Posted by Jonathan J. Miller -Monday, November 15, 2010, 10:08 AM
This quarterly market report is provided by Dr. Kevin Gillen, an economist and Research Fellow at the University of Pennsylvania’s Institute for Urban Research. 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.
Kevin does a great job parsing out the market and it is a pleasure to share his results on Matrix …Jonathan Miller
From my own perspective, I’d summarize the Kevin’s insights as “It’s not always sunny in Philadelphia” and “people are honest when they blow red lights“. As much as I like Philly, it was not immune from the exodus of tax credit stimulus.
“Philadelphia House Values and Sales Drop Sharply in Q3…Price declines in Q3 erase the price gains from Q2″
The typical Philadelphia home fell in value by an average of 4.6% on a quality- and seasonally adjusted basis this past summer, according to the latest data from the City’s Recorder of Deeds. This most recent decline more than eliminates the gains from the previous quarter, in which prices rose 3.8% as homebuyers sought to take advantage of the Federal homebuyer tax credit before its expiration in June. With this most recent decrease, the average Philadelphia home has now fallen in value by a total of 11% since the bursting of the national housing bubble several years ago.
Check this out!