The Philadelphia real estate market is booming. 2019 is shaping up to be an incredible year for investors willing to take risks and perform due diligence concerning trends and raw data in the area. And all signs point towards a bevy of fruitful opportunities, even in places you may not expect.
It’s a dense and highly technical market, though. Without some guidance and industry knowledge, even a seasoned investor will struggle to find success. That’s what this guide is for–it will lead you towards a successful real estate venture by providing informed, actionable information. Without further delay, let’s get started.
Callowhill, Northern Liberties
This area will be a stellar place to start. It offers a balance between commercial and residential properties, as well as some appealing rental prospects. On top of that, it also boasts a history of consistency regarding its tendency to follow market forecasts and trends.
First, let’s take a look at the Callowhill area. It’s a great place for new investors to get their feet wet–homes sell quickly and frequently, and the area’s competition isn’t too tight when compared to its contemporaries. Properties tend to sell after only a month on the market and typically sell around the listing price. Both of these factors point towards the area being a wonderful way to generate a reliable income stream.
Next, there’s Northern Liberties. It’s slightly more competitive than Callowhill but no less packed with opportunities. The area is more affluent than most other places in Philadelphia–the average property sells for around $450,000. As a result, it’s a riskier endeavor than some others.
The greater risk also speaks to the potential for greater profits, however. Homes tend to sell a bit more slowly in Northern Liberties as well; around the sixty-day mark. Ultimately, it’s an investment prospect with the potential to deliver a huge return on investment for those with the temperament to see the venture through to the end.
Fishtown, East Kensington, Olde Richmond
The Fishtown area is on the rise–home prices have been rising steadily since the beginning of the year, and that isn’t poised to stop anytime soon. More specifically, the median home price has increased by 14% in the past year. On one hand, this rise might translate to a slower turnover. Conversely, it also means you can expect to see a substantial profit if you play your cards right.
East Kensington is a similarly appealing prospect. It has a broad range of both residential and commercial properties. Likewise, the number of renters in the area has been slowly rising in the past year. All in all, it’s absolutely worth your consideration.
Lastly, there’s Olde Richmond. This area isn’t as appealing as its contemporaries, where home prices have stagnated in the past year and its residents’ median income is noticeably lower as well. Additionally, the area is sorely lacking in strong commercial investment opportunities. We would recommend staying away from this area until trends move in a more positive direction.
Manayunk is one of the most appealing prospects on this list. The area excels in just about every area an investor could hope–median income, population density, renters, and crime rates are all excellent relative to other areas in the state.
One of the only criticisms one could fairly lay on the area is that its median sales price is much lower than in some other areas. At only $214,600, it leaves a lot to be desired. Fortunately, the area makes up for this modest figure with an extremely impressive turnover rate: you can expect to make a sale in Manayunk only two weeks following your initial listing. That’s a hugely impressive figure by any margin.
Another noteworthy fact is the area’s crime rate, which is far lower than almost every other area in Philadelphia. Similarly, the locale’s school district is bustling. That paints a picture of an area packed with high-income families, which speaks to a thriving local economy. In short, you should invest in the Manayunk area as soon as possible.