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Jumpstart was pleased to welcome back Kevin Gillen, a Senior Research Fellow at Drexel's Lindy Institute for Urban Innovation, to present his latest quarterly Philadelphia Housing Report last month. Here are the key points of Kevin's report:
• The average price of Philadelphia homes increased by a tepid 0.3% in Q3 on a quality- and seasonally-adjusted basis. This is a deceleration from the previous quarter’s increase of 1.6%.
• Comparing current prices to those of one year ago, a similar pattern of deceleration is evident. The city’s general level of house prices is currently up 5.3% from one year ago (YoY). In the previous quarter, house prices were up an average of 6.9% YoY.
• But, despite a slowing in their growth, Philadelphia’s housing is still appreciating at a rate that is in line with their historic average. Since 1980, the rate of general house price growth in Philadelphia has averaged ~5.0% per year. But the current annual rate of house price appreciation is 5.3%, which is very close to the city’s traditional average.
• A simple look at the raw data indicates a similar pattern. Currently, the median house price in Philadelphia is $230,000, which is up by 4.5% from $220,000 one year ago. This is reasonably close to the regression index’s calculated YoY increase of 5.3%.
• Individual submarkets are also showing the same pattern of price changes as the city. YoY price appreciation is positive for all submarkets, but there was some slowing from the previous quarter.
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