Despite national downward trends, Center City Philadelphia real estate shows signs of renewed strength in Q2 according the analysis we just completed of real estate sales in the first two quarters of 2007.
For the last few months, we have been noticing that the market has been heating up, but even we were surprised when we took a look at June sales. The sales of Center City homes rose 12.6% last month. Additionally, the median price for homes is now $304,000, 10% more than a year ago. The median is the point where half the homes sold for more and half for less.
Nationally, the story is not as good. According to the National Association of Realtors, sales dropped of 3.8% while the median price increased only 0.3%. These national trends are driving much of the negative press about real estate.
Philadelphia inventory levels did match the rest of the nation. Both markets currently have 8.8 months of inventory for sale which is at record highs.
Why Philadelphia Is Different
Real estate is all about location, and quite frankly, our location in Center City Philadelphia, is good and getting even better.
The city is on an upward swing and the increasing quality of life ensures a growing demand for housing. Just last month, Forbes Magazine ranked Philadelphia the 9th Best City for Young Professionals, beating out Denver, Charlotte, Chicago, and San Diego. This fundamental strength is being recognized nationally and will continue to drive the real estate market.
The second factor helping Philadelphia is our low sub-prime mortgage default rate. Philadelphia’s default rate is within historical ranges, unlike some other parts of the country. As a result, there is less downward pressure on Center City Philadelphia market prices.
Buyers: Good Properties Are Selling Fast!
The number of properties for sale is at record highs but the good properties are selling fast! You should be watching the new listings carefully and be prepared to move quickly if you see something that is priced right.
Additionally, you may be able to find a bargain property that has been on the market for a long time. It is critical that you work with your agent to come up with a buying strategy that works for you.
Philly Living agents can help you find the perfect house. We are experts in the marketplace and can help you put together a buying strategy to find the home of your dreams for no cost. Contact us for a no obligation consultation.
Sellers: Pricing And Marketing Is Key!
Now more than ever, it is critical you set your home price correctly and work with an agent that will proactively sell your house. When the market was overheated, houses would sell themselves. In this market, your agent will need a selling strategy to ensure your house does not get lost in the 8.8 months of inventory. Your agent will need to work with you to price your home correctly AND develop a well thought out marketing campaign to find buyers. Done right, the numbers speak for themselves with housing sale up 12.6%.
At Philly Living we use a proven methodology to get your home seen by more buyers. Contact us to learn how.
[...] Two weeks ago we got some hard numbers when we crunched the Q2 results for all of Center City. We found that sales and prices up. (You can see the full Q2 report here.) If you have been waiting for the market to fall further it might be time to rethink that as it looks like the market hit bottom and prices are beginning to rise. [...]
Pingback by Philadelphia City Realty » More signs of a real estate turn around — August 27, 2007 @ 3:13 pm
[...] While we noticed it back in Q2, its good that the press is beginning to pick up on real estate recovery trend. The article “In the city, widespread increase in median price” notes that the median price for all of Philadelphia has gone from $130,000 to $145,000 and agents are noticing an increase in buyer activity. Of course the median prices in Center City are much higher (and increasing!!!). You can view all the details in our market report, an one-of-a-kind analysis of the Center City real estate market. [...]
Pingback by Philadelphia City Realty » Philly real estate rebounds, according to the Philadelphia Inquirer — September 23, 2007 @ 4:42 pm