While negative headlines regarding the nation's real estate market continue to dominate the news media, statistics regarding the Main Line real estate market tell a different story. 

While prices have settled back from their 2 yr peaks, the Main Line has not suffered the dramatic price declines suffered in so many other areas.  In fact, the median price of homes sold in the T/E school district in June, 2008 actually rose 8.50% vs. the same month last year, with homes in the $500,000 to $750,000 price range showing a slightly greater increase.  Homes in the $750,000 to $1 million price range, however, suffered more than average.

Median Price of Homes Sold*

T/E School District

2 yr Trends:  June, 2006- June, 2008

* Source:  Prudential Fox and Roach Realtors Home Expert Reports; statistics based on closed MLS transactions; each closing generates one transaction only.  Information deemed accurate but not guaranteed. 

So, while the Main Line real estate market is certainly not immune to the negative effects of the nation's economy, it remains more stable than many other areas.

Why?  First and foremost, home prices in the Philadelphia area never "ballooned" to unrealistic highs, so quite simply, there is no "bubble" to burst.  In recent years, prices in the Philadelphia suburban region increased steadily and strongly, but not with the runaway abandon seen in other markets.  Per Global Insight, a Lexington, Mass. economic-forecasting service, even at the market's 2006 peak, Philadelphia area prices were considered to be "overvalued" by just 15%.** This can be contrasted with peak prices elsewhere: San Diego's prices were more than 35% overvalued; Miami's were 52.7%.** In those areas, the "boom" was magnitudes greater, and therefore, much more dramatic corrections can be expected. 

Second and just as important, the Philadelphia region has a strong and diverse socio-economic base. Not being tied to one major industry or employer, the area can weather economic downturns with more stability than areas with a less diversified base.  The Philadelphia metropolitan area is home to 16 Fortune 500 companies, 88 educational institutions, and several of the nation's top-rated hospitals.  As further testament to the Main Line area's continued strong value, Chester and Montgomery counties were recently rated among the top 10 best places to live by Forbes magazine (6/30/08).      

** Source:  Philadelphia Inquirer, Alan Heavens, "Study Finds Home Values Fair"

NOTE: If you would like more information regarding home values in your area, please contact me at sue.fitzgerald@prufoxroach.com.  Home Expert reports can be customized by price range, school district, township or area.  These reports are available at no cost and with no obligation.