Much like when your 11-year-old brother showed you that minute we-can-sort-of-see-it “growth” of hair on his upper lip that he dubbed a mustache, a recent fourth-quarter analysis of Philadelphia home values showed an increase in the last three months of 2014: a whopping 0.8 percent. (Granted, he did grow up to have a luxurious handlebar ‘stache.)
According to the Inquirer‘s Alan J. Heavens, economist Kevin Gillen analyzed the data, which showed that in addition to the 0.8 percent hike seen in average house values for single-family homes, house sales also went up, although in that case the increase was by 11 percent, which Gill says marks it as the “strongest fourth quarter in five years.”
So what caused this growth spurt? Here’s what Heavens reports…
Glance at the latest reports on Philly’s housing market and you find a city with an improving economy, slowly burgeoning job opportunities, and a rising number of new constructions. Reading Redfin’s most recent 2015 prediction chart on the topic, however, humbles our town down to “sleeper” status in the face of “stalwarts” like Houston, Chicago and Dallas.
So how did the real estate brokerage come to that conclusion? For one thing, they didn’t just look at national averages since market level data doesn’t usually show the “widely varying conditions” in the numbers. Instead, they took a closer look at each market and came up with six housing personas, all of which are identified as such: Read more »
It’s official: University City is in a construction boom and we have the numbers to prove it thanks to the University City District’s annual State of University City report.
According to their findings, not only has their been a huge surge in the neighborhood’s population, but there are thirty-two new development projects that were “advanced or completed” during this cycle alone, totaling to “6.9 million sq. ft. of new office, research, residential, academic and medical facilities in addition to nearly 2.2 acres of public space.”
Naked Philly’s Lou Mancinelli points out that the biggest increase in new University City construction has been in private investment, which has earned the neighborhood first place when it comes to office construction in the Philadelphia: “82% of all office construction in the region taking place in UC.”
Related to that, the report also found that office occupancy was highest in UC than any other submarket in Philadelphia (the report says there are twenty-seven), boasting 96% occupancy.
All in all, the last five years has brought University City 9.99 million square feet of real estate projects. Check out the full report here to get a full visual of UC’s growth, as well as the housing graph below.
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Photo credit: Jeff Fusco
Construction is booming in University City and throughout, so that must mean people are buying, right? Well, according to an economist at the Recorder of Deeds Office, Philadelphia’s third quarter did see home sales continue to rise. The Inquirer’s Al Heavens has the story:
An analysis of data from the Recorder of Deeds Office by economist Kevin Gillen showed that sales volume, well below normal since the real estate downturn began in 2007’s third quarter, rose significantly in this year’s third quarter from the second, especially in lower-priced neighborhoods.
Just under 4,000 transactions were recorded in the July-September period – the first time since 2010 that sales have exceeded their historic quarterly average of 3,800, Gillen said.
The 3,937 sales recorded in the third quarter represented a 14 percent increase from 3,466 in the second, he said.
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4101 Sansom, in development by Campus Apartments. Photo: Laura Kicey
No doubt new projects sprouting around the city are contributing to Philadelphia’s growth spurt, but University City in particular has been seeing a substantial rise in developments that had last been present decades ago. According to Natalie Kostelni of the Philadelphia Business Journal, the neighborhood is getting over $1 billion in funds for new constructions.
Other positives alongside the building boom include:
Jobs and employment have risen, population grown, housing stock increased, the number of restaurants and retailers crept up and the amount of office inventory has expanded and maintains an enviable 96 occupancy rate, according to University City’s latest annual report. An abundance of development activity is underway and billions of dollars more will eventually be set in motion.
Among the projects planned to help revitalize the West Philly neighborhood even further are the 40th St. trolley station renovation, which is a collaboration between the University City District, SEPTA, and various city agencies.
• University City on the rise [Business Journal]
More news this way…
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In a contributing article to Next City, Emma Jacobs reports that Philadelphia could be in the midst of an unprecedented housing boom. The growth spurt is evident throughout the city, which was ranked in third place by the Associated General Contractors of America in a list of metro regions who saw a rise in construction jobs.
“Neither of us can remember, in our lifetimes in this city, a construction boom of this magnitude,” said deputy mayor of economic development Alan Greenberger during the announcement.
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Zillow’s latest research shows that nationally and locally home values are up, based on an analysis of 515 metropolitan and micropolitan areas, with 35 of the largest metros areas — Philadelphia included. Here are some overarching stats:
U.S. home values rose 0.5 percent in August 2014 from July, to $175,600.
On a year-over-year basis, home values were up 6.6 percent from August 2013.
The last time national home values were at this level was in March 2005.
Rents were up 3.3 percent on an annual basis.
The calls for 3.1 percent appreciation from August 2014 to August 2015.
In August, Philadelphia, like most of the largest metros, experienced an increase in home values. But it wasn’t a leader: The highest increases were in Miami-Fort Lauderdale, Las Vegas, Riverside and Atlanta. Even so, none of the increases bring any of the metros up to the peak home values from April 2007.
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RealtyTrac released this heat map today, and it’s pretty interesting if you can wrap your head around the various data points on which the map is based:
RealtyTrac analyzed median residential property prices from January 2004 through March 2014 in 1,567 counties nationwide, identifying the peak and trough prices and the months in which those occurred. The analysis also looked at the percentage from peak for median prices in March 2014 as well as percentage peak in each year from 2004 to 2013.
Note this local bit:
724 counties (46 percent) were still 30 percent or more below 10-year peaks in March 2014, including Philadelphia County, Pa., at 31 percent below peak.
Chart by Redfin.
According to Redfin, 32 percent of homes purchased in 2014 in the country’s 17 largest cities were paid for with cold, hard cash. Since 2011, cash sales have represented about a third of the market activity. The reasons?”Tighter mortgage lending standards, investor purchases and fewer homes on the market,” says Redfin.
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