House prices in Philadelphia decreased by an average of 4.2% last quarter. Home prices are still up 0.4% from a year ago, but the stalled growth from Q3 has turned into a more-significant decline in the fourth quarter.
With that in mind, will City Council and Mayor Michael Nutter settle on AVI rates that truly reflect the real-estate value of every home? If so, will those rates bring in lower revenue to the City than anticipated?
Overall, there were 3,164 arms-length sales of single-family homes this quarter. This is down 3.7% from the previous quarter, but still up 13.4% from the same quarter a year ago. Median price per square foot was $88.
There were 307 sales in the most-expensive category with prices over $200 per square foot, and 490 in the least-expensive category of $25 per square foot or less.
The number of home sales with values of more than $1 million continued its upward trend. There were 33 of these homes this quarter, up from 24 the previous quarter and 13 in the same quarter a year ago.
The median sale price of $120,000 represents a 5.5% decrease over the previous quarter, but an increase of 14.0% over the same quarter one year ago. Unlike the index value, the median price is not quality or seasonally adjusted.
Housing prices in the Central area of the city fell 6.0% from the housing market peak in 2007, but have recovered 5.5% from the 2011 trough. With a total population of almost 110,000 and a land area of 5.7 square miles, the Central District is one of the most-densely populated areas of Philadelphia. It is also one of the best-educated and most-affluent areas, with approximately two-thirds of residents over 25 holding a bachelor’s degree or higher, and an average household income of over $90,000.