Posted 6 months ago

The Best Time to Invest in Philadelphia

The most common response I hear from investors when I ask them what they are looking for is “I’ll buy if the numbers work”. Absolutely, the numbers are extremely important when deciding if an investment property is right for you but a very overlooked ingredient to the right investment is timing.

Myself and other wholesalers in the city will follow general guidelines when listing deals whether it be selling at a certain percent of ARV or a following a certain trend in the area. What is important is these numbers won't change by month but rather by the overall market.

This creates a great opportunity for investors to capitalize on overall market trends. Buying properties in the winter months and selling in the spring has historically shown the greatest return on investments in Philadelphia. Check out this quick breakdown of the overall sales trends for homes in Philadelphia from 2017

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Listing a property in the spring months, March to May, shows about a $2,000 increase in sales prices while listing in December leads to $3,600 less profit. Along with this, properties that are listed in April or May are selling, on average, 9.8 days faster than properties listed outside of these months. This research was also extended to show that 16.7% of properties sold in September went for over asking price, this number drops to 14.2% in June, and down again to just 10.3% by December.

These numbers allow an investor to capitalize on moving a property quicker and at a higher price just by buying at the right time. While the time of year you buy your investment may not seem to matter the time you list absolutely does. By buying a home between late October to early January you are allowing yourself to list at a time when buyers are eager to get into their new home and they’re willing to pay more and move faster.

In December of 2017 properties were sold on the MLS in Philadelphia for with an average of 111 days on market. While in March, April, and May properties sold in 93, 91, and 88 days on market respectively. Last year Philadelphia even saw its lowest days on market and its highest average sales price in June.

In the investment game, every second and every penny counts, making sure that you are making the smartest investment possible requires factoring in all facets about the market. Buying in the holiday month puts you in a position to boost your profit and shorten your timeline. 

Comments (2)

  1. @Sam Flannery , in your opinion would this indicate a better time to continue flipping since it is hitting the peak of a sellers market or should I start looking for BRRR???

    1. It depends on your long-term goals but I would absolutely recommend buying houses in December and February with plans to flip. While every investment can be a risk listing in the spring is going to give you a better safety net.