Posts Tagged ‘Real Estate’

Some highlights from our Mid-June market report, via Altos Research.  Conditions continue to favor sellers. Demand for homes in Philadelphia remains strong.  Available supply is purchased rapidly, with Philadelphia properties currently averaging a mere 4 months on the market.

However, median price has increased from $189,000 to $192,500 in the past two weeks. We’ll see by early August if a few expensive properties skewed the average, of if prices are beginning to trend upwards.  Only time will tell.

Mid-June Market Report Excerpts, via Altos Research

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Twitter & Instrgram: @TheAtacanGroup

429 N 13th Street, Unit 5C – Loft District, Philadelphia

Gorgeous Loft District condo featuring 1 BR, 1 BA & walk-in vault!

Highlights Include: 

• Private bedroom & full bathroom
• Indoor garage parking
• Custom u-shaped kitchen with stainless steel appliances
• Large bathroom features deep Jacuzzi, hardwood floors & subway tile

Additionally offers:

• Versatile, bi-level vault unit perfect for storage, office space, den or guest room
• Convenient location between Callowhill & Spring Garden, just one block from Broad Street
• Minutes from Reading Terminal Market, Union Transfer & Chinatown!

Open House Details: 

• This Sunday [June 9th], 12:00 pm – 1:30 pm

See all listing details for 429 N 13th Street #5C, along with additional properties we offer.

For further information on this property, contact Adam Atacan.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Twitter & Instrgram: @TheAtacanGroup

1100 South Broad St. [Unit #409B] – Newbold, Philadelphia

Highlights Include: 

• Deeded parking
• High ceilings & hardwood floors
• New kitchen cabinets, granite countertops & stainless steel appliances
• Marble bathroom features whirlpool tub & separate tiled shower
• Washer/Dryer unit

Additionally offers:

• Landscaped courtyard access
• Koi ponds, fountains & dog walk
• Health & fitness center
• Dry cleaning delievery
• 24 hour concierge service

See all listing details for 1100 S Broad St [Unit 409 B], along with additional properties we offer.

For further information on this property, contact Aaron Byles.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Twitter & Instrgram: @TheAtacanGroup

Happy Friday! We have two can’t miss open house opportunities this Sunday June 2nd. We’ll break down all the details on properties, location, and more below. We look forward to hosting Philadelphia’s future homeowners this weekend.

310 Catharine Street [Unit E] Queen Village, Philadelphia

Location: 310 Catharine Street [Unit E] Philadelphia, PA 19147 

Time: 11:00 am – 1 pm

Listing Agent: Stephanie Slapin

Highlights:

• Beautifully updated, spacious condominium in the heart of South Philadelphia‘s Queen Village neighborhood!
• 2 Bedrooms &  1.0 Bathrooms.
• Gorgeous kitchen opens up to separate dining area.
• Living room includes wood-burning fireplace, exposed brick wall & hardwood floors.
• Includes attic & basement storage units.
• Pet friendly.
• Minutes from South Street, Penn’s Landing & Philadelphia’s historic 9th Street Italian Market!

For additional information, pictures & pricing: http://bit.ly/10EZR6D

E-mail stephanie@atacangroup.com with any questions or concerns.

1625 North Street Fairmount, Philadelphia

Location: 1625 North Street Philadelphia, PA 19130

Time: 12:00 pm – 1:30 pm

Listing Agent: Karoline Kelsen

On-Site Representative: Adam Atacan

Highlights:

• Gorgeous townhouse in North Philadelphia’s Art Museum area with garage parking!
• 3 Bedrooms & 3 Full Bathrooms.
• Open concept living room/dining with fireplace, perfect for entertaining!
• Kitchen features wooden cabinets, black granite counter tops & stainless steel appliances.
• Slate patio with landscaping.
• Roof top deck with amazing [south facing] city views!
• Located on a fantastic block just steps from award winning restaurants, coffee shops & parks.
• Recent price improvement!

For additional information, pictures & pricing: http://bit.ly/12ToniO

E-mail karoline@atacangroup.com with any questions or concerns.

Have a great weekend fellow Philadelphians!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Twitter & Instrgram: @TheAtacanGroup

310 Catharine Street, Unit C – Queen Village, Philadelphia

Newly Listed - 2 BR, 1 BA condominium in the heart of South Philadelphia‘s Queen Village Neighborhood!

