Posted by Jonathan J. Miller -Monday, April 27, 2009, 11:31 AM
This quarterly market report is provided by Dr. Kevin Gillen, 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 Econsult, an economics consulting firm based in Philadelphia PA that provides statistical & econometric analysis in support of litigation as well as business and public policy decision-makers. His results are published in a research paper called Philadelphia House Price Indices each quarter as a public service to the Philadelphia real estate community. Here’s his methodology [pdf].
Kevin does a great job parsing out the market and it is a pleasure to share his results on Matrix â€”Jonathan Miller
According to the latest analysis by Wharton and Econsult economist Kevin Gillen, the typical Philadelphia home fell in value by an average of 8.4% on a quality- and seasonally- adjusted basis this past winter. This is an accelerated rate of decline from previous quarters. And, when added to previous price declines, Philadelphia house values are down cumulatively by 17.1% from the local marketâ€™s peak of nearly two years ago.
- Price changes across the cityâ€™s neighborhoods were uniformly negative, with no areas exhibiting any price appreciation.
- According to the data, 2,530 homes transacted under arms-length conditions this past winter; an all-time low.
- …it still seems to out-perform its peers in its relatively low foreclosure rate.
- Philadelphiaâ€™s housing is now actually considered to be under-valued.