Q: I have just moved to Somerton, and with the recent crimes in the Far Northeast I am starting to wonder if I’ve made a bad decision. I worry about the future value of my home. Can you reassure me?
A: No. People in all different neighborhoods, in different cities and towns all over the country, worry about how local crime will affect them. And unfortunately crime does affect home values. Why wouldn’t it?
The latest deals are mostly due to the current economic and job situation in the area. Homes are selling very slowly in Somerton right now. There is nine months worth of inventory, which indicates it’s still very much a buyer’s market, which generally induces lower home prices.
If you’ve moved into Somerton recently, then you’ve probably benefited from the drop in home values by paying at least 3 percent less for the home you now live in, at a much lower interest rate, than it would have cost in 2005.
The truth is, if you plan on staying in the Far Northeast for the long haul, values will likely rise and fall repeatedly over the decades and the reasons will vary. Will crime be one reason? Who knows? As far as the future goes, the only thing I can absolutely assure you of is that no one can predict it.
Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.