Highlights Include: 

• Kitchen, dining area & spacious living room
• Master bedroom, with separate den & large bathroom
• Exposed brick wall
• 12″ high ceilings
• Wood burning fireplace
• Hardwood floors
• Patio access
• Assigned parking

Walking Distance From: 

• Penn’s Landing
• South Street
• Jim’s Steaks
• 9th Street Italian Market
• Sacrcone’s Bakery

See all the listing details for 310 Catharine Street (Unit C)  and check out all the other Queen Village Real Estate Listings.  Hope everyone had an enjoyable Memorial Day weekend!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Twitter & Instrgram: @TheAtacanGroup

With Spring in the air, this is the time home-sales season has officially begun. 2012 showed incredibly low mortgage rates, many believed wouldn’t last. According to Freddi Mac, the current average rate on a 30 year mortgage stood fast at 3.54%. This should a slight improvement compared to last week when rates were at 3.57%. With historically low mortgage rates still active, many believe this will transform into a tremendous amount of buying/selling active in the Philadelphia market this coming Spring and Summer. So if you are thinking of buying or selling your home, now is the time!

 This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

- Sunday, 4/7/2013: - 

10:30-12:30 PM

MLS#: 6192625 - 2921 W. Harper Philadelphia, PA 19130 - Art Museum Area- $207,500

12:00-1:30 PM

MLS#: 6184979 - 1625 North St. Philadelphia, PA 19130 - Art Museum Area- $719,000

1:00-3:00 PM: 

MLS#: 6184399 - 405 Brown St. Philadelphia, PA 19123 – Northern Liberties - $499,900

MLS#: 6183726 - 2630 Brown St. Philadelphia, PA 19130 - Art Museum Area- $629,000

MLS#: 6186262 -  2801 Pennsylvania Ave. #A206 Philadelphia, PA 19130 - Art Museum Area- $247,000

1:30-3:00 PM

MLS#:6185542 - 2531 Swain St. Philadelphia, PA 19130 - Art Museum Area- $519,000

 This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

The trendy sushi craze that was sweeping across the US a few years ago is still running strong, especially in the Philadelphia scene.  Now you can find sushi almost anywhere in the area, from the abundance of restaurants to fresh sushi at your local grocery store.  Sushi has evolved into its own style and people are eating it much more frequently.  No matter what Philadelphia neighborhood you live in, you have access to delicious fresh sushi.  The debate for the best is one that can be argued, but here are a few must try locations:

1.)    Morimoto, 723 Chestnut Street- A quick Google search will show you all of the positive reviews.  Morimoto is a must try not only for the sushi but for the striking interior of the restaurant.  Iron Chef Morimoto takes Japanese food to a new level in this cutting-edge restaurant.

2.)    Umai Umai, 533 N. 22^nd Street- This cozy BYOB has received numerous praises from critics for the delicious sushi.

3.)    Blue Fin, 1017 Germantown Pike Plymouth Meeting- City dwellers travel out to the burbs for a taste of the often hard-to-find fish used in the sushi at Blue Fin.  Located in a strip mall, this BYOB might not scream “must try” but it’s definitely worth the trip.

4.)    Izumi, 1601 East Passyunk Ave- Another BYOB located in the East Passyunk neighborhood, Izumi doesn’t disappoint.  “Izumi is simply delicious sushi, done with care and served with style.”

5.)    Vic, 2035 Samson Street- Vic is known for affordable rolls, they have a great 3 roll special for $10.95

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

~ POINT BREEZE ~

Point Breeze, which boundaries consist of 25th street to the West, Broad to the East, Mifflin Street to the South and Washington Ave to the North, has become a hot spot for home buyers. The area has been on the national front recently for land grabbing. The area has many vacant lots and homes just blocks south of popular Graduate Hospital and Center City area.

• Property values in the area have jumped more than 43 percent in the past six years, but still very affordable. http://www.trulia.com/real_estate/Point_Breeze-Philadelphia/5814/market-trends

• Average home sale prices have skyrocketed from $30,000 in 2000, to an average of around $150,000 today. Even certain sections of the neighborhood have seen units go for over $250,000.

