The market statistics reports for October 2008 and October 2009 for the Philadelphia region (the region Trend MLS services and reports) are in. In 2008 there was a much larger inventory of homes on the market 8,825. In October of 2009 that number dropped to 8,034. In addition, the average median sold price in Oct. 2008 was $130,000. In Oct. 2009 that number increased to $132,000. While these numbers aren't earth shattering, they do show some improvement in the market. Home inventory was down and prices were higher as well. Sellers are receiving between 91% to 98% of their asking price when selling. The average days on market for the city is 73. That number is down slightly from the 2nd quarter of 2009 at 79 DOM. All of these numbers show a slow recovery to the damaged real estate market in Philadelphia. The government's tax credits for first time buyers (and now to some sellers) has helped push up some sales numbers and has helped overall to stimulate the real estate market in our area.
I do fear some of the positive information in this quarter's report is a false sense of hope. The numbers are inflated because of the government tax credit. What will happen when the tax credit goes away? I don't know for sure, however, I think the market recovery will slow when the tax credit expires. Homes will continue to sell, just at a slower pace and possibly add to the market inventory. Thanks for reading.
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