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Is It Possible to Time the Philadelphia Housing Market?

Is It Possible to Time the Philadelphia Housing Market?

No one wants to pay top dollar for their home when there’s talk of a housing bubble about to burst. It makes people sit on the sidelines and wait to buy a home because of the risk of overpaying. The thinking is, and you’re probably one of them when you hear this kind of news, is that it’s better to wait out the bubble and buy on the dip. This is a great strategy for the stock market, but it doesn’t work as well for buying a home. A home is a long-term investment, true, but it’s also the place you live. Taking the time to talk with a Philadelphia mortgage broker about the market can help you make an informed decision on buying. It’s far more important to be satisfied with your living situation than it is to worry about its value in the short term.

Why You Shouldn’t Try to Time the Philadelphia Housing Market

Home prices are driven by local economic factors, not national ones. While the national news channels may be talking about a bubble, that doesn’t mean homes in Philadelphia are in a bubble. Many factors are involved in the price of a home including location, type of property, the condition of the home, and sale prices of comparable homes in the vicinity. All of these factors can keep a home’s value high no matter what’s going on in the overall market. Housing values can drop in other parts of the country, but not in Philadelphia. You could wait years for the price to drop on a home that fits your criteria if it ever does. It’s far better to buy the house you like when you find it even though it may seem like the price is high.

Buying Instead of Waiting

If you feel that you’re going to put down roots, raise a family, and send the kids to school, you need stability now, not later. A home gives you the ultimate in stability in that you have a fixed place to live, you’re not dealing with the risk of increasing rent prices, and you build equity over time. That equity is something you can tap into to help pay for home repairs or cover an unexpected emergency. Staying in your home for the long term also means the house increases in value over time and you’ll weather dips in the market easily. Balance that against the fact that rent is not a static cost like a mortgage and people sometimes wind up paying more in rent than they would for a mortgage.

Addressing Affordability

You may be surprised to learn you can afford the monthly cost of a mortgage even if you don’t have a sizable down payment. There are many mortgage products on the market that can help you get into a home without the need for a large amount of cash up front. This is something a Philadelphia mortgage broker can assist you with as a broker has intimate knowledge of the types of mortgages that are available and finding something that suits your needs.

Why work with a Philadelphia mortgage broker instead of a bank? A broker is more invested in getting a mortgage approved and funded than a bank. And a broker has access to a variety of funding sources that a bank. Banks are typically limited in the type of mortgages they offer due to the fact they are what’s known as a direct lender. And they are far more likely to turn you down for the mortgage if you don’t fit their underwriting criteria. A mortgage broker isn’t limited to one or two types of mortgages; instead, they can go to multiple lenders who offer different mortgage products on your behalf and present you with multiple options for you to choose from.

Buying is always better than renting if you find that you want to stay put for the long term. Waiting for a theoretical bubble to pop can mean waiting years to buy, years you could be putting money towards a mortgage.

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