• Hip and trendy gastropubs/restaurants are popping up in the area. Such delicious places as: South Philly Tap Room, American Sardine Bar, Circles, and 16^th St. Seafood.

• Easy walking distance to Septa bus lines and the Broad Street subway system.

• Just minutes from I-95, 76, and the sports complex!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visitwww.CenterCityRealEstate.com

Come check out the following Philadelphia Real Estate Open Houses this Sunday, October 14th:

• 729 Sears St. Philadelphia, PA 19147 - $359,900 – Passyunk Square - 1:30-3:00PM

• 2834 Cambridge St. Philadelphia, PA 19130 - $219,900 – Art Museum Area -1:00-3:00PM

• 912 Kimball St. Philadelphia, PA 19147 – 379,000 – Bella Vista – 12:00-2:00PM

• 122-124 Chestnut St. 300 Philadelphia, PA 19103 – $259,900 – Old City- 3:00-4:30PM

• 411 S. 9^th St. #3F Philadelphia, PA 19147 – $199,900 –Washington Square -1:00-3:00PM

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visitwww.CenterCityRealEstate.com

1. Lowball Offers: One of the biggest mistakes buyers are making these days are sticking with lowball offers.  This was common during the lowest points of the housing bust but there has been a resurgence.  Buyers and Sellers often have different ideas of what constitutes a ‘lowball offer’.
2. “Sleeping on it” too long: The reality of the market right now is that inventory is low. The National Association of Realtors has reported the numbers of homes listed for sale has fallen by more than one-third since the peak in July 2007.  Homes that are priced appropriately in desirable neighborhoods can easily go under contract in days or weeks, even hours.
3. Too many contingencies in the contract: Avoid unnecessarily long inspection periods and other unnecessary contingencies such requiring the sale to be contingent on a family member touring the property.
4. Not attempting any personal impression on the seller: It’s very likely the seller will have 2 semi equal bids on their home.  Sometimes submitting a personal letter with the contract that describes parts of the home you like and why buying the home is important to you can warm the seller up a bit.  This makes you more than just another number to them.
5. Failing to get preapproved for a mortgage before starting the search: Mortgages aren’t easy to get anymore.  Standards are much more strict and the process can take weeks or even longer.  It’s important to know exactly what you can afford and receiving a commitment for a specific mortgage from a lender is a crucial step in the home buying process.

More on these mistakes at Philly.com’s Mistakes homebuyers make in a seller’s market.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Boost your Home’s Value:

• Appraisals can be a make or break issue
• More skilled appraisers have been leaving the industry
• In some cases you will be able to request a skilled appraiser but usually it will be strictly 3rd party
• Know your Comps! (Recent home sales in past 6 months, similar location, size, age, additions… start at Zillow)
• Some appraisers will use outdated comps.
• Make sure you know what makes your home different from the comps.
• Point out any home improvements to the appraiser.
• Takes a few weeks to get the appraisal back
• If you are going to try to appeal the appraisal than you better have evidence to back it up!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

• Increasing prices for 3 months in a row… has never happened before.
• Many people think bottom has passed us.
• Don’t want to own 2 houses, don’t buy second before getting rid of 1st.
• People are actually making money by trading up because you get a discount on the house your buying as well.
• Short Sale- ruins credit for 3 years but it gets the house sold. Get a broker who specializes in short sales.
• You always save money if you can refinance to a lower term.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

• Mitt Romney- has 6 homes! Lakeside compound $10 million – main house, boat house, and guest house.  “I have arrived and I’m important AND I’m tasteful” big family house.
• Ron Paul- Lake Jackson, Texas. 4 bedroom for sale for $325,000 (over priced)  “Look at me I’m just a regular guy” typical ranch, nothing fancy.  FSBO
• John Huntsman- Brownstone mansion in DC.  Lots of art and formality.  His parents compound in Utah has 12 beds 16 baths $50 million – 63 acres.
• Newt Gingrich- Virginia – Washington suburb.  Bought in 1995 for $995,000 – worth much more now.
• Rick Santorum- Great Falls, Virginia.  $2 million.  4 bed 5 bath.  “I am rich”
• Rick Perry- Moved into a 3 1/2 acre rental estate paying $9,900/month!

All are big wealthy homes and all candidates are very very rich!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Where is America moving?

