News & Press
Philly Real Estate Officially ‘Very Hot,’ Hits Record
The Philadelphia housing market has fully recovered from the crisis of 2008 as the average price of a home in the city achieves record-high value, according to a Drexel University report.
The Lindy Institute for Urban Studies at Drexel tracks a housing price index of 473.5, surpassing the previous high of 466.9 in 2007. The HPI is a broad measure of the movement of single-family house prices.
Philly Real Estate: Prices, Sales Surge
The median sale price of a single-family home in the city rose to $143,000 from $117,500 a year ago, according to the Lindy Institute’s Kevin Gillen.
“The increase in the House Price Index to an all-time post-recession peak is not merely symbolic, but is also an important economic and psychological milestone as well,” Gillen writes.
Meanwhile, home sales in Philadelphia continue to surge. Sales volume showed its best quarter since 2008.
AGA Developers’ South Square project in South Kensington is a good example of the market’s vitality. The first five units, phase one of the project, are all already under contract, though work on South Square has not yet started.
New Construction Driving Growth and Urban Revival
AGA Principal Sean Killeen was quoted by Philly.Com real estate reporter Alan Heavens as saying the surge in new home construction in neighborhoods like South Kensington and Fishtown is a major contributor to the sale price boom.
Of the 20 largest cities in the U.S., Philly is one of eight that have seen a full recovery from the recession that began in 2008, with prices moving into “net positive” territory. The others are Boston, Charlotte, Dallas, Denver, Portland, San Francisco and Seattle.
It adds up to the latest Zillow ranking for the Philadelphia market: “Very Hot.”