I read the newspapers, listen to the news and hear the following from many of my clients and friends: "I'm not sure this is the best time to buy. I've heard prices may get lower." People are scared from all the national media attention.
Let me first say this, real estate is local. Yes, there are many markets in our country where prices are down, even dramatically so. Fortunately, this is not the case in the greater Philadelphia real estate market. Locally,in 2007 we saw, on average, a 2.9% increase in the average sales price. This is good news both for buyers and sellers. Our market did not see the rapid escalation in prices over the past few years like many other areas of the country, such as, Miami, Phoenix, Las Vegas and San Diego; but, locally home prices have increased 29% in the past five years. Therefore we are not experiencing the extreme market correction as those markets are. The greater Philadelphia market remains strong.
Now for buyers, is it a good time to buy? The answer is yes! We now have a wonderful selection of available homes. Interest rates remain at historic lows. We are currently experiencing a buyer's market. How long will these conditions last? Those who wait for the bottom of any market usually miss it on the way up!