Philadelphia is officially a hot real estate market, a local report confirms.
Kevin C. Gillen of Drexel University’s Lindy Institute just dropped his quarterly Philadelphia House Price Indices report, which found that housing prices and sale volume continue to hit all-time highs and are on track to hit double-digit appreciation—the first time in a decade.
Using data from the city’s Recorder of Deeds and MLS, Gillen found that in the second quarter of 2016, Philly’s housing prices increased by 6.2 percent. That’s a 2 percent increase from the previous quarter, which was the first time the city’s home values had returned to levels not seen since before the housing bubble burst.
University City experienced the biggest jump in housing prices compared to all Philly neighborhoods. Here’s how much housing prices appreciated:
- University City: +15 percent
- West Philly: +11.8 percent
- North Philly: +11.7 percent
- Northwest Philadelphia: +5.1 percent
- South Philly: +4.2 percent
- Center City/Fairmount: +3.4 percent
- Lower NE Philadelphia: +3.1 percent
- Upper NE Philadelphia: 1.7 percent
- Kensington/Frankford: +0.8 percent
Gillen’s report also confirms earlier findings about Philadelphia’s hot market and dwindling inventory. But while Zillow reported that Philly homes spent an average of 98 days on the market in Q2, Gillen’s findings put that number at 53 days.
That’s a big gap, but regardless, it’s clear that Philly’s real estate market has gone from "balanced" to "seller’s." The increasing housing prices and low inventory means it’s good news for people looking to sell, but bad news for first-time homebuyers.
Says Gillen, "Potential homebuyers have been told that it’s a great time to buy a home. But for the first time in 10 years, it now looks like a heluva time to sell one."
- Philly homes spend on average 98 days on the market [Curbed Philly]
- Report: Philly home values now at all-time high [Curbed Philly]