As it does every January, Atlas Van Lines reviews data on the origins and destinations of interstate moves during the last 12 months. The 2011 Migration Patterns study results provide a snapshot of relocation patterns, showing an overall increase in the number of moves over last year.

Southwestern and Mid-Atlantic coastal states were popular destinations in 2011. The Midwest continues to lose residents, but Michigan became a balanced state after six consecutive years of steady outbound moves. For the sixth year in a row, Washington, D.C. had the highest percentage of inbound moves, while Ohio came out the clear leader in the highest percentage of outbound moves.

Other migration trends:

Northern States

With the exception of New Hampshire, which went from an inbound to a balanced state, and Massachusetts, Connecticut and West Virginia, which transformed from balanced to outbound states, the Northern States saw relatively few changes in moving patterns from 2010 to 2011.

Southern States

The Southeast remains balanced with the exception of Louisiana, which switched from a balanced state to an outbound one in 2011. Southwest states Texas and New Mexico continue to be inbound states, as well as Mid-Atlantic states Virginia and North Carolina. After becoming a newly inbound state in 2010, Kentucky is now balanced.

Midwestern States

Again seeing the majority of its states with more outbound than inbound moves, the Midwest region only has three balanced states – Iowa, South Dakota and Michigan. Despite uncertain economic conditions, Michigan became a balanced state following a six-year streak as an outbound state. Wisconsin, Nebraska and Kansas finished 2011 as outbound states – all of which were previously classified as balanced states for seven, nine and 10 years in a row, respectively.

Western States

The annual study shows that the majority of the Western states remain balanced with only two states changing status. Utah is now an outbound state and Wyoming is now balanced.

See more about this topic at Atlas Van Lines

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visitwww.CenterCityRealEstate.com

Foreclosures:

• 1.5 million homes in the foreclosure process
• 3.5 million homes with delinquent mortgages
• 10 million properties underwater

Median Home Prices:

• Northeast – down 5.5% –  $224,400
• Midwest – down 4.7% – $132,800
• South – down 1.6% – $145,700
• West – down 1.6% – $207,500

720 Credit rating required for home loans today.  Mortgage rates are still at an all time low and could go even lower

Rise in home sales at the end of 2011 – prices will likely go up translating in more deals.  Overall in the coming year real estate should be better:

• Foreclosed homes will take longer to hit the market
• Vacation properties will sell for less
• Underwater homeowners will get more help from Uncle Sam

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visitwww.CenterCityRealEstate.com

If you’re contemplating a move to Philadelphia, there is a great article over at Flying Kite about the benefits of living in Philly and how you get plenty of bang for your buck!

The northeast is generally one of the pricier parts of the country because of the quality of life, opportunity, energy, and culture.  Philly offers all of that — was recently named the Number 1 U.S. city for culture, is the 5th largest city in the country, and one of the major coastal cities in the Northeast.

Sometimes Philadelphia feels like a closely kept secret — urban character, excellent food, cultural capital and low, low rents. Time to spill the beans. Tell your friends. Buy them a cheap local brew at happy hour. Give them a tour of your surprisingly-spacious pad, perfect for potlucks and bike storage. Take them to a BYOB. Get them a great coffee and a Wednesday-night ticket to the Ritz.

“Our reasons were number one the cost thing,” explains Kunal. “(Rittenhouse Square) is basically Union Square. Hypothetically speaking, our rent in New York would be like 15, 20 grand. Here, it’s a lot less than that. From a practical standpoint, to get the business off the ground, it made sense.”

-Flying Kite

All you New Yorkers that are looking for a cheaper alternative to city living should check out this incredibly unique rental in one of the most prestigious neighborhood in Philly: 433 Spruce St. Philadelphia, PA 19106 – Society Hill

Also make sure you check out our article about the 20 Things to Know Before Moving to Philadelphia.

And take a look at the Flying Kite article – cost of living: how expensive is Philadelphia?

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Are you getting ready to sell your home?  Make sure you go through this checklist to get your home in the best possible condition to appeal to buyers.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Want to own your own town?

The 106 year old town Scenic, South Dakota is on the verge of becoming a ghost town and is for sale.  The township owner recently dropped the price to $799,000 from $3 million.  It consists of 46 acres, 2 jails, a dance hall that once doubled as a gym, a museum, bunkhouse, two stores, a train depot and saloon.

