As this blog has previously reported, the Philadelphia residential real estate market has generally speaking been one in which sellers can set whatever price they want and buyers will generally pay it what is being demanded.
There is one exception, however, and that is with respect to condominiums, and specifically those that are built as high-rise towers. Although there are still attractive to older people with a lot of money but who do not want to own a full house, younger adults seem to be looking at either delaying ownership of real estate altogether and continuing to rent. Others who do choose to buy usually opt for a starter house rather than a condo.
What this means is that in the wealthiest parts of town, where condos can go for millions of dollars, prices have recovered fully and then some. However, in other parts of the city, prices remain well below, sometimes approaching 50 percent below, where they were when the last real estate bubble burst in 2008. Across the city, the sale prices of condos is still down 17 percent. Thus, despite there being some improvement, the recovery of condo sales is behind relative to the rest of the market in the area.
What this means for buyers is that, if they are interested in a condo, there still might be some good deals out there that could make for not only a great place to live but also a good investment However, as with any real estate deal, there are some complicated legalities that often have to be observed. There are also special considerations when one is buying a condominium. These legalities are often best discussed with a qualified Philadelphia-area real estate attorney.
Source: The Philadelphia Inquirer, “Philadelphia’s condo market lags behind city’s housing recovery,” Caitlin McCabe, Aug. 30, 2017.