The Philadelphia area is showing more stability than most other markets, even though we are undeniably in the midst of a correction. Only 0.33% of all Philadelphia-area households—about one in every 303 households—are in the process of being foreclosed upon. This is well below the foreclosure rate in places like Las Vegas (3.5%), Southern California (3.1%) or Phoenix (2.1%).
What’s more, just 4.4% of Philadelphia homes bought in the last five years were considered “under water” – meaning that more is owed on them then they could bring if they were sold today. With negative equity much lower than the rest of the country, indicating that the area’s value declines may stay relatively small. And Philly has a healthy five-year annualized appreciation of 6% compared with 3.4% nationally.