Suburban Philadelphia Real Estate News

Well - it looks like we may be losing our Congressman but possibly gaining a new Senator.  Delaware County PA is once again lining up to be a key battleground in the 2010 election on the national stage.

Last week, the local Delaware County Times reported that "Sestak (is) All But In For Senate Race".  What does this mean?  What are the local impacts?  Too soon to tell, but let's put a little perspective on it.

Joe Sestack is currently the local Pennsylvania US Representative in Congress (Brady represents a small portion of southeastern Delaware County).  He won his 2008 race last year against Republican W. Craig Williams by a vote of 209,955 (59.6%) to 142,362 (40.4%) .  He continues to be popular in the local area and won his seat originally by beating out longtime local Representative Curt Weldin in 2006.

Delaware County itself is trending increasingly Democratic.  As of May 1, 2009, from an over 2:1 majority in the early 2000's, registered Republicans now number 189,977 (46.7%) in the county versus 172,946 (42.5%) for the Democrats and 43,600 (10.7%) for other parties.  In the State Senate, the county elected 1 Republican, Dominic Pileggi, and 1 Democratic, Daylin Leach, in the 2008 races.  For the Pennsylvania State House in 2008, Delaware County elected 5 Republicans, 5 Democrats, and one who was represented on both tickets.  Bottom line: we're pretty well split down the middle but still leaning Republican.

Sestak's potential Senate primary competitor, Arlen Spector, won his statewide US Senate race comfortably in 2004 against Joe Hoeffel by 2,925,080 (52.6%) to 2,334,126 (41.9%) .  He was in a much tougher primary against Pat Toomey which based on the trending demographics he felt he would be unable to win against in a Republican primary in 2010.  He switched parties to the Democrats based on his feeling that he would have a better shot of getting through the primaries to the general election.

Sestak clearly doesn't intend to walk away.  According to the TPM website, the move has not deterred him and he is close to making a final decision.  This is certainly supported by his latest notes to his supporters.  Now it appears we are going to have a very competitive primary on the Democratic side rather than the Republican side.

Can he win?  Too early to say, but 2010 is already shaping up to be an interesting race in the local area.

Signs of Spring in the Suburban Philadelphia Delaware County Luxury Market? - Not quite yet.

After suffering the financial jolt that really took hold in October last year, it was expected that we would begin to see some clarity as the new administration arrived with fresh faces and new ideas.  Despite having since November to prepare, this clearly has not happened.  This has resulted in a falling financial market, a continued decline in consumer confidence, and no real apparent progress.  Until Washington shows more leadership, the luxury real estate market in particular will probably remain in the doldrums.

The Numbers: In 2008, there were a total of 93 luxury homes sold that settled for $1,000,000 or above in Delaware County Pennsylvania for an average price of $1,585,000.  Only 12 of these home sales occurred in the last quarter of 2008 after the financial markets began to deteriorate.  Since the beginning of 2009, although we expected to see an uptick in activity, we have only had 4 additional home sale settlements.

 As for Pending properties, there are currently 16 homes under contract with an average list price of $1,559,000.  Of these, ten were under contract prior to October 1 and all ten are new construction homes scheduled to close at various points into 2010.  Of the remaining six homes, four received contracts in 2009.  In a key shift away from new construction, five of these 6 properties were existing homes.  Based on the 4 settlements above and 5 additional properties scheduled to close before the end of March, we are looking at 9 total sales in the first quarter 2009 vs 18 sales in the first quarter of 2008 - down 50%

Today there remain 156 homes currently listed on the market with an average price of $1,756,000.  These homes have an average of 199 days on the market, up slightly from 195 in the December update.  Based on the current sales pattern, we have well over a years' worth of inventory on the market.

The Bottom Line: As I mentioned in my last luxury update, we are well below a "normal" sales rate, and as a result there must be rising pent up demand.  The problem remains, however, that with the current financial uncertainties overhanging the market, there is no real catalyst to encourage people to make a move now.  Without some clear direction, people will tend to hold off on making major decisions.  With the large existing inventory, this could lead to additional price deterioration in the near-mid term, but this could also change quickly depending on the moves coming out of Washington.  At this time the market remains basically in a holding pattern.

(All information is from the TrendMLS System and is believed accurate but not guaranteed)

Welcome to the Wallingford Station on SEPTA's R3 Regional Rail Line connecting Center City Philadelphia Pennsylvania with Media/Elwyn in Delaware County.

