We have great news for Philadelphia home sellers or those who are interesting in investing in property in the city, either as a primary home, a second home, or a landlord opportunity.
According to the latest Philadelphia Housing Report, the third quarter of 2015 saw an increase in both housing values and home prices. The average home value increased by 1.3% during the three month period from July through September. While this was lower than the increase in the second quarter of the year, that can be attributed to more sales in low-priced neighborhoods, which means that the homes sold were usually… well, lower in price.
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The increase of sales in lower-priced homes is a real positive for Philadelphia. It signals that buyers are looking into previously under-valued neighborhoods. While higher-priced neighborhoods dominated in the second quarter, a more diverse housing market is good news for us all! It means that inventory is moving all over the city, and at all price points. It’s a sign of great economic times in Philly!
Of course, expensive housing also did well. The third quarter Philadelphia Housing Report shows that Q3 broke records for the number of million dollar and up listings – the highest ever, in fact. Homes listing over $1 million doubled in the third quarter at 34, versus 16 such sales in the second quarter. The previous record was 26 in the third quarter of 2008. With Q2 the Philadelphia housing market’s best quarter in 10 years, Q3 had a lot to live up to, and it delivered in many ways. Sales volume, for example, was also way up, with 4,655 home sales, the largest of any quarter since 2007. This is especially surprising because spring and early summer are usually the most popular time to buy and sell a home, but July through August beat the April through June numbers by almost 500 home sales. Sellers should be particularly interested in the average number of days a home spends on the market. In Q3 the number dropped to 61, the lowest amount of time since 2007.
Buyers and sellers in Center City and Fairmount should know that the average house value increased in those areas was 3.0%, while Kensington/Frankford saw a 4.4% bump and South Philadelphia overall went up 5.2%. University City saw a tiny increase at 0.1%, which was actually the lowest in the city, even though it was still positive. Yes, that means that every single city neighborhood saw home values go up.
While Philly hasn’t quite experienced the re-growth of the housing market that other major cities have seen since the recession, expect that to change based on this year’s numbers. Experts agree that a housing market recovery is taking hold in this city, as seen through more demand and slightly dwindling supply. This signals that sellers can expect to see some higher prices than they would have seen in recent years, and buyers are in a great position to buy now while the market is more affordable and see their homes increase in value in the near future.
If you are interested in buying, whether as a first timer or someone who needs help navigating the Philly real estate market, or selling your current Philadelphia home, please feel free to reach out and see how I can help you meet your housing goals!
About Agent Lady: Cherise Wynne is a leading real estate agent in Philadelphia, helping home buyers and sellers navigate the City of Brotherly Love, with a special focus on first time home buyers. To chat about getting started with your first time home buying experience, click here.
