Philadelphia Housing Market - Looking Up !
Thank you to the Greater Philadelphia Association of Realtors (GPAR) for putting on a superb annual meeting this past week and bringing the renown Kevin Gillen in to speak about the the state of the Philadelphia Housing Market.
Gillen stated that home prices in 2012 will be up about 7 percent, taking away a good chuck of the 21 percent of value that has been lost during its peak. The good news with Philadelphia is that we rank very high for overall home prices decline from the peak (21 percent) in comparison to a lot of other Cities. Further, inventory is down substantially, condo sales look healthy and the luxury market is strong.
The concerns are the number of homes sold are still down substantially from 2006 and two policy items that will affect our local market in the year to come are: (1) the potential effects of the sweeping property tax increase with the Actual Value Initiative (AVI) and (2) the proposal from Councilman Wilson Goode who wants to change the tax abatement structure.
Speaking of tax abatement, the City is about to experience a windfall of increase tax receipts in 2015 and 2016 due to tax abated properties expiring from the boom in 2006. Those receipts will go from about $8 million to $40 million, with an expected receipts in 2020 of $120 million. Wow ! And the City wants to tinker with that ?
Below is a snaphsot of Gillen's presentation.
Personally, it was great for me to be there as I was invited to speak at the table "Blogging for Business" , one of my favorite topics to speak about! It is an honor to share my experience and my own success stories with my fellow colleagues.