Philadelphia housing market perks up

Looks like the Philadelphia housing market is finally on the rebound.

For the first time in two years, home sales in the Philly area are recording double-digit growth, according to data released by local Realtors tracking the industry.

With interest rates that are ideal for first time home buyers and plenty of great deals available, home sales in Philadelphia are up 14 percent for 2012, compared to the same time span in 2011. Homes are now staying on the market for shorter durations of time before moving onto the “in escrow” or “sold” lists, a key indicator that the real estate market is picking up.

This is good news for Philadelphia apartment renters, because it indicates flexibility in the housing market that could favorably impact apartment rents.

With some apartment renters realizing that they can carry a mortgage for close to the same price of their rented apartment, apartment availability in Philadelphia could soon be on the upswing. That means rents should be stabilizing, or even headed for slight decreases sometime next year.

Philadelphia has seen a steady uptick in apartment rents for the last two years, and the demand for apartments has been strong, especially in the city’s most popular neighborhoods like Center City. That demand has led to major development of new apartment communities, most of which are not yet ready for occupancy.  These new apartment units coming online in 2013 will also have a positive impact on the city’s rental market.

What are your intentions as a Philadelphia apartment renter? Do you plan to keep renting, or consider this the right opportunity to enter the home buying ranks?