Philly’s real estate market is accelerating at a record breaking pacemollygavin
“Second quarter numbers are in, proving what the local real estate world has been hinting at for months: Philly’s real estate market is accelerating at a record-breaking pace,” says Curbed. Here are five essential takeaways from the latest housing report from Drexel University economist, Kevin Gillen.
1. The average price of residential real estate just hit a new all-time high of $198,150.
2. Last year appreciation occurred at twice the speed of our historical rate and outperformed most other large U.S. cities.
3. In Q2, sales by volume were the highest since the Great Recession despite the fact that inventory fell to an all time low.
4. Million-dollar home sales set a new all-time high. Sales of new construction is also trending upward.
5. The average amount of time it takes for a home to sell in Philadelphia fell to 48 days, another post-bubble record.
An Inquirer analysis of the report revealed surprising trends in “unexpected pockets” of the city and declared that the “next hot neighborhoods might be farther out than you think.” For example the 19137 zip code, encompassing Bridesburg and parts of Port Richmond, saw the greatest increase in home sales last year. The median price in West Philadelphia’s 19104 zip code (Mantua, Powelton Village, University City) increased by a whopping 49% – though it is still well below the city’s average.
Despite all this record breaking, Philadelphia is still one of the most undervalued cities in America according to SmartAsset, a personal finance tech company. Their researchers created a formula to estimate a city’s home value based on “desirability”. They looked at crime, walkability, unemployment and more. Based on that metric SmartAsset determined that the home value per square foot for Philadelphia should be $227.20, while in reality, the average value is closer to $97.50 per square foot.