June 15, 2021
Real Estate Trends: Will You Be Able to Move this Year?
Whether it be buying a home in Northeastern Pennsylvania or finding a new space for your business, good Pennsylvania real estate is hard to come by. It’s going to be even harder for the rest of 2021 and 2022 if recent statistics and real estate trends are anything to go by. Currently, housing inventory, or the property left to sell/lease, has decreased by 39%.
That means there’s less space to go around. Demand hasn’t gone down between families looking for new places to live, and businesses looking to change locations either. The basics of economics should be setting off red flags for anyone planning a move sometime this year. There are several things people should look out for when looking into real estate.
What Does This Mean for New & Future Homeowners?
For aspiring homeowners currently looking throughout NEPA for a new home, there are a few things to consider.
- Competition: You’re far from the only one looking for a new place to call home. The lack of inventory will lead to many other people looking at the same homes that you are. Don’t expect your future neighbors at open houses and tours, they will likely look to send higher offers to realtors to get their dream home before you.
- Rise in price: The basic rule of economics is that when inventory is low and demand is high, businesses raise prices. Realtors will need to raise prices to make up for the missing pieces of property they’re not selling. So even before the bidding wars start, there will be a steep asking price upfront.
- Rise in value: One positive is that you may see the property you’re moving out of rise in value because of the current real estate market. If you’re currently living on a property you own and need to sell, you can ask for more money than you normally would.
- Lack of dream homes: A smaller quantity of homes for sale also means a smaller quantity of quality homes. You may find that your perfect dream home is not up for sale yet.
With all of this in mind, you need to make sure you’re not taken advantage of when any of the agreements come around. Both as a seller and/or buyer, you need an attorney who can guide you through the verbiage in purchase and sale agreements, title insurance, and more. Luckily, we can serve to represent you as a seller or buyer.
What Does This Mean for New & Future Business Owners?
Businesses have similar but different problems compared to homeowners. Many businesses don’t outright own the building they’re running out of. This is especially true for businesses in popular strip malls and office buildings. You should expect to experience a different set of changes in the market from people looking for new homes.
- Competition: Competing for leases isn’t altogether the same as competing to buy a home. You’re not only going to be simply outbid, but another business may prove that they can pay the monthly rent more reliably than your business can.
- Fewer suitable locations: Your business is growing, which is why you need a new location, but with fewer locations on the market, there may not be one suitable for your business’s size. The situation gets worse if your business will require remodeling or particular features, such as new appliances for a restaurant.
- Rise in price: Any landlord can look at the suffering market and decide to take advantage of it. They may raise the rent on you or try to change the next lease to benefit them rather than you. This may make it difficult not only for finding a new suitable location but keeping the one you’re still in.
Having a place of business is important for its ability to thrive and succeed. Having a place that doesn’t cost your business more than you can afford is therefore equally as important. It’s important to have someone review each and every contract you sign so you know you’re as well protected as possible. Good thing, we have commercial real estate lawyers who can help you.
How Can Our Real Estate Lawyers Help?
Outside of our lengthy and varied experience in real estate both for homeowners and commercial businesses, we’re here to put you first. Real estate is always an important step in furthering your life, whether that be your personal or professional life.
If you live in Northeastern Pennsylvania and are currently looking or planning to start looking for a new place to live or work, put your trust in Mazzoni Karam Petorak & Valvano today. Don’t let desperation leave you vulnerable to shady tactics and contracts, contact us.