There has been an enormous increase in the amount of shopping malls, store fronts, restaurants and housing developments throughout the Philadelphia area. However, despite this huge spike in growth, home values continue to plummet, causing people to lose a lot of money in the investment of their homes and businesses. The reality behind this severe plummet in property value comes down to the area and its decline in beauty and affordability. There has been a sudden increase in crime, making the area less-than-desirable when it comes to making it feel like home for a family.
You’ll notice in a recent consensus that, since 2010, there has been an annual population increase throughout the suburbs and city of Philadelphia itself. Despite the large amount of people living in Philadelphia, home values have gone down by 11 percent, making the average home worth only $215,000. This bust in the economy came about during the recent housing crisis that struck major cities like Philadelphia. Unfortunately, the city has not been able to recover from the crisis despite more people moving in.
This is causing a problem for the average suburban homeowner, who is now holding onto their current home for a longer period of time in hopes that they will one day be able to sell for a higher price. This is, in effect, causing a ripple throughout the housing and real estate market, which has resulted in fewer properties being put up for sale and a challenge for first-time Philadelphia buyers who cannot find affordable housing. Because of the insurgence of crime throughout Philadelphia, many people are also selling homes for lower prices and to the first person who is offering money, and most often, this is a landlord who will simply rent the house or apartment to anyone who pays them.
Many real estate professionals have speculated that the Philadelphia housing crisis will come to an end shortly, especially with the growth of many new housing developments and high-end stores that will hopefully improve the quality of the deteriorating city. In fact, some Philadelphia residents are being advised by their realtors to list their homes for the full asking market value despite the house not being worth that specific amount. While the property might sit on the market for longer than the homeowner wants, they will eventually get what they are asking for and can move to a different area.