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 Hallwatch, a watchdog group. The 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].
The report is always informative and I am glad I am able to present his efforts on Matrix -Jonathan Miller
Download the full report [pdf].
Read the Hallwatch article on the market: Philadelphia Experiences First Citywide Drop in House Values Since 2002
The Philadelphia real estate market is showing weaker appre, but a lower level of sales activity. Here’s a few salient points made by Kevin:
- Just under 6,000 homes changed hands during the third quarter—the fewest sales since 2003 Q3.
- With sales volume slumping, the number of homes lingering “for sale” on the market continued to climb, to nearly 12,000 units—more than double the amount listed in 2004.
- With the fallout from subprime and the tightening of mortgage credit, foreclosures rose in the third quarter to just over 900 homes—about fifty percent higher than in 2005. (link to slide 35)
- And, for the first time since 2002 Q3, house prices declined citywide on a quality- and seasonally-adjusted basis—about minus 1.1%
More discussion concerning the report [Hallwatch.org]. Hallwatch is a private and independently maintained watchdog website that does a lot of in-depth, independent and investigative pieces on city politics, as well as real estate.
Could the decline in sales have anything to do with the rising murder rate in Philly?..