Reports: Housing Prices Maintain Footing

HARRISBURG, PA-Residential prices in the Philadelphia market are holding up better than most so far in 2008, say a pair of new reports. However, another study suggests that the commonwealth as a whole is starting to experience some of the housing slump that has made a deep impact elsewhere in the US.

Among 25 major metropolitan areas, Philadelphia ranked eighth in maintaining its year-over-year price per sf, according to New York City-based Radar Logic’s newly released RPX Monthly Housing Market Report for March. The metro area’s PPSF of $149.13, for singlefamily and condominium units, was off 5.3% from March 2007, and up 0.5% from Feb. 2008. The five lowest-ranked metro areas, all with year-over-year declines of 22% or more, were all in the West. Only one metro area’s PPSF saw an increase: Milwaukee, up 2.8% year over year. Michael Feder, CEO of Radar Logic, was not available for additional comment by deadline.

In the eight-county Philadelphia region, Q1 ’08 home prices were about 4.1% above what they should be, according to Global Insight, an economic forecasting service based in Lexington, MA. By contrast, prices in the metro area were considered overvalued by 10.1% in Q1 ’07, according to Global Insight’s “House Prices in America,” which looks at housing valuation in 330 markets across the US. Currently, average singlefamily home prices in the Philadelphia region are $235,200, compared to $236,300 in Q1 ’07. A Global Insight spokesman declines to comment further.