From the looks of things, Punxsutawney Phil was right — spring has definitely come early this year. The whirlwind of this early spring market has taught us a few things. As we head into March and the traditional spring market hits, here’s what to keep in mind during your home transition:
Buyers
Bidding wars are imminent
With inventory at an all-time low, a dip in home building, and continued population and migrant growth the buyers are more competitive than ever. When you’ve found a home you want to move one, move quickly. The market is leaving little room to weigh the pros and cons, which makes it important to know what you’re looking for.
Don’t get too attached
Due to this high competition be careful not to get too attached. With bidding wars, prices can climb quickly making your dream home simply out of reach. Be prepared to make offers on a few different houses and anticipate the shock of getting beat by aggressive buyers.
Know the tax abatement changes
If you’re leaning towards purchasing a new construction home, be wary of the latest change to the long standing tax abatement policy. Heading into effect next year the abatement for new construction homes will begin at 100% in the first year and reduce by 10% each year after. This is important to keep in mind when putting in an offer.
Bridge the gap
If you do come in contact with that perfect home but need to sell your home first now there is no need to wait. The Compass Bridge Loan Program will front 6 months of your loan payments allowing you the freedom of no out of pocket costs for the first six months during your home transition.
Sellers
Invest in the pre-market prep
There’s no doubt that the market is hot and inventory is moving fast, however buyers are still picky when it comes to making that final decision. We’ve said it before and we stand by it – invest in the pre-market prep. Giving your home a little aesthetic love will go a long way.
The ball is in your court
One thing is certain, we’re definitely in a seller’s market. The median cost for a home in Philadelphia currently sits at $225,000 and the median list price per square foot is $180 and prices are projected to rise 4.1% in the next year, Zillow predicts. Despite this we are still sitting pretty in terms of affordability compared to our east coast metro area neighbors DC ($619,900) and NYC ($900,000).
