Real NEastate: 2009’s declining home values

The real estate market held its own in Northeast Philadelphia last year as home prices and sales dipped in most neighborhoods, somewhat due to many foreclosures. But it looks like the market may be close to leveling off.

The average Northeast home listed for $173,000 in 2009 before selling at the average price of $161,500, dropping slightly from $166,400 in 2008. The number of sales also went down with just 3,073 homes sold compared to 3,161 in 2008. The average number of days on the market was 65 in 2009 — not much different than 64 in 2008.*

The Far Northeast had an average sold price of $213,600 in 2009 and the Great Northeast’s average sold price was $138,000.

The most notable difference in the numbers in Northeast Philadelphia from year to year is that in 2008 there were 6,300 homes listed for sale, but in 2009 there were only 5,102 homes listed for sale.

This made a big impact on the inventory accumulation as the number of months’ supply of homes has dwindled to four, moving the Northeast from a buyer’s market into a seller’s market, statistically speaking. Is a housing recovery on the horizon?

Looking forward, the Homebuyer Tax Credit will be a big boost to the Northeast Philadelphia real estate market in 2010. Job loss, mortgage restrictions, tougher financing, and the impact of the economy, however, will play the leading role in overall market conditions.

Look for home sales and home prices to start to level off for the next few years.

*Statistics are based on data from TREND Multiple Listing Service.

Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.