Even if you weren’t selling or buying in the last few years, you probably heard that the economy wasn’t doing so well and the housing market was struggling. Things have picked up—and, as Mike says, “The market is the best I’ve seen since 2006-2007!” (and it really is awesome!) but, you may ask, how long will it stay great?
Well, the Central Philadelphia Development Corporation and Center City District have released their March 2014 report and the news is good! We’ve put together a highlight reel for you. To read the whole report, click here:
The market is growing.
- In 2010, Center City had just 300 units of housing between Girard Ave. and Tasker St. and there are now more than 2,000 units completed.
Demand and prices for home sales have increased.
- Overall sales, the speed of transactions and prices of seller’s homes increased throughout Center City in 2013.
- The average number of days properties remained on the market decreased by 20.9% in the heart of Center City and by 15.8% in extended neighborhoods.
- Sales prices throughout the expanded downtown increased by 3.7% over 2012, averaging $563,904 in the core and $340,632 in the extended neighborhoods.
2013 was a record year for new construction!
- New apartments command the landscape in the core of Philadelphia, accounting for 89% of construction between Vine and South Streets.
- Between 2000 and 2013, the number of major residential condominium buildings in the Center City District increased from 1 building with over 500 units to 49 buildings with 4,028 units.
- Although people have worried that this speedy growth was too quick, of the total 4,028 condominium units, only 458 remain with the developer’s, and most of those have been rented!
- More than 1,700 units of multifamily housing were completed between Girard Ave. and Tasker St, the largest number of multifamily units completed downtown since 1998
- Even with rising supply noted above, home prices ROSE 3.7% between 2012 and 2013.
So are we growing too quickly for the demand? It seems pretty clear that the answer to that is a solid no:
- Integra Realty Resources puts the overall apartment vacancy rate in Philadelphia at 3.7%, which is below the national average of 4.5%
- They also placed Philadelphia in 2013 in the upper end of the Expansion phase, with cities like Austin, Boston, Chicago, San Francisco and New York.
- Approximately 180,000 people currently live in Greater Center City, which makes Philadelphia second, behind only Manhattan nationally, in terms of the number of people living within a mile of the city’s primary business district.
- Between 2000 and 2010, Center City’s population increased by 19,465–13.3%
- And the population is not just people who work in the city, although being able to walk to work is a big benefit especially in such a walkable city, but 19,462 workers in Greater Center City commute outside of the city to work.
- Greater Center City is home to more than twice the national average of 25-34 year olds–and many want to stay in the city as long as they have job security!
- Overall, Center City residents have income levels that allow them to afford a broad range of housing types, from rental and ownership units from the middle to upper end of the market.
The report suggests, “After decades of experiencing decline, Philadelphia needs to adjust to the success that has been building in Center City for more than two decades and not view with skepticism the volume of construction that many cities now take for granted.”
So in summary? Philadelphia’s housing market is BOOMING, whether you’re selling, buying or renting. Couldn’t be better news! Now’s the time to sell, buy or relocate. Philly is our favorite city and it’s doing fantastically!