Make an offer today!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Interesting article from the New York Times explaining what could happen to the 30 year fixed rate mortgage loan without Fannie Mae and Freddie Mac.  Fannie and Freddie have made a big mess by backing millions of shoddy loans over the years and we are all paying for it, literally.

• Interest rates will rise for most borrowers with urban and rural home buyers experiencing the sharpest increases.
• Lenders could start charging fees for certain features that people currently take for granted, like locking in an interest rate weeks/months before actually taking out the loan.

A major question still unanswered is whether the government should preserve the benefits that were provided to middle-class borrowers such as low rates, lenient terms, and the ability to get a mortgage when banks aren’t making other types of loans.  Some politicians want the government to pull back, others want the government to make a new system that will preserve the benefits but minimize the risk of future bailouts.

With higher restrictions likely coming, buyers who are currently on the fence right should do something now!

Check out the full New York Times article for more on this.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

• 50% of major markets  have come off the bottom with rising prices
• Interest rates remain low
• Playing with fire if you wait it out for lower prices
• Pricing your home ahead of the market
  • 5% less or above than selling prices around you whether price trends are declining or rising respectively
• Remember, even if you take 10% less on a home sale, you can get the same 10% discount on a bigger and better home.
• Open Houses are up all over the nation!

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

CNBC Realty Check

• Sales coming back, prices haven’t yet hit bottom
• Prices down -5.1% (-26% from peak)
• Sales are mostly bargain hunters
• Now is the time to get in if you have:
  • A Long term time horizon
  • Equity of all cash
  • Patience to go through a short sale or foreclosure
• Foreclosure’s share of sales rose to 21% of all home sales.

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

Your House As Seen By:

Yourself…

Your Buyer…

Your Lender…

Your Appraiser…

And….
Your Tax  Assessor…

This is brought to you by Philadelphia Real Estate Blog

To view every Philadelphia Real Estate Listing, including Philadelphia Condos visit www.CenterCityRealEstate.com

By Inman News, Tuesday, September 29, 2009.

Home prices rose for a third consecutive month in July, and the rate of annual decline continued to shrink for the sixth month in a row, according to the Standard & Poor’s/Case Shiller home price indices published today. An index tracking prices in 20 metro areas, which does not include Philadelphia Real Estate,  showed prices increased in 18, by an average of 1.6 percent on a non-seasonally adjusted basis. Looking back a year, the 20-city composite index was down 13.3 percent — a smaller drop than the 15.4 percent decline seen in June.

The numbers “continue to support an indication of stabilization in national real estate values,” David Blitzer, chairman of the index committee at Standard & Poor’s, said in a statement.

But it remains to be seen whether the housing market will weather the possible expiration of a tax credit for first-time homebuyers in November, anticipated higher unemployment rates, and a possible increase in foreclosures, Blitzer said.

The 20-city composite index showed prices down 32.6 percent from their peak in second-quarter 2006, to levels last seen in fall 2003.

The five markets in the 20-city composite showing the strongest month-over month price increases were Minneapolis (4.6 percent), San Francisco (3.3 percent), Chicago (2.7 percent), San Diego (2.5 percent) and Atlanta (2.3 percent). Two markets saw month-over-month price declines: Las Vegas (-1.1 percent) and Seattle (-0.1 percent).

Looking back a year, all markets in the 20-city composite continue to show price depreciation, although six of those markets experienced only single-digit declines and three are nearing positive territory: Cleveland (-1.3 percent), Dallas (-1.6 percent) and Denver (-2.9 percent).

The five markets with the sharpest annual declines were Las Vegas (-31.4 percent), Phoenix (-28.5 percent), Detroit (-24.6 percent) Miami (-21.2 percent) and Tampa (-18.4 percent). The index showed prices in Las Vegas down 54.8 percent from their August 2006 peak.

All Philadelphia Real Estate listings are found at www.CenterCityRealEstate.com

According to the real estate business portal Globaledge the most searched country in Europe for real estate is Spain! It is a buyer’s market there too.