This is the only R3 Regional Rail stop in Nether Providence PA and is one stop west of Swarthmore and the second stop east of Media. It is a great location for suburban commuters in the area with easy drop off/pick up access.

The station itself is located in a largely residential area just east of Providence Rd/Route 252.  Route 252 is one of the major north-south routes in the county beginning in Nether Providence and continuing through Newtown Square up towards Paoli in Chester County.  There is adjacent parking but this is a popular stop with relatively limited parking so this is a better drop off location for local commuters.  South Media is just to the northwest, Furness Park is to northeast, Wallingford Elementary School is just to the south, and the Wallingford Township Office is southeast.  For a better feel, take a quick look at the video:

The prices for real estate in Nether Providence have held up fairly well.  The area contains predominately single family suburban homes.  After rising from an average sales price of $286,000 in 2005 to $326,000 in 2006, prices have been settling downward to $320,000 in 2007, $311,00 in 2008, and $307,000 over the last six months.  This is much better than many areas in Delaware County.   Activity has also dropped a bit from 198 homes sales in 2006 and 199 home sales in 2007 to only 163 sales in 2008 and 64 properties sold in the last six months.  There are currently an additional 14 properties under contract at an average list price of $341,000 and 97 properties on the market for an average list price of $391,000.

As always, should you have any questions, please do not hesitate to contact me.

(All statistics from the TrendMLS System and believed accurate but not guaranteed.)

Welcome to the Penfield Station on SEPTA's Route 100 High Speed Line connecting the 69th Street Terminal and the Norristown Transportation Center. 

Penfield Station is actually the third station west of the 69th Street Terminal in northeastern Delaware County.  Located on the eastern edge of Haverford Township, this station is a convenient stop for commuters generally from the Penfield section of Havertown and the Penn Wynne section of Montgomery County. 

This is one of the smaller stations on the line and has very limited parking.  It is an ideal local commuter station allowing the residents immediate access with minimal driving.  All rail stops are on a requested basis right at the platform.  The eastbound platform is adjacent to the small parking lot but it has plenty of space for dropping off or picking up passengers. 

The surrounding area is primarily residential single family homes with some twins mixed in.  The closest commercial is generally along Township Line Avenue just to the east of this residential section or toward Brookline and along Darby Rd to the south and west.  The average sale price for homes in Penfield for the last year was $366,000 and there is currently one active listing.  Just to the north in Penn Wynne Montgomery County, the average sale price for the last year was $328,000, but this reduced price reflects a much greater concentration of twins in the area. 

 As always, should you have any questions, please do not hesitate to contact me anytime.

(Above information from TrendMLS System and believed correct but not guaranteed.)

Concerned about development in Suburban Philadelphia?  Worried about revitalization of a commercial area?  Looking at the impacts on the surrounding residential areas? Are you thinking of starting a business?  Considering a move into the state and need to know what resources are available?

Last night, State Rep Greg Vitali hosted a free public Business District Revitalization Workshop at the New Manoa Elementary School in Havertown for anyone interested in improving and revitalizing the local business districts.  In addition to brief introductions by various elected officials, the presentations included five representatives from various organizations which covered the spectrum of resources available for communities and individuals for both private and public improvements.

In order of the speakers, we heard:
 - Toni Crawford-Major   Regional Director Commonwealth of Pennsylvania
        NewPA - State of Innovation - www.newpa.com/index.aspx
 - Julie Fitzpatrick   Special Projects Coordinator - Pennsylvania Downtown Center
        Pennsylvania Downtown Center - www.padowntown.org/
 - Laura Goodrich   Director of Marketing - Delaware County Commerce Center
        Delaware County Commerce Center - www.delcopa.org/
 - John Fleming   Lead Business Development Specialist - SBA
        SBA - Philadelphia - www.sba.gov/localresources/district/pa/phil/index.html
 - Glenn McAllister   Director - Widener Small Business Development Center
        Widener University Small Business Development Center - www.widenersbdc.org/ 

The above individuals highlighted the wide variety of sources of help and funding for many business, residential, and commercial enterprises.  The organizations demonstrated the importance and wealth of support that the State of Pennsylvania is providing to its citizens to improve both the business and residential environment in the state.  The above can be used throughout Delaware County and Chester County.

If you have any questions or need any additional information, I would encourage you to check out the above web sites and contact them with additional questions and to identify the appropriate contacts for your projects.  As always, if you need any additional information, please do not hesitate to contact me anytime.

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)