When the market hits a rough patch, the outlying areas are the first to notice the change in terms of demand and therefore pricing. Those “B” areas are usually the last to rebound in terms of demand and prices when the market picks up speed. There are exceptions to that rule of course, but anyone would have a tough time arguing that Rittenhouse Square has the fluctuations in demand during the high and low parts of the Center City condo market when compared to our “B & C” inventory. There is indeed something to be said about the “location, location, location” saying.
But when the market is in full swing as it is today and buyers outnumber sellers, we see the “B” inventory pull up the rear with a real sense of urgency and demand. There are no less than a half dozen condo buildings around town that have had some exceedingly impressive sales….sales where no prior sales have occurred for the past say two years. As the core of our Center City condo market strengthens, so does our outlying areas and with that, our “B” inventory.
Once overlooked, now being looked over
The resale prices in some of our “B” locations is striking as we see values “stair-stepping”,where one sale builds upon the one prior and prices stair-step up in clear and rapid fashion. We can see that trend throughout the Center City condo market and many buildings that had no traction even a year ago are seeing wonderful attention in today’s market.
I find the lack of talk in the general Real Estate community concerning the eastern portion of 19123 and the northern portion of 19107 to be surprising, to say the least. Proportionally, these are our newest growth areas in terms of value.
Believe me. I’m not making this stuff up.