Prices hold steady, sales activity exhibits unusual increase.
The most recent home sales data indicate a solidifying of the local housing market’s condition after several years of both declining sales and prices.
After two years of falling prices, prices held steady for the third consecutive quarter in 2009 Q4. The typical Philadelphia home rose in value by 0.5% on a quality- and seasonally- adjusted basis this past fall, according to the latest analysis by Econsult economist Kevin Gillen [pdf]. From the housing market’s peak in 2006 to the recent trough of last winter, the average Philadelphia home had fallen in value by a total of 10.5%. But with the market’s apparent stabilization in the latter part of 2009, the average Philadelphia home has recovered 3.5% of its lost value, thereby reducing its total loss to only 7% since the bursting of the national housing bubble several years ago.
Price changes across the city’s neighborhoods were essentially flat, with slight increases in some neighborhoods being offset by slight decreases in others.
Center City / Fairmount +1.6%
West Philadelphia +1.5%
Lower Northeast Philadelphia +1.2%
Upper Northeast Philadelphia +0.8%
University City -13.1%
South Philadelphia -0.6%
Kensington / Frankford -0.4%
Northwest Philadelphia -0.1%
Philadelphia’s housing market continues to significantly outperform other major U.S. cities during the current economic downturn.
According to Case-Shiller MacroMarkets’ composite house price index, house prices have fallen by an average of 30% in the ten largest U.S. cities since the bursting of the housing bubble, compared to only 7% in Philadelphia. Of the twenty largest cities in the U.S., all but one (Dallas) have experienced more severe house price declines than Philadelphia.