Condition Over  Location? /                                            Neighborhood Comp Sales April 2014 /     
                                                        Why IS There No  &%#$  Inventory??      

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Neighborhood Comparable Data April 2014

Screw "Location, Location, Location"

In Center City It Can Be All About

"Condition, Condition, Condition."
When enthusiasm drips from a buyers mouth-
Every "Ohh" is worth $5,000
and every "Ahh" is worth $10,000
Location is always going to be a determining factor in price as well as long term value retention. But there are mitigating factors in the Center City condo market that are going to dilute the power of a strong location in driving prices over the long haul. That major factor would be interior condition and the visual impact of any given Center City condo.  Here are a few factors that may help the power of a condo's condition to play a huge role in determining value:
Disbursement Of Wealth- Twenty years ago, if you had $1,000,000 you bought on Rittenhouse Square-period. Today, we will find that every neighborhood has broken the $1M barrier.  And it is getting much easier for buyers to find high end condo product in some locations that might have been unfathomable even five years ago.
First Time Buyers and Empty Nesters- Clearly the dominate driving forces in the Center City condo buying segment. AND what do they both have in common? They both want a strong interior condition as neither seem to favor the condos that need work. Trying to get either to buy a fixer upper is an uphill battle (generally speaking).
Everything is out the window when buyers fall in love- You would pretty much have to be new to this planet to not know that concept. I have found that most buyers buy with their eyes. More often than not, buyers will forego the strength of the location in order to buy the condos that really strike a visual chord.
In no way should this argument be a vote for a weaker location than perhaps what you have in mind. However over the long haul, you might be surprised to find just how important condition is to the overall value retention of your condominium here in Center City.  Ugly is an 800 pound albatross that can and will drive down your value like no other condominium attribute- And it may not matter if you are sitting in the perfect location. To underestimate the value of strong interior and visual appeal would be to underestimate the overall value of any given  
Center City condominium.


No Inventory?

We Will Remember 2014 As The 
Year Of No Inventory

In my opinion, the cause is easy to pinpoint.
We are just now coming to a time in the market where prices have begun to rise. However, they have not risen to a point where many sellers have a ton of equity into their condos.
As a result, they either choose not to sell or simply cannot sell because they do not have the equity to move into a new home. This creates a bottleneck of demand- buyers are buying but there is not enough product on the market to meet that demand.
We see this phenomenon once every 7 years or so when the market shifts from a buyers market to a sellers market.
Look for the situation to change next fall as more sellers gain the equity needed to move into a new home and list their current properties.
  Although I don't mean to be the "big brain"....

We do have a fairly sizable amount of the 
Center City Condo inventory for our buyers....

Interpreting vague and unclear notions I hear from buyers and turning those random thoughts into condos.
That is pretty much what I do :-)


Mark Wade 
Berkshire Hathaway Home Services 
Fox & Roach

530 Walnut St. Suite 260
Philadelphia, Pa. 19106

We are currently in the best condo market that I
have seen since the height of 2007. 
Crazy competition and lots of fun!

 I would like very much to be your condo Realtor.

Mark 267.237.3404

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