Suburban Philadelphia Real Estate News

                      Season's Greetings!

To Everyone - Enjoy all the Season has to Offer!

One of the great (and least often appreciated) things about a long established city is its well developed public transportation network.  Philadelphia and its suburbs are no exception.

Before the widespread use of the automobile, one of the key advantages that came with city living was its easy access to public transportation both within and around the surrounding area.  Philadelphia has always been at the forefront of transportation development.  Originally dependent primarily on river transportation, it quickly benefited from early road, rail, and canal development due to its prime East Coast location.  This was hastened by the state when Pennsylvania created the Main Line of Public Works which opened in 1834.

Beginning in the 1840s, Philadelphia continued to build on its strong East Coast position, as the Pennsylvania Railroad, headquartered in Philadelphia, developed one of the finest rail systems in the world.  This provided easy access for Philadelphians and their businesses to connections throughout the country.  The railroad was a major economic force until its eventual demise in the 1970's. 

Today, rail remains a critical transportation component both locally and regionally.  In Delaware County, the original Main Line still runs across its northern border through Radnor township.  Running along its southern border, the all important Northeast Corridor continues to connect the major northeast coastal cities from Boston, through New York, Philadelphia, Wilmington, Baltimore, and down to Washington, DC. 

Concurrently with the development and growth of intercity rail, demand grew for local transportation options as well. These were answered by the development of local train, trolley, and other light rail options. The first horse drawn public transportation appeared in 1831, the first passenger train service arrived in 1832, the first electric trolley line arrived in 1892, and the first bus lines followed in 1923.  Over time, these merged, went out of business, or were replaced by other forms of transportation until the final consolidation by the government with the advent of SEPTA.

SEPTA was founded in 1964, and by 1983 it had responsibility for all the public transportation systems within the Philadelphia region. Today it is the 5th largest public transportation system in the country.  According to SEPTA's web site, the system includes, rail, light rail, bus, and trolley systems spanning 316 stations/bus terminals, 2664 vehicles, almost 9000 employees, and has a 325 million annual ridership.   The system covers Delaware County with 2613 Septa stops including 54 rail stops on 3 regional rail lines and multiple trolley/high speed rail lines.    These rail connections are concentrated in the eastern, northern, and southern areas of the county while the central and western sections are primarily accessed through bus service.

Today this network provides easy commuting options both within the county and to downtown Philadelphia and continues to be a major benefit and draw for people living, working, and enjoying all that the area has to offer. In the future, I will be highlighting major stops of these rail lines to provide a better feel for the individual communities and their development.

It happens to all of us. 

You downsize from a five bedroom house to a three bedroom condo.  You change from a two story colonial to a multi-story contemporary.  You get your first home and the two bedroom apartment furnishings with the egg crate shelves just don't make it.  In each case, you need a change of furniture.

Sometimes you need an entire house, at other times you may need just an accent piece - but you always have the same problems with where to go for the new furniture and what to do with the old.  Well now, beyond all the new furniture store options and rather than trying to wade through a thrift store, you have another alternative to consider.

Hidden in Wayne and open only once a month is Random Pieces.  Whether you are buying or selling, you may want to give Chip a call.  He can explain it best:

Located behind 120-122 Lancaster Ave in Wayne, they open once a month so buyers can come and peruse the latest finds.  It can be an eclectic collection ranging from single item tables or sideboards to full furniture sets and everything in between.  Items vary but they try to maintain a mix for every room in your home.  They can also buy your quality furniture from you to ease the transition if you may be moving, downsizing, or may simply need a change.

Considering a move?  Thinking of something a little bit different?  Need to get rid of some of the existing furnishings? Trying to save some money?   Random Pieces may be a good place to start - and they are local!

The last post on pricing, sales activity, and overall trends in Delaware County, PA raised the question of whether we were seeing the same trends region wide.  

Short answer: Yes.

In New Castle County, Delaware, there were $74 Million dollars worth of properties sold in November consisting of 302 properties with an average price of $245,000 per the TrendMLS system market statistics.   Compared to earlier sales:

   Nov sales were down 38% from the 2008 avg sales thru Oct
   Nov sales were down 51% from the 2007 average sales/month
   Nov sales were down 69% from peak sales rate in June 2006

We saw close to the same sales rate($76 Million) in January 2008.  Prior to this, you would need to go back to Feb 2002 to see a lower sales volume. 

On a more local level, if you look at the Hockessin/Centreville/Greenville area, there are currently160 homes on the market with an average monthly sales rate of 18 units (dropped to 14 in November).  At this monthly rate, it will take over 8 months to sell out of the current inventory - assuming we recover toward the monthly average sales rate.

In Chester County, PA, total sales were $101 Million consisting of 295 units with an average price of $344,000.  Compared to earlier sales:

   Nov sales were down 34% from the 2008 average thru Oct
   Nov sales were down 45% from the 2007 average
   Nov sales were down 69% from the June 2005 peak.

