Main Line Real Estate News
Is Main Line real estate market getting hot again?
Clearly Main Line’s real estate market has recovered from the 2012 bottom. Buyers are back, prices are going up for the most part, and inventory is down. But it is a very different market today than it was back in 2006.
Today’s Main Line market is different also because Philadelphia has changed. Philadelphia’s revival has both created competition and benefited Main Line. Philadelphia is now more than ever an attractive place to live and remains very affordable from a big city standard. While the 5th largest, it is only the 10th most expensive city in the US. Over the last 5 years Philadelphia has become a destination for millennial generation in search for an affordable place to live, proximity to good job and a city with high walkability score. Philadelphia also offers them the opportunity for significant price appreciation and attractive 10 year tax abatement on new construction.
While creating some level of competition Philadelphia’s revival is good news for the Main Line. As the population in Philadelphia grows, demand for suburban housing in close proximity increases. Additionally, the quality of the public school in Philadelphia remains a major issue, and many families look for larger suburban living with good schools. With affluent and sophisticated living, outstanding education and proximity to economic and political centers, makes the Main Line one of the best suburb in the nation and a favorite destination. I would expect this trend to intensify as millennial generation age.
As life style changes, expectation from housing evolves. Fueled by home décor and rehab reality shows, today’s buyers are increasingly looking from the newest trend in layout and décor. Open floor plan, bright and neutral colors are thought after. Prices of well appointed homes tend to appreciate at above market average. Meanwhile homes with functional and aesthetic obsolescence see usually price stagnation and potentially price decrease.
Prices for entry level properties, prices below $500K have increased the most on the Main Line since the housing bottom of 2012. This is driven by first time home buyers and affordability. Quality inventory remains low, and well appointed homes tend to sell very quickly.
The middle market, properties priced between $700K and $1.4M remains very solid, especially for updated properties offering updated living spaces and premium location.
However, the market for properties over $2M remains weak, and price continues to decrease for some properties due to limited demand and changing needs. The time for exuberance seems to have cooled off, leaving priority to more refined, sophisticated and smaller properties closer to urban centers.
With affluent and sophisticated living, outstanding education and proximity to economic and political centers, while only a short drive to summer and winter sports, makes Main Line one of the best suburb in the nation to raise a family. I would expect Main Line Real Estate price to continue to appreciate at moderate pace.
By Remy De Vlieghere. www.MainLine-Properties.com