Position Country/Region Sept. Volume % of Total

1 Spain 393,617 27.9%

2 France 184,102 13.1%

3 Italy 129,396 9.2%

4 Middle East 121,835 8.6%

5 Central & South America 113,434 8.0%

6 Bulgaria 103,516 7.3%

7 Cyprus 101,121 7.2%

8 Caribbean 79,195 5.6%

9 Eastern Europe (no Bulgaria) 75,636 5.4%

10 Turkey 65,297 4.6%

11 Portugal 42,465 3.0%

For Home Buyers, The Window To Negotiate With Sellers May Be Closing

WEEKEND WITH THE KIDS: PHILADELPHIA; Culture, History And a Wealth Of Places to Play

By TERRY TRUCCO, New York Times Travel Desk, November 5, 2008

ITS hardly surprising that William Penn, Philadelphias multitalented city planner, had three sons. Big cities dont come much more child-friendly than this. More than 300 years after Penn mapped it out, Philadelphia is chock-full of activities and sights that will captivate children and grown-ups for different reasons, like a Pixar movie. Consider the gigantic clothespin perched upside down in front of the Centre Square building (children think cool; parents think Claes Oldenburg). The easiest and, arguably, most pleasing way to see Philadelphia is to stick with the older, central parts of town, emulate Benjamin Franklin (father of three) and walk. Philadelphias culture comes in convenient clusters — museums grouped near Logan Square not far from the Schuylkill River; historic sites, punctuated by steeples and cobblestones, near the Delaware River. Too cerebral for toddlers? Let them run around the trees and statues (Billy the goat is a favorite) in Rittenhouse Square, or plop them in a chair in the shoe department at Lord & Taylor, formerly the fabled Wanamakers, South 13th and Market Streets, where the 28,000-pipe organ thunders out concerts Monday through Saturday, noon and 5:00 p.m., noon and 7:00 p.m. on Wednesday, free of charge. Hows that for family values?

The latest data from the National Association of Realtors shows what buyers and sellers in Center City Philadelphia already know, namely that the condominium market is strong.  Sales of Condominiums and Cooperatives in the Northeast have been increasing since January of 2008 and are up 4.3% from March 2008 to April 2008.   Sale prices for Condominiums and Cooperatives in the Northeast are flat- 0% change from April 2007 to April 2008.

Alan J. Heavens, Real Estate Columnist for the Philadelphia Inquirer, wrote an excellent piece recently that was featured in May 24th’s paper.  The article described the difficulty facing the real estate professional or the potential home buyer or seller when trying to interpret the endless stream of home sales and price data being publicized.  Two major players, the National Association of Realtors and Standard & Poor’s, readily admit that the data they collected could overstate price declines.  

For experts like Kevin Gillen, research fellow at the University of Pennsylvania’s Wharton School and Vice President of Econsult Corporation, this is no surprise.  It seems that many of the national and regional housing indexes real estate professionals and consumers use are prone to overestimate both the downside when things are down or conversely the upside when things are going well.

The good news for the Center City buyer or seller is that national housing data is not nearly as relevant as local housing data.  Anyone buying or selling real estate in Center City knows that real estate in Philadelphia has always been a local business that can vary greatly by neighborhood and sometimes even by street block.  It is essential that anyone buying or selling in Center City recognize that a decrease in a national or regional price index does not mean that homes for sale in Center City have decreased the same amount.  In fact, the Philadelphia Inquirer reported in an article in April that ago that prices in Philadelphia had not decreased from March 2007- March 2008.  All of this suggests that it might be worthwhile to take the catastrophic real estate news that is publicized every day with a grain of salt.

The Philadelphia Inquirer recently posted an article stating that the Philadelphia area foreclosure rate is down 30%!  That’s great!  To read the article see below…

Philadelphia area’s foreclosure rate drops 30%

By Al Heavens

Inquirer Real Estate Columnist

The Philadelphia region’s first-quarter foreclosure rate fell almost 30 percent from the same period a year earlier, bucking a national trend that saw filings rise to one in every 194 U.S. households.The rate puts Philadelphia 82d on a list of 100 metropolitan areas compiled by RealtyTrac Inc., the Irvine, Calif., firm that tracks foreclosures nationwide.

Included in the top 10 metro areas for foreclosure filings were six cities in California, as well as Las Vegas, Detroit, Phoenix and Fort Lauderdale, Fla.

Stockton, Calif., in the central part of the state, led the list with 7,560 filings, or one household in 30, an increase of almost 292 percent from January-to-March 2007.

