Relevant Commentary, all information Philly (real estate and otherwise), Open Houses, Listings, Happenings, and More — by Jeff “City” Block
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I am always asked about the real estate market. Now as much as ever.
For years now, the answer was fairly straight forward. Super low inventory. Steady (and sometimes swift) price appreciation. Sellers’ market. The economy was robust and the stock market generally going up (even through the pandemic somehow). There are always nuances, of course, like houses appreciating more than condos, for example, but condos solid as well. For years, the city outpaced the surrounding counties in appreciation, and then that reversed during the pandemic. But the city real estate remained red-hot, nonetheless.
And even during this extended period, I always gave the same advice. You can’t time the market. You don’t know what is going to happen. No one knows. Not even real estate economists. Though most economists agreed that it seemed likely that both interest rates and housing inventory would remain historically low for some time.
Now, we have seen several changes. First, interest rates have come up, yet they remain at historically low rates. In fact, they have actually come up to where they were in the aughts, and still remain lower than in the earlier aughts (i.e., the hottest real estate market we have ever seen). But things are relative. When rates come down from 7 to 5.5%, they seem amazing. But when they go up from 4% to 5.5%, they seem high. Second, inventory is not as low as it was. The intense downward pressure on inventory has subsided and the inventory has stabilized and come up slightly. However, inventory remains well below what is considered balanced inventory that would take us out of a sellers’ market. And this is nothing like 2008 when inventory ballooned with foreclosures and other properties flooding the market.
Most economic forecasts predict that home prices will stabilize. Some say appreciation will continue but at a slower pace. Some say that prices will flatten. And a smaller percentage predict they may come down slightly. Likely, all of this is true, depending on neighborhood, type of home, and specific home features (like parking and outdoor space) and condition (as always, buyers prefer to avoid work, and will pay a premium for updated or renovated condition).
In the moment, it is also not possible to know exactly what is happening. I mean you can look at anecdotal evidence. In the past several weeks, I have had homes that have sold immediately, with multiple offers, at or above full price. And then I have had some homes that have not sold immediately and remain on the market. And by the way, this was case three, six, and nine months ago as well. And also two, three, and five years ago.
So I do not make bold and firm economic predictions (that is never a winning game), but I will give a few general thoughts:
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Philly home prices have been appreciating at a rapid rate and are at an all-time high. It appears the rapid rate of appreciation will not continue, and that is really a good thing for the real estate market and economy. Of course, homeowners always want prices to continue to go up, but if we now have a market where appreciation slows and prices remain fairly stable, it takes some pressure off buyers while also providing sellers with a strong base price coming off a period of solid appreciation.
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All markets go up and down, but most economists and economic indicators do not predict a bubble. They feel the fundamentals from 2008 are not present.
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I can say unequivocally that Philly remains a strong and desirable place to live.
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The national (and world) economy is experiencing high inflation, lowering stock indices, and massive supply shortages. Yet real estate markets (including Philly) have remained strong. Hopefully, this is a sign that if we move into a recession, that the real estate market will moderate and not make a significant downward move. Or that we avoid a recession and move into a recovery more quickly. No hot market goes on forever (this literally never happens). Hopefully we come in for a soft landing.
So in sum, no one knows what is going to happen in this world, with the economy, or any financial markets, including real estate. That is a fact of life, and the reason I always counsel my clients not to try and time the market. Instead, do what makes sense for you and for your family in the moment, and if you do that, you will be making the right decision. Mistakes typically occur when you try to time the market and do or avoid doing something because of what you think may happen. If your family is outgrowing your home, then time to move. If your family loves your home, then great to stay. Don’t speculate and try to outsmart yourself. If you have questions about your particular situation, please reach out to me.
All-in-all, I am generally optimistic for the future and on that note, I hope you have a great weekend.
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100 N 22nd Street #111
Brand New Listing
3 BD | Den | 2.5 BA | 1,765 SF | Rare, corner unit at the Arches | Garage Parking | Lovely Terrace | $700,000
Rare, corner unit at the Arches. 3 bedrooms plus den, 2.5 baths, lovely terrace, skyline views, and incredible light from big windows on three exposures. Hardwood floors throughout. Superb layout and space throughout. GARAGE PARKING. Excellent storage. This beautifully renovated and updated upper level unit is among the nicest in the always popular Arches.
Enter into the courtyard off 22nd (or Croskey). Up a few steps to the bright, double height entrance foyer. From there, you can walk up to the main living floor or down to the finished storage area and garage. Main Living floor–Enjoy the natural light from three exposures (South, East, and North). The open floor plan includes a large living room with wood burning fireplace; spacious dining room; renovated kitchen with quartz countertops and eating bar, stainless appliances, and ample cabinet and counter space; and a comfortable den right off the kitchen, Perfect for family and friends to hang out while you are preparing a meal. And this all opens up to a lovely balcony. Plus there is a renovated half bath and coat closet. And plentiful windows all around. Open the balcony door and south-facing windows, turn on the ceiling fans and enjoy an awesome cross breeze!