Echoing New Castle County, sales were actually lower in January of this year at $95 Million.  Prior to January, we last saw this sales volume in February 2001.

Bottom line: We do seem to be seeing the same trends throughout the region. 

Again, once financing issues resolve themselves and people can have some confidence on the future rates and programs, we could see a rapid build up in activity as the market responds to pent up demand.  Both the time to resolve the financing issues and the increase/decrease in inventory on the market will dictate the direction of prices once sales pick up, but at this point pricing seems to be holding up reasonably well.

As I mentioned earlier, if you are thinking of buying or selling in the near term, now is the time to get ready.  I would expect the new administration to act fairly quickly once in office and you should be prepared to take advantage of any new opportunities as they appear.

As always, if you need any additional information or have any comments, please feel free to contact me anytime.

(All statistics from TrendMLS Market Statistics and believed accurate but not guaranteed)

The numbers don't add up.

After reviewing the November statistics in Delaware County Pennsylvania, just west of Philadelphia, there is really not enough local sales activity for the numbers to indicate any clear trends.  Depending on the area/township viewed, you could demonstrate the market moving in almost any direction desired.  Normally, you can look at detailed statistics at the township level and generalize for the county and vice versa - not accurate at this point.  So now it is probably better to look at the bigger picture.

The important dynamic here is "How is the overall market doing?", "What impact has the overall economy had on the local activity?".   This is where we have seen some dramatic changes. 

In Delaware County, PA for November, properties settled with a total value of $64 Million per the TrendMLS system market statistics.  This consisted of 275 units sold with an average of 76 days on the market  and an average sale price of $247K.  To put those numbers in perspective, we had been averaging about $150M/month sales from 2005-2007, or in comparison:

   Nov sales were down 43% from the average in 2008 through Oct.
   Nov sales were down 55% from the 2007 average sales/month.
   Nov sales were down 71% from our June 2005 peak sales month.

The last time we saw this level of dollar sales volume was February 2003 (February figures are usually the lowest for the year since they are roughly based on sales in late Dec/early Jan).  The last time we saw only 275 units sold was before January 2000 (the earliest our records go in the TrendMLS system).

What should you do? - get ready.  As shown before, prices are generally holding up reasonably well - we just need some stability on the financial side before people will have the confidence to move forward. There continue to be many homes on the market and many ready and able sellers and buyers "when the time is right".  There also appears to be quite a bit of cash lying on the sidelines from investors and first time home-buyers taking a wait and see attitude. 

This is creating some interesting market dynamics and opportunities.  Without a doubt, there is increasing pent up demand.  People still need to move for personal or business reasons.  If the interest rates continue to decline, at some point, this will reignite the market with an unknown response to price levels.  We saw this on the west coast where after the market had been declining for years, once it turned, the prices recovered within 18 months.

What happens now?  As a buyer or seller, if you are in the market for the long term, this looks like a good time to be testing the waters.  With a new administration coming, we can expect them to do everything possible to boost demand.  If successful, we could see a very quick turnaround in both activity and prices toward the second quarter of next year.  The next few months could be a great time to make a move or prepare to capitalize on any new opportunities.

As always, if you have any comments or need any more details, please let me know.

It's really no wonder that Nether Providence, Pennsylvania (aka as Wallingford) was ranked in the Top Ten Places to Live by Money Magazine in 2007.  It really is an ideal combination of location, schools, and proximity to all that the area has to offer.  Housing is affordable, the schools are great, and it's only twenty minutes from downtown Philadelphia.  In addition, although it does not have a downtown, it is immediately adjacent to the thriving county hub of Media. 

The real estate market is diverse here - from small condos to large estates.  It was also one of the earliest areas to be settled during the founding of our country due to its close proximity to Philadelphia and the Delaware River so you can find a wide variety of homes reflecting the changing years.  Early on it was considered a prime industrial area with plenty of water and adjacent to the then bustling commercial hub of Chester.  Since those days, it has become a primarily suburban residential area with easy rail and highway access to both Philadelphia and Wilmington.

Today, one of its earlier residential buildings is on the market.  Thomas Leiper came to America in 1764 and developed various mills in the narrow valley of Crum Creek.  He also built his home and those for his staff and workers in the area.  Part of his early plans included the Foreman's house built about 1830.  Through the years it has only had three owners and has been used variously as the Foreman's House, a residence, and most recently a gallery.  Nick DeLuca with Long & Foster Real Estate currently has the home on the market for $299,800. 

Originally listed for over $600K, he notes that the home is full of character and although it is surrounded by residential properties, it is currently zoned as industrial which could allow any future owner a great deal of flexibility for future use as approved by the township.  In addition, since it has been expanded with a full gallery/work space on the first level, an owner has tons of flexibility as to how the interior spaces could be used most effectively for home or business.

Please find attached a video for more information: 

The home is truly a great combination of history, modern day conveniences, and space that can lend itself to many imaginative uses for the buyer looking a special home.  If you have any questions or need any additional information, please do not hesitate to contact me.