Philly passes DelCo and CamCo in median house price

Discussion in 'Philadelphia Real Estate' started by billy ross, Apr 22, 2016.

  1. billy ross

    billy ross Well-Known Member

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    Or, El Sobrepaso.

    I've been watching this slowly build for awhile, but it's come together so quickly that it's breathtaking.

    Berkshire Hathaway HomeServices Fox & Roach, REALTORS

    Philly was the sick man of the region for years. Our housing values were so low that suburban values were multiples of ours. Then slowly we started to make up ground, eventually allowing us to pass rural counties, first Salem then more recently Berks. All the while I saw us gaining ground on Delaware and Camden Counties. Then 2016 hit and in one fell swoop we passed Delaware, Atlantic, and Camden Counties, while still making ground on our suburban neighbors.

    The market is speaking. If only we could allow each school in Philly to be the best that it can be, without worrying how that would be 'unfair' to kids in other schools, and thus allow our schools to reflect the fundamental diversity of this city, then we'd really take off.

    And I'm sure that the flood of expensive new construction in Philly is driving this. Great. We need more of it if we're going to solve our woes.
     
    #1 billy ross, Apr 22, 2016
    Last edited: Apr 22, 2016
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  2. Nytecat

    Nytecat Well-Known Member

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    I find this one to be a bit mind-boggling. Philly's poverty covers the majority of the city today while in the suburban counties most of it is still confined to Eastern Delco and Western Camco. Next time I see housing and income maps for these counties I'll have to take a closer look.
     
  3. Insoluble

    Insoluble Well-Known Member

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    Remember that this is just comparing the median price of properties sold. Those living below the poverty line are probably not buying and selling houses at as high a rate as those in the upper end of the income spectrum. It's also important to note that the median value is not effected by the extremes. So houses exchanging hands in $1 transactions to pass them to another family member have the same impact as houses sold for $100,000. On the flip side, a million dollar condo sale has the same impact as a house sold for 200K. In other words, this metric tells us almost nothing specific about housing at the lower and upper ends of the spectrum.

    Also, to say that poverty covers the majority of the city is not correct. The poverty rate is at about 26%, still way higher than it should be, but nowhere near 50%. It's going down slightly, but more should be done to accelerate decrease.
     
  4. billy ross

    billy ross Well-Known Member

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    Plus, wealthy people use more land than the poor do. If you were to look at a map of Philly, so much of the city would be taken up by the wealthy and by parks that a surprisingly tiny percentage of the city's land mass is taken up by the poor. It's counterintuitive, but check it out and you'll be surprised.

    And, while median does indeed give you the middle value, the fact that the median in Philly has increased so dramatically in comparison with our suburbs tells us something - that the city is healing, so much so that it's moving the needle.
     
  5. Nytecat

    Nytecat Well-Known Member

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    OK, that clears things up a little bit. And "poverty" was not the best word choice in my last post. Low income would've been a more accurate term. Still, Philly's median income has fallen over the last several years so it seems counterintuitive that housing values are rising which adds to the confusion.
     

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