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000. So you "lost" $30,000 on the sale of your home. But you "made" $50,000 on the purchase of your new home. Doesn't that put you $20,000 ahead?
Don't Forget the Impact of Interest Rates--Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
• Each 1/2 point decrease in your interest rate gives you $25,000 more in purchasing power.
• Each 1 point decrease in your interest rate gives you $50,000 more in purchasing power.
• Each 2 point decrease in your interest rate gives you $100,000 more in purchasing power

You can get real estate in nice areas for prices that we haven’t seen in a decade. So what if you take a little less for your current house. In 3-5 years when the market has fully rebounded you’ll have twice as much equity in the new house as you would ever have been able to build in the old house
2 votes Thank Flag Link Mon Mar 10, 2008
Dear Blindhero-
Simply put it is the best time to buy a house anywhere, period! All the turmoil in Greece has caused foreign investors to invest in the US, causing mortgages rates to dip even lower. The inventory in Philadelphia is at an all time high which equals a BUYERS market. Buying now could save you hundreds off your monthly mortgage and tens of thousands off the entire mortgaged price of your home. As always feel free to use my website with a free up to the minute home search and the free e Book "Buyers Secrets". Use the link below. Contact me directly if I maybe of any more assistance.
Happy House Hunting!

Robert A. Martini
REALTOR®, e-PRO®
Keller Williams Real Estate
Philadelphia PA
215.605.5497
0 votes Thank Flag Link Tue May 25, 2010
I have been purchasing investment properties as well as our clients. I think it is a great time to buy . As a purchaser, you have so much more leverage in terms of negotiating price and repairs now than ever. That is not going to last for an indefinite period of time. Overall, all market has held up very well and I anticipate those buying real estate today will be well rewarded in the future. Good luck !
0 votes Thank Flag Link Thu Feb 14, 2008
If you are only purchasing, then it should be a great time to buy. I would say through the rest of the year and into spring of next year. Adjustable rate loans will still be resetting in that time frame, causing even more homes to go into foreclosure.

If you are also selling, then anytime would be good. There's no advantage or disadvantage to selling one property and buying another similar property elsewhere. If your home is worth a lot, so will the property you buying, and if it is worth less, so will the new one be.

I hope that helps.

Terrence Charest, e-Pro
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
267.614.1494
0 votes Thank Flag Link Thu Feb 14, 2008
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