Kevin Gillen’s 2008 Q4 report on the Philadelphia housing market indicated that both Philadelphia house prices and sales accelerated their decline this past quarter. The typical Philadelphia home fell in value in Q4 by an additional 3.3% on a quality- and seasonally- adjusted basis. When added to previous price declines, Philadelphia house prices are cumulatively down 10% from the housing market’s peak of just over eighteen months ago. The number of homes that actually sold under arms-length conditions in Q4 stood at just over 3,400; which was a dramatic 25% drop from Q3 and the lowest level of home sales since 2002 Q4.
Although Philadelphia’s housing market continues to deteriorate, it is at a rate far less than most other major U.S. cities. According to Case-Shiller MacroMarkets’ composite house price index, house prices have fallen by an average of 25% in the ten largest U.S. cities, compared to only 10% in Philadelphia. Compared to other cities in Case-Shiller’s index, seventeen cities have experienced cumulative price declines that are larger than Philadelphia’s, and only three cities have experienced cumulative price declines that are smaller than Philadelphia’s.
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 Philadelphia House Price Indices, 2008 Q4
Philadelphia House Price Indices: Technical FAQ and Documentation |
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