Philadelphia Real Estate News is a service to Center City Philadelphia home buyers, sellers and developers of residential housing. This online publishing resource provides useful real estate reports compiled from respected municipal, financial, and business news sources.
Philadelphia Real Estate News also provides remarkable insight into residential development patterns and tips for both home buyers and sellers...from a one of a kind seasoned pro, a highly skilled realtor who has gathered valuable market savvy over twenty-five years by observing the patterns of urban development.
Periodically we present new reports and interesting local tips for you to consider in your real estate decision making.
We offer this service as a RSS Really Simple Syndication News Feed. You may follow our Center City real estate news by pasting the link to our RSS XML file - located on the footer - into your desktop news aggregator. We are also listed with all of the principal RSS online directories. Enjoy.
Yours truly,
Duska Woods
Preliminary results from an ongoing national study suggest that the appraised values of some American homes contain a fluff factor -- an overvaluation caused by pressure placed on appraisers to 'hit the number' needed to close the mortgage loan. Realty Times
Federal Reserve Chairman Alan Greenspan considers the option of adjustable rate homeowner mortgages. Wall Street Journal
A recent article in the Wall Street Journal online real estate edition reports that the Philadelphia's real-estate market has behaved more like an interior U.S. market than other coastal metropolitan areas, which typically are more volatile. While the median prices of homes in such coastal markets as Miami and San Diego rose more than 50% between 1999 and 2003, the median price of a Philadelphia single-family home increased approximately 27% during the same period.
The good news is that there's still some steam left in the current cycle. The economic outlook is promising. Household and personal income continue to climb as do general population and number of households. What's more, homes in Philly are very affordable by national standards, with the median-priced single-family home selling for approximately $166,000.
The main indicator tempering this market is lackluster job growth; however, many metropolitan statistical areas have had the same problem since 2000. If mortgage rates remain low, Philadelphia home prices should continue to increase in the near term, though probably at a slower rate than they have during the past several years.
Is Philadelphia's real estate market blossoming or what? Center City is finially growing and hitting its own mark. Even with the recent surge of growth smart investors and home buyers still have a real bargain compared to other large cities around the nation. Forbes
The Federal Reserve reported late July that economic activity in the Philadelphia area continued to expand moderately in June and early July.
Increases in borrowing for Real Estate in Philadelphia is an indication that home sales stayed strong through the end of June.
Commercial and industrial loans grew moderately aided by continuing growth in lending to residential construction firms. Residential mortgage lending has also continued on an upward trend. Contacts at the region's banks and financial services companies continue to remark that strong competition among bank and nonbank lenders is limiting increases in loan interest rates.
Moreover, bankers in the Philadelphia area, according to the Federal Reserve's report, generally expect overall lending to rise during the rest of the year. Many expect lending for residential construction and sales to peak soon, but they note that activity in this sector has yet to show signs of easing. Federal Reserve
A recent article by Alan Heavens in the Philadelphia Inquirer discusses the results of a local study of home pricing characteristics by Trend, the local multiple listing service serving real estate professonals.
The Philadelphia Home Buy Now program is a housing benefits initiative aimed at removing obstacles to home ownership for some 40% of Philadelphia residents.
In partnership with the City of Philadelphia and the Philadelphia Urban Affairs Coalition, the Philadelphia Home Buy Now program operates with no income, downpayment, nor credit restrictions as an incentive to make Philadelphia an attractive place to work and live. Philadelphia Buy Home Now
Looking forward: A successful single-home investor advises using your primary residence as a springboard to buy a second house. Here are some tips for the profit-minded property owner.
Refinance your first investment property to borrow against its equity. Use this line of credit to pay the deposit and rehab costs of the second investment property.
Look to buy an investment home in residential areas of rapid home-price appreciation.
Live in each investment home first to improve the mortgage lending rate options when shoping for the next property, and to reduce any capital gains tax. Wall Street Journal
So you want to move up with a pricier home? Determining how much can you afford is instrumental in making a wise home investment. Wall Street reporter Terri Cullen suggests that the buck stops with you. Wall Street Journal
One of the most difficult parts of buying real estate is coming up with the downpayment. Yet many would have the downpayment if they could access their 401(k)s, IRAs, and other qualified retirement plans. The problem is that few people know how to tap their retirement savings in ways that won't trigger stiff tax consequences.
On average, Americans have about $3,400 of personal savings in the bank. However, this figure pales to the more than $40,000 on average they have in their 401(k) or the more than $30,000 they have on average in an IRA, according to the latest figures by the ABA Retail Banking Survey, Employee Benefit Research Institute (EBRI), and the Investment Company Institute (ICI). "I think there is a general misconception among the public that if you dip into your retirement accounts you will be hit with all kinds of taxes and penalties," said Daniel Lamaute, chairman and chief executive officer of Lamaute Capital, Inc. "But that is not necessarily the case."
