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Report: Center City Residential Remains Strong

PHILADELPHIA-A recent study finds that Center City is holding its ground in the residential market, despite the downturn.

By Brianne Harrison | Updated on September 04, 2008

PHILADELPHIA-Although the housing market’s in a slump and headlines nationwide are focusing on foreclosures and the crisis in the credit markets, a new study by the Center City District finds that the housing market in Center City is as strong as ever. “Obviously there’s a national problem and we’re all affected by it,” Center City president and CEO Paul Levy tells GlobeSt.com, “but while everybody is looking at the national news, they forget to look at local trends. When we took a look at those, things are much better than everyone thought. We were delighted to see good stability here.”

According to the report, more than 10,000 new housing units have been constructed in Center City since 1997, averaging 1,155 new owner or rental units per year. Housing prices in Center City have appreciated by 246% in the last decade, and the average home sales price, at $383,000, is 39.2% higher in the first half of 2008 than it was in 2003. That price is, however, slightly lower than it was when the housing market peaked in 2006.

“Compared with the peak of the market in 2006, when there was a lot of product and a lot of velocity, then yes, some housing is staying on the market longer and being sold for less,” Levy admits. “But we went back to 2003, when the market was more normal in terms of the volume of production and sales velocity, and we saw that housing values are significantly above 2003 levels, and homes now are only staying on the market an average of eight days longer than in 2003, when the atmosphere was much more upbeat.”

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