Both Philadelphia and Montgomery County have been named two of the most resilient markets in real estate.
According to Redfin, if the U.S. were to face a recession, these two areas have the second and third lowest risk score, behind only Akron, OH. Home prices in both Philadelphia and Montgomery County have grown more slowly than the national median, making them more affordable alternatives.
“Because of Philadelphia’s history, museums, ports, diverse population and diverse economy, we attract buyers and businesses from many different pipelines,” said 2020 PAR President Bill Festa. “I’ve always contended that Philadelphia has been the best kept secret. Even though prices have increased over the years, because of where Philadelphia is located in the northeast corridor between expensive New York City and Washington, DC, it has always been a less expensive market than most major cities and surrounding suburbs. In every downturn market that I’ve been through, Philly has continued to be a good alternative market because with lower prices, higher interest rates can still make a building or home affordable.”
In Philadelphia, the average home-loan-to-value ratio is 86%, while it is 83% in Montgomery County. Home prices grew only 10.1% year over year in Philadelphia and 11% in Montgomery County.
“Montgomery County is a really stable collar county around the city of Philadelphia,” said PAR President Christopher Beadling. “Most people who live in Montgomery County are doing so because it is convenient to their job, they appreciate the schools and they like the quality-of-life features that have been created to make their communities fun and safe,” he said.
“It is rare, in most parts of the county, anyway, to see people who are buying homes here with a short-term horizon,” he added. “Most are putting down roots and will only move when their situation leads them to need more or less space. Even then, most of the Montgomery County homeowners are looking for something nearby that meets their new needs.”