Mount Airy Trends

Being located in Erdenheim, just outside the city limits, we are frequently asked to appraise properties in northwestern Philadelphia, especially Chestnut Hill, Mount Airy, Roxborough and Manayunk. 

The other day we received our first question for the Ask PAB! section of the site.  It was submitted by a local agent who works primarily in the northwest section of Philly.  She typically deals with entry level and first time buyers.  For that segment of the market, Mount Airy offers a great selection of housing options for her clientele, in a wide range of price points and design styles.   It has very appealing housing stock, access to transportation, shopping, proximity to Center City and the suburbs and very unique community atmosphere.  Her question was simply:

 “How have Mt. Airy twins and rows been performing over the past couple of years?”

Below is a chart of the sales of 3-4 bedroom twins and rowhomes in Mt. Airy from January 2008 through December 2010.  Click on the chart to enlarge.

The blue dots indicate the sales of 3 bedroom homes; the red dots represent the 4 bedroom sales.  Our sample produced 341 sales of 3 bedrooms and 105 sales of 4 Bedroom homes, in Mt. Airy, during that time period.  The green and yellow lines depict the linear sale price trends for 3 and 4 bedroom houses, respectively.

The trend lines indicate that both 3 and 4 bedroom homes are moving downward.  However, it appears as though the 4 bedroom properties are experiencing a deeper shift that the 3 bedrooms, which are riding a flatter trend.  This is likely due to the fact that there are fewer 4 bedrooms homes and, as a result, fewer 4 bedroom sales.  With a smaller sample, it is easier for a few sales to influence the trend.  Conversely, with a greater number of samples it is less likely that a handful of sales to move the trend so dramatically.

If you have a question about real estate markets and trends in the Philadelphia region, please visit our Ask PAB! page to submit your inquiry.

Share

Manayunk, Philadelphia

The Coyle Group - Manayunk, Philly

We’ve received a number of calls from real estate agents in the Philadelphia market, including Montgomery, Bucks, Delaware and Chester Counties who have been inquiring about our Listing Appraisal Service.  Many have asked to see some case studies.  We thought it was a great idea and will be posting Listing Appraisal case studies from time to time.

Our first Listing Appraisal Case Study involves a house located in the popular Manayunk section of northwest Philadelphia.

The agent called The Coyle Group to help revise the list price for the house.  It had been on the market for over 150 days and the showings had pretty much stopped.  The agent was hoping that an objective appraisal might help convince the Seller to lower the price to be more competitive and hopefully get the house sold.

One of our certified appraisers inspected the house, researched the market and prepared a report for the agent and Seller.  The appraisal results indicted that the house was priced about 7% higher than comparables homes in the area.  It wasn’t competing.The Seller lowered the price and the showings picked up, again.  The house was under contract within 10 days of the price change.  The contract price was within $2,000 of our appraised value.

To find out how TCG can help you with your listings visit our Listing Appraisals page

Share

The Roxborough Row

 

Philadelphia is known as a city of neighborhoods. When Philadelphians meet one another for the first time it’s not long before someone asks “what neighborhood are you from?”

Neighborhoods can be as small as a few square blocks or cover large sections of the city. One such neighborhood is the Roxborough section of Philadelphia. It occupies much of the northwestern portion of the City abutting Montgomery County, along with Manayunk and Chestnut Hill. It has always been a solid, working class area with strong family values and sensibilities.

The staple of the Roxborough housing stock is the three bedroom, single family attached rowhome or townhouse. Many were built to satisfy the housing needs of the local factory workers and to keep up with urban sprawl. Depending on which part of the Boro you are talking about the homes were generally built between 1865 and 1970. These are still very popular housing choices for first time homeowners and investors.

Below is a chart of the sales activity of the typical 3 bedroom Roxborough Row over the the past four quarters (2009 Q4 – 2010 Q3). As you can see, the number of sales spiked to 36 in 2010 Q2. This is a direct result of the tax credit that was being offered to first time homebuyers. The three bedroom Roxborough Row was essentially made for this program due to its attractiveness to first time buyers and those targeted buy the tax credit program. You will notice that in 2010 Q3, after the sunset of the credit, sales of the Rows dropped off by more than 60%, which was just where sales were prior to the credit program.

The next chart compares the Average and Median Sale Price for three bedroom Roxborough Rows over the same time period. In 2010 Q1, the Average Price spikes up to $271,042 despite only 12 sales during that quarter. The reason for the skewed average is two or three higher sales of newer townhouses that pulled the average up. Note that the Median Sale price tracks right along with the other quarters. The Median Sale Price for Roxborough Row has hovered between $204,900 in 2009 Q4 to a high of $214,500 in 2010 Q1. In 2010 Q2, the median began to settle into a more traditional trend eventually getting back down to $205,250 in 2010Q3…almost even with where it was in 2009Q4, prior to the tax credit.

It goes to show, that despite government interference with credits and incentives, the markets will correct themselves. It also goes to show that the Roxborough Row is the backbone of this market and can withstand outside market influences. Perhaps that’s why it’s been around for so long and continues to show consistent and measurable value.

Share