Philadelphia Real Estate
Underlying Weakness in Center City Estate Market?
According to this MSNBC.com article by Bill Briggs real estate experts see underlying weakness in the housing market. Spurred largely by the $8,000 federal tax credit which expired on April 30th and historically low mortgage rates, sales in March and April were astronomical. Sales of existing homes increased 7% in March and an additional 7.6% in April however some experts believe purchase incentives pulled business forward which will result in a “July and August payback”. Still home sale statistics are predicted to be robust for May and June while the last of the federal tax credit buyers make settlement before the June 30th deadline.
It will be interesting to see what effect the expiration of the $8,000 federal tax credit will have on the Center City Philadelphia real estate market. It’s widely agreed that Philadelphia has been comparatively lucky and hasn’t felt pain like other major metropolitan areas. Currently we don’t have the glut of inventory seen in other cities and interest rates keep decreasing thanks to our European friends. The question seems to be will ultra low interest rates be a strong enough incentive to keep Center City buyers buying and Center City sellers selling.
Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog
Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106