The Philadelphia Zoning Process of Building in Philly

Philadelphia Sales Stats

I compiled a bunch of statistics for the Center City District of Philadelphia and the Philadelphia Business Journal. Yes, I'm a nerd. Here are some interesting figures for ya. Below is a chart of 9 zip codes. On this chart I show the percentage changes in Units Sold, Days On Market, Original List Prices, and Sold Prices.

Three Year Performance, 2006-2008
Units Sold/D.O.M./Orig List/Sold Price/Current Inv Accumulation
19102 39.53% 16.07% -15.29% -20.13% 10
19103 18.18% 27.71% -19.44% -18.64% 10
19106 0.46% 12.50% 5.59% 2.95% 16
19107 -7.48% -1.03% 14.54% 14.16% 13
19123 -75.00% -14.66% -7.34% -11.48% 24
19130 -32.83% -6.02% 2.42% -0.04% 7
19146 -18.00% 28.57% 12.91% 10.27% 10
19147 -27.33% 31.08% -3.77% -6.20% 10
19125 -31.49% 0.00% 10.32% 9.02% 9

Take note of a few things on here. The units sold is down, almost everywhere... as much as 75%! On average, about 35% since 2006. This we know from watching tv, right? The sales prices in the individual zip codes range from down 20% to up 10%! See?! Philadelphia is a relatively healthy market compared to many others in this country right now... and now you can even see by neighborhood.
South Philly (19146) and Fishtown (19125) are the healthiest while center city (19103) got crushed the most! VERY INTERESTING!

The Bike Ride to the Office

The trip to the office is a scenic one and there is plenty to talk about and check out, as shown on this video. Take a gander!

Old City, Philadelphia

Here we have a short video blog entry about Old City Philadelphia. This is a beta test of future video blogs to come. 2009 will be the year we provide new and exciting inside info on everything from tasty byob restaurants to what variances of the zoning codes have passed at the ZBA hearings. We will spotlight neighborhoods and individual houses or developments. Our hope is to capture you and show you things you may not have seen or heard about before. Its not just about real estate.... its about a lifestyle and Philly has a lot of it!

For those seeking raw Philadelphia sales data....

www.goppelt.net/phpi/phpi2q08.pdf#page=2

Hmm. The financial market.

Interesting times, eh? What does all of this economic panic mean to everyone? Well, the markets that bought, sold, and traded the mortgages 2 and 3 times above the banks that initially lent them are in trouble. The government has this massive bill, which covers everything from additional tax credits to energy star dishwashers to permanently allowing the government carte blanche with terrorist investigations. It is a temporary fix for a much needed economic correction. We are a free market economy and with that, not all businesses succeed. Some fail. Panic arises. Downfall ensues with those who predict what's going to happen next and we spiral into whatever it is we are going into. The fact is, perhaps it was too easy to buy a house 3 years ago. Perhaps a no doc, no verification, interest only loan that would soon balloon into a very high rate with negative amortization wasnt such a good idea. Perhaps an unregulated industry needs to be regulated. These are all larger ethical questions. The immediate resolution: money! Lots of it... and tax credits for the environment. And so, there are proposed tax cuts for wind power, clean coal, energy star appliances, and others. For our every day to day lives, be frugal. Be smart. be sensible. Dont be frivolous and try not to charge up that 24% credit card. Even if that bank folds, Warren Buffet, Wells Fargo or Citigroup will buy it so you will still owe it. ;)

Banking crunch

What does this all mean? Well, for one, i strongly advise everyone to downsize. It's time to crunch and save and be prepared for shortcomings because they may well be around the corner. Many developers are turning to the rental market to wait out the storm while its becoming more difficult to qualify for a loan. However, if you do qualify for a loan, its a great time with the low rates and large inventory. The construction market is still quite healthy in Philadelphia. Luckily, many projects have reasonable exit strategies in fair retail prices or rental capabilities. Those that seemed to be a little unrealistic.... many of them arent built yet. Wonder why?

Please hear this... if its too good to be true, it is. Unfortunately, the mortgage industry isnt regulated. So a door to door aluminum siding salesman could be selling mortgages behind a desk and they make their money in volume. There is no licensing for this field. The fees are not always disclosed far enough before settlement. So, please be cautious and dont go for an interest only balloon that will explode by 3 points in 2 years and render your home purchase unaffordable. The traditionall 10 or 20 percent down mortgage at a nice warm 30 year fixed with very little upfront pointage is looking lovely these days. Go find one!

As for sellers, in this time with a heavy credit crunch, the buying pool has been shaved... maybe in half. We need to create value in your home. We need the perception to be that it is a worthy purchase and there is great differentiation in your home than the rest of the inventory. I just ran some inventory numbers for a developer client of mine and the news was grim. 19125 in the 400-600k home marketplace has a 27 month inventory. Northern Liberties has a 56 month inventory! What does that mean? If there is not one new listing in this price range, it will take 27 and 56 months to sell thru everything that is for sale today. So, competition is fierce. There are still transactions as people still need to move for whatever reasons.... however, the products have to stand out. Have a nice weekend!