Philadelphia (Super-Seller’s Market)

Investor · Philadelphia, PA · Member since 2019 · 24 posts · 10 votes

So I’m watching money literally be DUMPED into Philly. A triplex I went to see last month has star-bolts through the face of it to prevent more structural issues, and the back of the property is MISSING... just sold for $100k. Seller’s agents have been saying New Yorkers are overpaying for everything because of Philly prices compared to NYC. Being a NYC-native and Union Ironworker, I can see that. Philly’s market is WAY over saturated, in my little opinion!

1 Reply

32 views

Most Popular Reply

David Vitarelli

Inspector · Voorhees, NJ · Member since 2015 · 104 posts · 47 votes

In my opinion, Philadelphia is positioned between NYC and Washington in a way that Philadelphia is the logical choice for those seeking shelter from an unsustainable increase in cost of living. Philadelphia is in the midst of a renaissance …There is considerable investment being made by Colleges and Hospitals as well as public funds that are being directed to vacant site revitalization, in addition to, under-utilized current development (like the proposed Penn's Landing project and Waterfront development).This investment in combination with the fact that Philadelphia has the highest poverty rate per capita versus any other major metro area, creates conditions that are ripe for development. There is a desperately low supply of affordable housing for the impoverished and an abundance of dilapidated houses and raw land that need to be developed. I personally see a continuation of current demand for a considerable amount of time, or at least, until current housing demands are met (which is likely to be many years even at a high development rate). To the point made in the thread above about the market being saturated, this is simply not true. The current supply of housing in Philadelphia is around 2.5 months....a balanced typically has between 5-6 months. There may be a shortage of Duplexes and Triplexes, but there is definitely opportunity for those that know where to look. Personally, I love this city and will continue to invest!

