Philadelphia Real Estate Blog

So we hear all the time about the glut of condos on the market. But that is not always true in specific segments of the Philadelphia condo market. For instance, if we look at four very popular existing condo buildings here in downtown Philadelphia we see that the opposite is the case.

According to TrendMLS, on September 20, 2011 there are only three (3) active condominiums for sale in the following buildings:

-The Dorchester at 226 W. Rittenhouse Square

–The Hopkinson House at 604 S. Washington Square

-Independence Place (Buildings I AND II) at 233 and 241 S. 6th St.

-The Wanamaker House at 2020 Walnut St.

So out of nearly 2000 possible available units, there are 3 units for sale. Go figure.

Mark Wade
www.CenterCityCondos.com
Mark@CenterCity.com
Berkshire Hathaway Home Services Fox and Roach Realtors

Bloomberg News – Mortgage Rates Fall to Lowest on Record, Freddie Mac Says – Lowest Since 1950s Sept. 15 (Bloomberg) — U.S. mortgage rates fell for a second week to the lowest on Freddie Mac records as a slowing economy and concerns that Europe’s debt crisis is worsening drove investors to the relative safety of Treasury bonds.The average rate for a 30-year fixed loan dropped to 4.09 percent in the week ended today from 4.12 percent, Freddie Mac said in a statement today. That’s the lowest in the McLean, Virginia-based company’s records dating back to 1971. The average 15-year rate fell to 3.30 percent from 3.33 percent.Yields on 10-year Treasuries, a benchmark for consumer loans including mortgages, are near all-time lows amid signs that the U.S. economic recovery has stalled and the euro region is struggling to contain its debt burden. Low borrowing costs have done little to improve the housing market as foreclosures mount and the unemployment rate remains above 9 percent. Data from the National Bureau of Economic Research measuring Federal Housing Administration loans indicate that long-term borrowing costs are the lowest since the 1950s, according to Chad Wandler, a spokesman for Freddie Mac. Mortgage applications rose for the first time in four weeks as rate declines encouraged purchases and refinancing, according to the Mortgage Bankers Association. A gauge of refinancing climbed 6 percent in the week ended Sept. 9, while the purchase index gained 7 percent, the Washington-based group said yesterday.

Do you HATE condo fees? You could be an Goof….
I hear buyers say “I don’t want to pay condo fees” all the time. Of course we all want our elevators to run on magic pixie dust, and we want our doormen to work for free. And I want
a new shiny Bentley in my driveway too. You get what you pay for. Period.
Here is the scoop:
In high rise condos, fees can appear to be excessive. But NO ONE is profiting from the fact that you pay condo fees. Fees can cover:
Doorman
Elevators
Utilities
Master Insurance Policy
Amenities (parking, pool, trash removal, water and sewer, etc).
I understand you may not want those services. Perfect….then a high rise condo isn’t for you. No problem. But I hear buyers say they don’t want to pay any condo fees- not even in a low rise condo. those buyers are seriously misguided. Low rise/Brownstone/Lofts style condos have minimal fees- and those fees are simply fees that you would have to pay if you lived in a SINGLE FAMILY TOWNHOUSE . Get it?
Like paying your own:
Master Insurance Policy
Exterior Repairs
Water
Sewer
Exterior Lighting
And putting some $$ away for a rainy day-which condo associations generally do

I have seen some pretty cool decorating ideas in many condos throughout the Center
City Philadelphia condo landscape. And I have seen some mistakes as well. Here are
just a few ideas off the top of my head…decorating mistakes that don’t play well in the
resale market:
1) Putting a shiny clear coat of varnish of exposed brick walls
2) Installing carpet in a lower level area- be it a kitchen or bedroom
3) Using florescent lighting anywhere when trying to sell a condo
4) Hollow core white doors with brass knobs and hinges- Try painting a neutral color
5) Vertical Blinds. Need I say more?
6) Colored carpet. Any color of the rainbow in terms of carpeting is bad. Stick to neutrals or dark
    dark dark low pile brown.
7) Less is more. Condo by definition are usually limited in size. Get rid of the crap that has  been
   piling up- aka: Clutter.
8)  The Matchy Matchy Look- curtains match the tablecloth, the carpeting, and bedspread. Ick.
Here is a GOOD idea….
If you have some exposed brick, try painting it a really cool light color (like grey) and finish it with  matter finish (flat). You can thank me when you see the appeal it can have with buyers.

