We’ve been arguing for months that the Philadelphia market is stronger than the press makes you believe. We were able to prove it in our market report where prices held (and even went up in certain neighborhoods)…
So we were glad to see some good news come from people other than ourselves. TIME Magazine wrote a good article about how buyers can save money by buying now and Philadelphia Magazine reiterated all of the arguments we’ve been saying here and to our clients in their most recent issue.
Earlier this month we learned of some additional good news when USA Today published numbers on the economy. it showed that while many states are in recession, Pennsylvania and Philadelphia in particular are in full Expansion. Additionally, they reveal that state wide real estate is up 2.8%.
These are all good signs for real estate. A strong economy means more buyers, fewer foreclosures, and strong market pressure to drive real estate prices higher. Houses are staying on the market for less time. If you are looking to buy, take advantage of the low interest rates and buy now!
Yet another sign of the strength of Philadelphia and Philadelphia real estate. Developers just announced they will be creating a neighborhood changing boutique hotel smack in the middle of Center City at 12th and Chestnut. No doubt this will become the anchor that attracts high end retail, restaurants, and apartment developments. Expect neighboring property values to rise and look forward to a hipper future for Philly! Get the full scoop at The Illdelph.
I would like to introduce you to the American Commerce Center, the building that will mark the beginning of a new stage in Philadelphia’s real estate development. At over 1500 feet, this building at 18th and Arch will be one of the largest buildings in the world, dramatically change Philly’s skyline, and will attract thousands of high-paying jobs the city needs.
I’ll let you read the full details at Philly Sky Line, but let me just say this will be a big boost to the local economy and is a strong sign of the long term value of Philadelphia Real Estate.
I knew Philadelphia was lucky in avoiding much of the real estate melt down affecting other parts of the country. Our report shows how market remaining flat from 2006 to 2007 while other parts of the country showed huge declines. TIME Magazine just published an article that made us realize we’re doubly lucky: While we are avoiding the bubble we still get to benefit from the lower interest rates to combat it!
In “Ignore the Headlines” TIME Magazine shows how buyers can save money even if the market goes down due to historically low interest rates. What they say is:
Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.
Buying today will save you money on your monthly expense and give you some built in protection against market swings in the future. Given that Philadelphia is less likely to show declines in 2008 than the rest of the country, now is a great time to buy in Center City. So…
Contact a Philly Living agent to find your home today!
While the numbers were fairly flat for the year, looking at East vs West you begin to see how real estate prices changed at more of a neighborhood level. Center City East had a very strong year up over 7%.
You can download the stats for your neighborhood at http://www.phillyliving.com/report/
We are pleased to announce we just published our Main Line and Center City market reports for 2007. Go here to get them and learn how real estate is doing in your neighborhood.
Main Line and Center City both held their value despite weak national trends. Center City 2007 median price was $291,900 and the average was $251,025. Main Line median price was $393,000 for the year, and its average price $552,101!
Download the reports to see the price trends for the last 5 years and learn how the market is performing.
Top Center City Neighborhoods: East Falls and Bella Vista both increased more than 10%.
Top Main Line area: Radnor Township.
Our reports are the only ones that go down to the neighborhood level. Read them and learn what you need to know to be a smart buyer or seller.
Today we launched a new version of our website. It was designed to make it easier to search real estate and find your new home. We hope you like it! Please take a look and send us any thoughts or feedback you have about the new design. We can always be reached at dave (at) phillyliving (dot) com.
www.PhillyLiving.com
When the October report on New Construction came out the news reported that October was the worst month in 16 years for new construction. However buried in the report is some good news for Center City real estate — condo and apartment construction is up 44%!
Why is this important?
New construction rates is a good predictor of the health of the market. If developers feel the market will go up, they will put their money in the market and build. If they think the market is overvalued and will go down, new construction will decrease.
In Center City Philadelphia virtually all new construction in Center City is multi-family, so its the multi-family construction numbers that matter. And with an upward trend of 44% the long term trend looks good!
Don’t listen to the media. Center City real estate is much better than the rest of the country:
- Center City prices now are basically the same as they were in 2006
- The number of sales is lower than it used to be (down 25%) — but what is selling is selling fast (within historical averages)
- Prices in Center City East and the East Falls/Manayunk/Roxborough/Chestnut Hill areas are increasing 13% and 6% respectively since last year!
Get the full details by reading our quarterly market report which analyzes all sales in the Center City area.
Money magazine selected Philadelphia, specifically the neighborhood of Washington Square West, as the 14th best place to retire.
The magazine highlighted the historic feel, the proximity to healthcare, and the walk-ability of the neighborhood. We agree!
Currently there over 145 properties available in the Washington Square West area on our website. Check them out online or give us a call and we will help you with your search to find your perfect home.
(Thanks phillyblog.com).