The more-populous eight-county Philadelphia region had 3,064 filings, or one household in 527, a decline of 29.64 percent, RealtyTrac’s data show.

Nationally, there were 649,917 filings in the first quarter, an increase of 112 percent over January-to-March 2007, RealtyTrac reported.

James Saccacio, the company’s chief executive officer, said that “unusual, nonmarket factors” might be the reason for the drop in this region, citing the city’s April moratorium on foreclosure sales and a program, approved in March, to delay foreclosure proceedings on owner-occupied properties until the owners have met face-to-face with lenders to attempt a loan-workout plan.

In the city, fewer properties were sold for foreclosure in 2007 than in 2003, said Sheriff John Green, who credited efforts by his department and nonprofit counseling agencies to get homeowners to begin talking with lenders before the process started.

In 2003, 7,833 properties in Philadelphia were scheduled for foreclosure sale, and 2,694 sold, Green said; in 2007, 5,670 were scheduled, and 2,041 sold.

Green said he was cautiously optimistic these efforts would keep the problem under control, even as foreclosure experts anticipated an increase in filings as adjustable-rate subprime loans reset in the coming year.

Moody’s Economy.com chief economist Mark Zandi observed, “Foreclosure moratoriums are delaying, and not forestalling, foreclosures.”

The Philadelphia area’s foreclosure rate will remain well below the national average, Zandi said, because “the region didn’t get caught up as much in the investor and subprime-lending frenzy during the housing boom.”

The city’s foreclosure-sale moratorium does not affect the suburbs. But even as filings rise slowly in the seven counties outside Philadelphia, the number of properties that reach actual foreclosure sale remains fairly low.

For example, Montgomery County listed 267 properties for sheriff’s sale in March. Only 33 were sold. Action on the rest was stayed or postponed.

Thirty-seven properties were scheduled for sale in Gloucester County in March, but in 20 cases, the sale either was canceled or the homeowner filed for bankruptcy to avert it, the records show.

Across Pennsylvania, 633 foreclosure sales were completed in January and February combined, up 16 percent from a year ago, according to data from the Mortgage Bankers Association. In New Jersey, 381 sales in those two months combined represented a 97 percent increase year over year, due largely to higher numbers in the northern part of the state.

Foreclosures in this region continue to fall heaviest on low- and middle-income borrowers. An examination of properties listed for sheriff’s sale in each of the eight counties since January showed that the vast majority involved mortgages ranging from $75,000 to $350,000.

In Pennsylvania and New Jersey, foreclosures must be completed within 300 days of the lender’s filing, which effectively buys homeowners some time. By contrast, in California, the period is 135 days; in Texas, 90; and in Virginia, which has the shortest limit, 60 days.

In addition, Pennsylvania and New Jersey have programs to assist those facing foreclosure.

Pennsylvania’s Housing Finance Agency administers the Homeowners’ Emergency Mortgage Assistance Program, which lends money to help bring delinquent payments current, using the mortgage on the property as security.

Applications for the loan, obtained through state-approved counseling agencies, postpone further foreclosure action for 60 days, pending agency review.

In November, the agency launched REfinance to An Affordable Loan (REAL), which provides 100 percent fixed-rate loans to troubled borrowers. The Homeowners’ Equity Recovery Opportunity Loan (HERO) lets the agency buy a homeowner’s loan from the lender and sets up an affordable repayment agreement.

New Jersey’s Department of Community Affairs has launched a public-private alliance called NJ HOPE.

Spokesman Chris Donnelly said the program was “committed to preserving homeownership by raising consumer awareness of available mortgage products, funding and refinancing, increasing access to credit and loan counseling, and providing temporary assistance to consumers facing foreclosure.”

The Media

During the beginning of the 21^st century the media queried “when will the boom bust?” Now the daily headlines claim the American real estate markets are falling, homes are losing value, the mortgage markets have seized up and institutions are reluctant to lend against an asset declining in value. But what if the headlines are not quite accurate? What if the data is distorted and the distortions are being sensationalized?

The Data
Given the importance of the outcome, now is the time to scrutinize before fiction becomes reality. Today’s headlines are provided largely courtesy of the S &P Case Shiller Index. This index has replaced two older indexes on the front page of American newspapers. One was the National Association of Realtors’ monthly price index and the other is the OFHEO index (Office of Federal Housing Economic Oversight). The latter two use rather different methodologies but over the years have reached remarkably similar conclusions about prices of homes in America. When different methodologies yield similar results, you get a good handle on reality.

