Article

The Philadelphia condominium market is experiencing an over-abundance of supply and a sharp decline in sales compared with recent years but, despite that, real estate agents and developers continue to see buyers and sellers strike deals. Roughly, 1,800 Philadelphia condominiums were on the market at the end of last year, according to a survey of those, the deal closed for just 5 percent in the fourth quarter.

That was off from the midyear, when about 2,300 condominiums were on the market and nearly 10 percent of that inventory sold, or in the third quarter of 2006 when nearly 15 percent of about 750 condominiums listings closed. The data do not paint a complete picture of the downtown Philadelphia condominium market. The Multiple Listing Service information does not include conversions and new construction .Trying to get a handle on the Philadelphia condominium market is like trying to hit a moving target, as it is difficult to see it against the background.

Prices have also dropped but by how much are difficult to assess because the average price per quarter bounces around. Any free upgrades or closing assistance a developer may throw into a Philadelphia condominium to sweeten a deal may not factored into a final sale price though it does essentially represent a price reduction. The Philadelphia condominium market, short term, looks very tough but long term it looks very good. Short term, there is so much supply in the market and so much for sale that we have too many units facing too few buyers.

On the upside, Center City has gained in population in recent years, with new jobs and the overall vibe of the city remains positive. There has been over-announcing of projects but there have not been over-building. The general sense is things are still moving but not at the accelerated pace of two years ago. A strong regional demographics as well as statistics that indicate 85 percent to 90 percent of Center City Philadelphia condominiums are owner-occupied. If there is a huge downturn in the national economy, no one is immune to that.

Philadelphia neighborhood locations are the priciest, sought after, and are speculative in nature so here the affect is first here when the market softens. In those areas, new construction is abundant. Recent interest rate cuts have helped get first-time homebuyers into the market. A challenge comes when suburban empty-nesters have a difficult time selling their

Main Line home in this market and are held up making a deal to buy downtown. The main city center continues to be active. There are projects adding eight additional deluxe Philadelphia condominiums to a three-story addition, called Top of the Par, they are constructing atop of the building. The top unit has already sold at reduced but realistic prices. There is also a tight luxury market. There are more buyers than product. That has caused some Rittenhouse properties to garner multiple bids. An owner of a Web site that focuses on Center City condo listings, experienced weak fall and winter sales up until the day after the Super Bowl.

For-www.newcondosonline.com

Source-http://philadelphia.bizjournals.com/philadelphia/stories/2008/02/25/story1.html

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