The Philly Pretzel

Philadelphia Housing Recovery Sputters in Q3.

Mixed news on sales, prices.

The most recent home sales figures suggest a slowing in the momentum of the housing market’s attempt to recover from its current slump.

Following the first quarterly increase in citywide house prices after two years of falling prices, the typical Philadelphia home rose in value by a scant 0.2% on a quality—and seasonally—adjusted basis this past summer, according to the latest analysis by Econsult economist Kevin Gillen{pdf}. Following on the heels of a robust increase of 6.8% this past spring, Philadelphia house values seem to still be struggling to regain the value they lost over the past two years. With these losses in value netted against these two recent increases, the typical Philadelphia home has lost 8% of its value since the bursting of the national housing bubble over two years ago.

Download the report and Kevin’s commentary.

Price changes across the city’s neighborhoods were mixed, with increases in some neighborhoods being offset by decreases in others:

South Philadelphia +7.0%
West Philadelphia +6.4%
 University City +2.6%
Center City/Fairmount +0.7%
Lower Northeast Philadelphia +0.2%

 Northwest Philadelphia -4.4%
Kensington/Frankford -2.1%
Upper Northeast Philadelphia -0.7%
North Philadelphia -0.4%

Philadelphia remains in far better shape than most other major U.S. cities. According to Case-Shiller MacroMarkets’ composite house price index, house prices have fallen by an average of 32% in the ten largest U.S. cities since the bursting of the housing bubble, compared to only 8% in Philadelphia. Of the twenty largest cities in the U.S., all but one (Dallas) have experienced more severe house price declines than Philadelphia. And, according to the research firm IHS Global Insight, the typical Philadelphia home is now considered to be under-priced by 2%.

Also See: Philadelphia Housing Considered Under-Value 1st Time Since 2003

HAVE HOT NEW LISTING DELIVERED FRESH TO YOUR INBOX

Technorati: housing market, philly housing, buyers market, appreciation by neighborhood

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

«click on graph to make larger»

Confidence and Continued Demand for Center City Real Estate.

In a survey conducted by the Center City District (pdf) in July 2009 81% of Center City residents remain confident about the future of downtown Philadelphia.

** Despite the recession, Philadelphia has experienced a much lower decline in employment than either the region or the nation. Philadelphia has been buffered by the fact that 36% of the workforce is employed in educational and health care institutions.

** While Philadelphia is still losing population, Center City has been growing for over 40 years. Even as households have
gotten smaller, population density has been increasing. Since 2000, growth accelerated as seven out of eight downtown ZIP codes experienced an increase in population. Driven by the 10-year tax abatement that was approved in 1997, Center City has added 12,121 new units of housing.

** In the neighborhoods surrounding the central business district demand remains strong since none of these communities
are confronting a challenge of over-supply. Townhouses priced below $400,000, are selling well, as first time homebuyers,
prompted by the $8,000 federal tax credit, are connecting with willing sellers who have adjusted their prices downward.

**Center City Philadelphia has succeeded in attracting well educated, knowledge-workers — young professionals and empty-nesters — a key objective of development professionals in every American city. Twenty-eight percent of all respondents are ages 25 to 34, while 39% are over 55. Older, more affluent households are concentrated in the higher-priced housing in the core of downtown, with the largest proportion of individuals over 65 found in ZIP codes 19102, 19103 and 19107.

Like the national market, Center City housing production peaked in 2006 with almost 2,000 new units delivered to the market that year and then slowed in 2007 and 2008. The financial crisis of September 2008 caused production to plummet as financing for major for-sale projects almost completely dried up. Still, from Northern Liberties and Fairmount to the neighborhoods south of South Street, the construction of townhouses, rental units and high-rise buildings continue, albeit at a lower volume than in previous years.

HAVE HOT NEW LISTING DELIVERED FRESH TO YOUR INBOX

Technorati: center city real estate, philadelphia real estate, philadelphia housing market, home buyers, home sellers

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

Great news for Philadelphia home owners and anyone looking to buy Philadelphia Real Estate. A new report published by U.S. News and World picks Philadelphia as one of the “10 Cities primed for a Real Estate Recovery”. A sizable government sector has helped keep unemployment below the national average. Healthcare and education jobs also have helped offset cutbacks in finance, construction, and manufacturing. Those same sectors will help the economy recovery, possibly faster than the nation overall.

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT  

Technorati: Philly real estate, Philly market conditions, Philly real estate recovery, buy real estate in Philly

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

Philadelphia house prices increase, even as sales remain low.

The most recent home sales figures indicate some indicators of stabilization in Philadelphia’s slumping housing market acording to the latest analysis by Wharton economist Kevin Gillen.Dr.

 Kevin Gillen is an economist at the Real Estate Department of the Wharton School and Fellow of the University of Pennsylvania. He analyzes the Philadelphia real estate market using the city’s real estate database through Enconsult, an economics consulting firm based in Philadelphia. The results are published in a research paper called Philadelphia House Price Indices(PDF) each quarter as a public service to the Philadelphia real estate community.

After seven consecutive quarters of declining house prices, the typical Philadelphia home actually rose in value by an average of 6.8% on a quality- and seasonally- adjusted basis this past spring. This is a reversal from nearly two years of price declines. And, when added to previous price declines,Philadelphia house values are down cumulatively by 12% from the local market’s peak of two years ago.

Price changes across the city’s neighborhoods were almost all positive. From lowest to highest, the price changes by neighborhood are:

Center City/Fairmount (+0.9%)

Lower Northeast Philadelphia (+3.1%)

Upper Northeast Philadelphia (+3.8%)

Northwest Philadelphia (+5.8%)

South Philadelphia (6.9%)

North Philadelphia(+13.1%)

Kensington/Frankford (+14.0%)

University City (+17.1%)

West Philadelphia was the only neighborhood to experience a price decline (-1.1%).

With this price increase, Philadelphia has diverged sharply from the average house price decline for large U.S. cities. House prices have fallen by an average of 33% in the ten largest U.S. cities since the bursting ofthe housing bubble, compared to only 12% in Philadelphia. With the most recent price declines to date, Philadelphia’s housing is now actually considered to be under-valued. The typical Philadelphia home is under-valued by 3.2%. This is down from its peak of two years ago, when it was estimated to be over-valued by 16%, and the first time it has been considered under-valued since 2003.

FIND YOUR Under Valued PHILLY HOME

Technorati: Philadelphia real estate, market conditions, homes for sale

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!