One of the most flexible options involves using an Individual-401(k) loan available to small-business owners or the self-employed. It allows a couple to jointly borrow up to $100,000 of their retirement money (or 50 percent, whichever is less) tax-free and penalty-free, as long as the money is paid back. You can use the loan for home buying, home improvement, home decorating, anything. If you use the money to buy a primary residence, the loan term can be extended from the normal 5 years to 10 years.
Another little-know financing option allows you to tap your IRA without penalty to help a family member buy a first home. In this case, the maximum that you can withdraw without penalty is $10,000 and it must be your first time using the homebuyer exclusion.
Visit InvestSafe.Com to learn more about using IRAs and other retirement funds to come up with home down payments. InvestSafe
What do you do when you run out of suburban opportunities and see a demographic shift to downtown Philadelphia?
Toll Brothers of Hunting Valley, Pennsylvania is now converting Center City Philadelphia buildings into luxury condos with all of the high-end amenities offered in their suburban homes.
Their first project is Naval Square located at 23rd and Bainbridge streets. It is planned as a 1,000 unit and is the largest project of its kind in Center City.
Planned to unfold in phases, early estimates offer the condominium units between $200,000 and $700,000. Toll Brothers :: Center City Philadelphia
Loft and condo conversions of industrial buildings in Center City have expanded the residential home market in Philadelphia - offering many new options to sustain the urban lifestyle.
In Bella Vista, near the Italian Market, a new loft project is underway. Construction recently started on the conversion of the five story Curtis Pulishing building located at 11th and Washington Avenue into luxury condominiums.
The structure is expected to house 78 one and two bedroom condos with tall ceilings and large windows. Some will have outdoor space and a view of the center city skyline. The prices will range from $165 - $353 thousand. The first units are expected to be ready for occupancy in the summer of 2005. Lofts at Bella Vista :: Philadelphia Inquirer
Record setting residential development in Center City Philadelphia.
Condominium growth reached 1,600 units this year and 1,465 condos and apartments are expected to reach the market next year, according to data collected by the Center City District.
Furthermore, 67 projects are either proposed or under construction now - with more on the way - anticipating sustained demand for downtown home ownership. Philadelphia Business Journal
The circular eight story Metropolitan Hospital located at 7th and Race Streets will house 130 stylish condos with refined amenities. This $30 Million condominium project will transform 230,000 square feet into a new condominium complex near Old City. A fine example of Philly housing growth that has lead to nearly 5,000 new condos or apartments in Center City since 1998. Philadelphia Business Journal
The 20-story Pennsylvania House was recently purchased from Albert M. Greenfield & Co of Philadelphia by Pitcairn Properties of Jennkintown. With an eye for Center City growth, the transaction will convert the 162 units into luxury apartments that are expected to bring $4,500 a month. Philadelphia Business Journal
Center City luxury living is geared to unfold at 1515 Locust Street. The conversion of this ten story - 55,000 square feet building will house 15 condo units aimed at empty nesters and professionals who want to locate downtown. Philadelphia Business Journal
The long awaited proposal to develop Philips Square high-end townhouses adjacent to Abbots Square in Society Hill has been resurrected. Philadelphia Business Journal
In a $40 million residential conversion project one hundred and ten condominiums will replace the AAA parking garage on south 23rd Street in Center City.
Philadelphia Business Journal
Home Mortgage Etiquette :: Buyer Strength :: Seller Assurance
Since mortgage rates are still at a 40-year low, and nearly 20% of the population moves every year, the housing market in Center City Philadelphia is booming. Philly home values are adjusting to a broader residential housing market.
The home seller is in an intrinsically strong position. For home buyers the process can become very competitive. So a smart buyer is a prepared buyer! Having a pre-approved loan puts you in a much stronger bargaining position with the seller. Your intentions are not tentative. A pre-approved mortgage demonstrates that you are stepping into negotiations with guaranteed funds and can fulfill the obligations of a final negotiated sale price. A quick settlement with guaranteed funds keeps the home seller happy. A cash transaction trumps other offers, of course.
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Please feel free to contact us with your interests. Kindly include your requirements :: Price Range - Type of Home - Bedrooms - Parking - Neighborhood - Time-line :: and a daytime telephone number where I can reach you for an informal personal consultation.
Yours truly - D. Charles Balducci, Editor :: Direct :: 215.531.2000 || Fax :: 215.689.3676
