Everything You Know About Philly Real Estate Is Wrong

For some owners, happy with their beach houses and fixed-rate mortgages, that’s fine. But for folks with reasons to sell — those with a lack of equity built up in the home, or who are mired in interest-only or sub-prime mortgages whose payments have skyrocketed — “Now’s the time,” Maher says.

“Right now, Cape May County is losing residents,” he adds. “The economy in that area isn’t as vibrant as it is in Philly or the rest of New Jersey. It lacks the industries those places have — education, services, health — and relies on construction and tourism.” And as the economists (and the builders, developers and lenders) keep saying, when the economy grows or slows, so does the housing market. 

Which leads to what may be the newest Shore thing: Atlantic City, of all places. Despite suffering remarkable job losses in 2007, A.C., predicts Maher, is going to make a big-time comeback. “Atlantic City has the gaming industry, obviously,” Maher says. “The upmarket casino development plans right now are impressive, and that’s generating new jobs, and I think more people will want to live close to where they work. A developed economy means more stable housing.”

If the theory holds true, with the expansions of Harrah’s, the Borgata and the Taj (and each new hotel room creates the need for 2.9 employees, Maher says), plus handfuls of ritzy new condo projects, A.C. looks to be one of the best bets on the beach.  

What it may mean to you: On the Shore, stay put, sell quick, or buy up … in A.C.!?!


PERCEPTION 8.
Center City is the new Big Apple.

The Philly reality: Okay, so we’re the ones who predicted last year that Center City would become a hot spot for the modern homeowner. But to a great extent, that has been the case.

“From a Main Line perspective, town has gotten really hot,” Smerconish says. “People who used to downsize on the Main Line are moving to Center City. Aging baby boomers want to be connected, to enjoy the arts, their favorite restaurants, all the things they had to drive in for, and now they’re just moving, buying something in one of the newly developing areas. And truth is, Philly has always been a good bargain.”  

Sweet affirms that demographic trends are showing more and more bodies in Center City — and the eagerness of condo developers to get in on the action (when most residential builders have been pulling way back) is further proof of the new(ish) appeal of urban living.

“The thing that gets us excited as developers is the street-front, and the incredible retail that Philly has been getting in recent years,” says Chris Martorella, the Philly-born CEO of New York’s Urban Residential — and the brains behind Center City’s high-profile Aria condo project, and also the new W. “That’s what’s creating the energy, getting people out. Even having grown up in Philly, I wouldn’t build there if I didn’t think these positive things were going to draw people inside and outside the city, or if I didn’t think it was going to keep getting better.”