Today we don’t hear much about either index. Instead, the Case Shiller index is everywhere with its ominous message. The index talks about a 15% price decline in Miami and 5.6% for the year in New York. Bloomberg quotes Shiller: “We are in an historic housing bust right now.” Is Shiller right? The importance of the question forces us to look through the other lenses of NAR and OFHEO.

OFHEO has been keeping a national index for years and publishes monthly a one inch thick book on housing prices. It says that in 2007 the average price in America was down .03%. Yes, that is three tenths of one percent, not Shiller’s 8.9%. Compared to OFHEO Shiller’s index overstates the decline by 29 times or 2900%.

The National Association of Realtors index showed a median 1.4% decline nationally after 64 years of un-interrupted gains. Compared to NAR’s 1.4% median price decline, Shiller overstates the “freefall” by 6.3 times or over 600%. The 2007 OFHEO and NAR numbers possibly demonstrate not weakness, but rather resiliency.

Additionally, the 2007 report from Realogy, the largest real estate brokerage company in the world came out also disputing Shiller. Realogy owns the Century 21, Coldwell Banker,and Sotheby’s, among other brokerages. They have over 300,000 agents, or about one-fourth of the members of the National Association of Realtors. So these are real people doing real business every day, not in a Yale think tank. Realogy reported that their average price in 2007 was down 1%, right in line with the NAR and OFHEO data. Again Shiller alone points to much more calamitous and foreboding results. Is there a reason why?

Some think it may have to do with methodology. Shiller and OFHEO’s are both repeat sales indexes whereas NAR’s data and that of Realogy take all sales volume and divide it by unit sales to get an average price and then figure out the median. Still, even using different methodologies, three out of four give one clear answer, that prices have fallen about 1%, while Shiller points to a 9 times greater fall.

The Manipulation
Shiller issues national press releases monthly but his index is anything but national unlike OFHEO, NAR and Realogy’s data, Shiller covers completely only 8 states and partially another 13. He has no data from 29 states. The eight states completely covered are among the weakest in the nation. The Wall Street Journal wrote several weeks ago that Shiller’s index may be negatively biased.

Shiller claims to cover 20 markets however, Shiller does not report on cities, but on MSA’s, short for Metropolitan Statistical Areas. This leads to some remarkable distortions.

For instance, Shiller claims New York prices fell 5.6% in 2007 versus an index created by Manhattan based Miller Samuel that says the average Manhattan price rose 17.6%. The two are reporting apples and oranges but which gives the more correct impression? Miller Samuel tracks coop and condo sales in Manhattan and Manhattan is what most people think of when they think of “New York.” Shiller’s index, expressly excludes condominiums and coops which account for 1/3 of New York City sales and 99% of Manhattan sales. Thus, Shiller gives the impression of reporting that prices have dropped 5.6% in a place where he does not cover 99% of the sales and where prices have not dropped but risen, substantially.

Even more perversely, Schiller’s MSA for “New York” tracks sales in Putnam County, two hours north, and single family home sales in Bergen County, New Jersey and home prices out on Long Island. Trailer park sales in Putnam County are in his “New York” index, but NOT Manhatten condos and co-ops!

The Recognition
Criticisms of Shiller’s inaccuracies are growing. RealTrends, a national industry monthly, ran its January headline “Case Shiller Index Exposed” and ran a synopsis of a paper done by Andre Leventis of OFHEO in which it chronicles the “flaws in Case-Shiller that are traceable and have a huge impact on the variance between their reports and those of so many other reports, including NAR’s and our own.”

Lawrence Yun of the National Associations of Realtors (who was named by USA Today as one of the top ten economic forecasters for his accuracy) has ratcheted up his criticism of Shiller. Yun calls Shiller’s index a “total distortion of market conditions based upon a small selection of falling local metro coverage.”

OFHEO has also chimed in by indicating that 70% of markets nationwide are not falling but actually rising.

The bottom line is the best advice is to know your individual situation, your local market and weigh the pros and cons of buying and selling for -you to make the decision for your individual situation.