Bedroom Floor–Light-filled and spacious primary bedroom suite with tons of windows, nice closet space, ceiling fan, and an updated full bath. Two more nice-sized bedrooms with ceiling fans and closets. Tiled, hallway bath. Laundry closet with side-by-side washer and dryer.
Garage Level–Superb finished space for excellent storage, romper room, bonus room, etc. Direct access to the one-car garage. The garage is easily accessible via the driveway between the homes, which can be accessed from 22nd or Croskey Streets.
An A+ location–easy walk to Trader Joe’s, Whole Foods, Giant, Schuylkill River Trail, 30th Street Station, University City, Rittenhouse Square, the Parkway, and everything that Center City has to offer. 95 WalkScore, 100 Transit Score.
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This year from June 11 – 19th, the iconic PHS Philadelphia Flower Show takes place outdoors at South Philly’s FDR Park. The theme for 2022 is “In Full Bloom” and the show will feature incredible displays created by the world’s greatest floral and landscape designers, demonstrations, a marketplace, and entertainment.
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Visit the Museum of the American Revolution for Flag Day Weekend and check out hand-sewn replicas of flags flown by Revolutionary War ships. While there visitors will also receive a miniature version of “General George Washington’s Standard” which was a flag used to mark Washington’s presence throughout the Revolutionary War.
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The Betsy Ross House also has Flag Day programming that lasts all week long. The celebration includes an interactive flag raising, historical programming from colonial chocolate making, and flag history presented by Betsy Ross.
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Special Food and Drinks to Try
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Try out special cocktails for Pride Month at 11 awesome bars and restaurants around Philly. This initiative was created by FCM Hospitality with the Philadelphia Flyers and proceeds go to four local LGBTQ organizations. Some of the participating businesses include:
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Dine at Kalaya Thai Kitchen at the Bok Bar during the month of June and enjoy authentic Thai food and sweeping views of the Philly skyline.
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Head to the Sofitel Philadelphia in Rittenhouse Square on any Saturday in June for Gay Pride Drag Tea which is an afternoon celebration that includes a tasty spread of scones, sandwiches, and pastries and awesome drag performances. Also, pay a little extra and get bottomless mimosas or Bloody Marys. Tickets are required.
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Every Thursday from 4 – 7 pm through August 25th, Old City restaurants, bars, and eateries offer drink and small plate specials for Old City Eats. Over 20 businesses will be participating including:
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Head to the Fairmount Water Works for the beer garden program Parks on Tap which features a variety of craft beers, cocktails, and wine including brews from Mainstay Independent Brewing. There will also be entrees and snacks from local food trucks. While there, guests can dine at picnic tables or relax in hammocks and enjoy the view.
Photograph & content courtesy of uwishunu.
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During June, the lobby of the Sofitel Philadelphia in Rittenhouse Square transforms into a Pride Month exhibit with flags on display that represent Philly’s diverse LGBTQ community.
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Every Wednesday from late spring to summer over 50 Center City restaurants and bars offer happy hour deals during Center City District SIPS. The specials include $6 cocktails, $4 beers, $5 wines, and half-priced appetizers.
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See open-air concerts from the Chamber Orchestra of Philadelphia in beautiful gardens throughout Greater Philadelphia this summer. Click here to see the current list of upcoming shows and their locations.
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Head out of Philly to Doylestown’s James A. Michener Art Museum to see a private collection of famous artist Keith Haring’s work. The collection features over 100 works, including two rare drawings from blank advertising spaces that Haring drew on in the New York City subway and Medusa Head.
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Check out this new exhibition at the National Liberty Museum called “This is My Home” The exhibition explores various themes of liberty and features immersive “homes” created by five different artists. Some of the themes include homelessness, memory, technology, immigration, and history.
Photograph & content courtesy of uwishunu.
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403 S 42nd Street
NEW PRICE
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Mount Airy
New Construction
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3 Bed | 3 Bath
$1,029,000
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4623 Larchwood Avenue
NEW PRICE
5 Bed | 2 Bath
$1,000,000
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1629 North Street
NEW LISTING
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237-41 N Bread Street #4
NEW PRICE
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705-11 Pemberton Street #711
3 Bed | 2.5 Bath
$745,000
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3 Bed | 2.5 Bath
$725,000
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100 N 22nd Street #111
BRAND NEW LISTING
3 Bed | 2.5 Bath
$700,000
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237-41 N Bread Street #3
BRAND NEW LISTING
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As always, please know that I’m humbled by and appreciative of your introductions and referrals. If you have a friend, colleague, or family member that is in need of Expert Real Estate Representation, please have them contact me.
Be assured, I will do my best to exceed their expectations! Thanks for taking the time to read this issue of Around the Block.
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Some imagery in this e-newsletter was sourced via UWISHUNU and Canva.
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