Philly Rental prices increase

Philly rental prices have increased here and there. As of late, with mortgage underwriting guidelines tight and home prices rising many consumers have taken to renting even though we are still at historically low mortgage rate levels. Whether consumers are running into issues getting approved for a mortgage, don't have funds for down payment or just can't find the right home...there are a number of reasons that monthly rentals are on the rise in the Philadelphia area. Of course, this is good news for investors who own the homes. Not so good news for those living in the units. Overall, the median rent list price settled near even, year over year, for Philadelphia as a whole at $1200/month. But areas such as South Philadelphia saw a rise as much as 25% over the course of the year. Other areas like Richmond, East Mount Airy and Germantown also saw sharp Y o Y increases. Those were 15%, 14% and 10% respectively, according to Zillow.com. SOME THINGS TO KEEP IN MIND: Spring is near and we should see a flood of inventory hit the streets as far as available homes for sale. This could put a little downward pressure on home prices and make bargaining a little easier for buyers. Simple supply and demand. From a sellers perspective, they will be expecting more traffic as folks begin their home search and may just wait for that perfect selling price they were hoping for. There are always two sides to a story. No matter what occurs, you will want to be prepared. Learn the lingo of mortgages and real estate. Do your homework. Getting pre-approved is a must before shopping for homes. This way you are not searching for homes out of your budget, which prevents a major let down if you find your dream home but later find out you can't afford it. In the meantime, SAVE, SAVE and SAVE some more. If you can put 20% down, do it. Either way, I'm available to show you alternative ways to finance a home. Happy hunting!! If you have questions on why Philly rental prices increase, please visit www.phillyfinance.com