4 Reply

See this reply in the discussion

15 Replies

Jump to latestLatest

Sort by

Alex Uman
Investor · Montgomery County, PA · Member since 2020 · 255 posts · 238 votes
6y
Morning @Courtney Benson, it is definitely a seller's market here. New York money has definitely worked to pump the prices up in the area, especially for multis as they become harder and harder to find at good prices. My firm recently sold a triplex with structural damage in West Philly for $75k within an hour of putting it out for sale. I'll be interested to see how long this frantic market lasts or if it only continues as more New Yorkers move to Philly for lower costs of entry.
2 Reply
Courtney Benson
OP
Investor · Philadelphia, PA · Member since 2019 · 24 posts · 10 votes
6y
Hey, @Alex Uman. I have been wondering the same thing, as far as how long this will continue. N.Y. Went on for years. I’m thinking it will be the same in Philly. I’m getting the Episode 132, @Brie Schmidt fever. Considering a new market. She made a KILLING when she left Chicago and went to Milwaukee. Does your firm have any more listings like the one you just sold?
1 Reply
Alex Uman
Investor · Montgomery County, PA · Member since 2020 · 255 posts · 238 votes
6y
@Courtney Benson we consistently look for great listings like that... Definitely been tough in this market. I'll PM you. All the best!
0 Reply
Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
It's the same in Northern NJ and has been for a long time. Philly is getting hit even harder by NYC folks now because the deals are impossible to get in Northern NJ and the taxes are so high. I do think investors are buying too high in some parts of Philly, especially on properties discussed above, but I am still not sure it's a future loss, just not as high a profit margin long-term as they expect.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
1 Reply
David Vitarelli
Inspector · Voorhees, NJ · Member since 2015 · 104 posts · 47 votes
6y
In my opinion, Philadelphia is positioned between NYC and Washington in a way that Philadelphia is the logical choice for those seeking shelter from an unsustainable increase in cost of living. Philadelphia is in the midst of a renaissance …There is considerable investment being made by Colleges and Hospitals as well as public funds that are being directed to vacant site revitalization, in addition to, under-utilized current development (like the proposed Penn's Landing project and Waterfront development).This investment in combination with the fact that Philadelphia has the highest poverty rate per capita versus any other major metro area, creates conditions that are ripe for development. There is a desperately low supply of affordable housing for the impoverished and an abundance of dilapidated houses and raw land that need to be developed. I personally see a continuation of current demand for a considerable amount of time, or at least, until current housing demands are met (which is likely to be many years even at a high development rate). To the point made in the thread above about the market being saturated, this is simply not true. The current supply of housing in Philadelphia is around 2.5 months....a balanced typically has between 5-6 months. There may be a shortage of Duplexes and Triplexes, but there is definitely opportunity for those that know where to look. Personally, I love this city and will continue to invest!
4 Reply
Alex Uman
Investor · Montgomery County, PA · Member since 2020 · 255 posts · 238 votes
6y
@David Vitarelli, great input and I share your optimism on the city. Such development projects have helped and will continue to help the city to grow. Definitely the most logical location between NYC and DC for real estate investment.
1 Reply
Ryan D.
Developer · Philadelphia, PA · Member since 2018 · 100 posts · 81 votes
6y
I'd love to know what data you're seeing that says our market is over-saturated. "Investors" have been saying this since 2017 here. Look at the demographics and data to understand the noise. Lack of housing supply, credit profiles of buyers now compared to previous years, and the macro trends of the rise of the 2nd tier city in America all point me to wanting to continue to buy. WFH trends all bode incredibly well in Philly's favor with being wedged between DC & NYC. I own here so I'm biased but looking at the data tells me the party is just getting started.
2 Reply
Franky Aikens
Wholesaler · Philadelphia, PA · Member since 2016 · 124 posts · 81 votes
6y
As someone who just bought and completely renovating a primary residence in East Passyunk, this thread is making very happy. And yes, I'm moving in from NY. I'll be ready to purchase an investment property Philly within a years' time so who can tell me is the next area that would be ideal for buy and hold?
0 Reply
Brendan McAllister
Real Estate Agent · Philadelphia · Member since 2020 · 28 posts · 28 votes
6y
I would agree with @Ryan D., although it is a sellers market I don't think Philadelphia is over saturated in a general sense. Especially when compared to NYC, DC, and Boston, Philadelphia real estate is still very affordable. Some neighborhoods like Fishtown are over saturated, but overall you can still find great deals. When you are finding houses that have a spread that is less than 70%, then the market can't be over saturated. But as @David Vitarelli was saying, there is so much potential in this city. In the commercial and residential sense, we still are far from our peak performance. There are so many pockets in this city that are just primed to explode over the next couple years.
0 Reply
Junon Celestin
Investor · Philadelphia, PA · Member since 2017 · 64 posts · 22 votes
6y
@Courtney Benson well I would also say wholesaler took part of this. It worth it if you can find a cheap property fixed. Next let’s not for get the sheriff sales are helping this process . So why not . I got one property for 6k and sold it for 290k. Know Ohio is next .
0 Reply
Junon Celestin
Investor · Philadelphia, PA · Member since 2017 · 64 posts · 22 votes
6y
@Courtney Benson the dump is a money maker.
0 Reply
Junon Celestin
Investor · Philadelphia, PA · Member since 2017 · 64 posts · 22 votes
6y
@Franky Aikens Ohio is up next it check out
0 Reply
Junon Celestin
Investor · Philadelphia, PA · Member since 2017 · 64 posts · 22 votes
6y
@Brendan McAllister I would agree it depends were you look and how welll you know the city and demo graphics
0 Reply
Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
6y
@Courtney Benson
A triplex in a decent neighborhood for 100k sounds like a deal even if it needs a 30k rear wall.
0 Reply
Courtney Benson
OP
Investor · Philadelphia, PA · Member since 2019 · 24 posts · 10 votes
6y
@Max T. I’m with you! That WOULD be a deal!! Definitely needed more like $100k plus of rehab as well - moisture issues throughout, zoning wasn’t right.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.