To Buy or Rent in Uncertain Times: Considerations for Young Professionals
A Few of my Biggest Takeaways from the YPC Event — Anna Gibson,Senior Associate, Tax Services, RSM US LLP
It’s a Seller’s Market – This was stressed from all speakers throughout the event. Alexandra Lee, an economist from Zillow Group, stated that the “demand is there, as we are seeing extremely low inventory levels” and that “the pandemic has really accelerated everything in terms of home values in terms of sales.” Cecilia Snyder, a realtor from Keller Williams Philly, also mentioned that demand is strong in both urban and suburban areas, but especially in the suburbs. That being said, they believe that more sellers will enter the market post-COVID as they are waiting for improved economic conditions to make a move.
Rentals are down in Philadelphia – Zak Klinvex, VP of Investments from Post Brothers Apartments, mentioned that people, especially young professionals, are either buying houses or moving back with their parents to save money. Although the rental market has weakened, he is very confident that people will be back post-COVID because of the experiences the city has to offer. This especially applies to millennials and Gen Z as they like to spend money on experiences for their social media platforms.
Big Apple to the City of Brotherly Love – All speakers saw a trend of people moving from New York to Philly – whether buying or renting. Cecilia mentioned that New Yorkers are not ready to give up the city life and see Philly as a good alternative to get more bang for their buck. Zak even emphasized this point on the rental side when he mentioned that they’ve seen New Yorkers come down to Philadelphia and are blown away by the value. Alexandra stated that “more people are staying put compared to New York and about 1/3 of homes are selling above list price.” I was happy to hear that Philly is still an attractive place to live and enjoyed Cecilia’s comparison of Fishtown becoming the new Brooklyn. Who doesn’t like a good bagel and trendy cup of coffee?
Tips to Consider as a First-Time Homebuyer – Cecilia gave the audience some great starting points. To begin, she recommends “talking to a lender, seeing what you can afford, and then we can start looking based on that.” Another helpful tip is to utilize your agent if you need recommendations for lenders. Next, it is important to consider your timeline. Ask yourself: “Am I looking for a place suitable for the next 2 or 5 or 10 years? What point am I at in life, both personally and professionally?” Last, don’t forget to do your research beforehand so you have ideas of what you like and what you will believe will suit your current and future lifestyle.
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