Mark Wade

Lovely Painted Brick adds huge emotional impact

www.CenterCityCondos.com

Some Center City condo buildings boast amenities like a gym. In actuality, they are nothing
more than a converted maids closet. Small, cramped, and stupid would be the best way to describe what some developers will pass off as a gym. Here are the best gyms in the city that are inside of condo buildings, in my opinion:

1) WaterFront Square: The best of the best. Huge, clean, great views, and always really well air-conditioned. Nice assortment of free weights and machines. Even an on-site vendor to serve up protein shakes when you are done. The Pool is unrivaled in terms of size and views. Hot tub, sauna and steam room complete the package. A-1

2) The Ritz Carlton– Huge, super clean, and well furnished. Of course the pool and hot tub don’t
hurt either. Bottled water at each treadmill awaits. Great Views overlooking City Hall!

3) The Murano– Similar to the Ritz Carlton…but a bit smaller. Huge pool…no hot tub or sauna- but a fairly large dressing room/shower area. Kept in mint condition…very clean.

4) Liberty Two– Large clean gym with lots of equipment, and the views from the 36th floor are stunning. A great way to pass the time while you are on the treadmill. Pool is small, but it is one of those endless pools that means you swim in place- against a current.

5) Locust Point– Not really all that large, and no pool, hot tub or sauna. But floor to ceiling glass…so you can lookout to the Schuylkill Riverpark jogging trail. Or just head out to the trail and skip the gym. This nod to Locust Point is more about the fact that you are right at the Riverpark…and gives you an option that few other condo buildings can brag about.

Mark Wade
www.CenterCityCondos.com

And please stop with the patronizing “and you get lovely carpet in the bedrooms at no extra charge”. Again, you are an idiot.

And touting the virtues of a dishwasher, a garbage disposal, and/or doorbell for each condo unit?Yippee…where does my buyer sign?? If developers could take a minute or two to tour some of the condo offerings in Center City Philadelphia, and realize that the buyers I am bringing to your front door have seen almost EVERYTHING on the market, then maybe that developer could wise up, and compare apples to apples. Tell us about the significance of your location, the quality of your construction, or the fact that you are priced competitively. My buyers are not stupid, and I will not allow them to be uneducated. So wise up, and let’s make a deal. Because until you (Mr. Developer) come to your senses, my buyer’s desire to write an offer on one of your condos is going to be severely limited.

Like people in a swimming pool, some float, and some sink. The question is why.

Obvious factors are the showing ability and emotional impact that a particular condo unit does or does not possess: cleanliness, natural light, wall color, furniture, even the smell of a condo can add or subtract from the emotional beauty, and leads to a huge impact on a condos value. In my twenty years of selling real estate, I have never had a buyer tell me to find him the dirtiest, or the worst decorated condo available. Easily, as much a ten percent difference in value depending upon showing ability. And of course interior condition can also have a major impact on value. Beige bathtubs and appliances can crimp value fairly quickly in a lot of cases. 

In addition, the physical charactoristics of any given unit can help or hurt the units value (think- huge closets, a tax abatment, high ceilings,etc). Styles, like appliances and carpeting have a tendency to age, and that is usually accompanied by a slower rate of appreciation. Clearly, more recently rehabbed, say, Rittenhouse Square condos are going to retain their value better than a unit in a state of disrepair or decline in its finishes. Also prohibitive condominium association rules and policies can deter many buyers from specific buildings. A host of factors can cause units to sit on the market longer than normal, and almost always guaranteeing a lessened resale value.

Location is also a huge factor to the rate of either appreciation or depreciation. Stronger locations in town have a tendency to be a bit more elastic- they are the first neighborhoods to see a drop in inventory with any influx of buyers to the market. That’s a good thing. Recall the principles of supply and demand. I would argue that a strong location is going to depreciate less -because IF in a weakened marketplace, the first condos to remain unsold are in the weaker locations. (The flip side is that you might be able to strike a significantly improved deal, should you be looking away from an “A” location.)

I am just brushing the surface here, but know that not all condos in town will appreciate or depreciate at the same rate. Or sell within the same given timeframe. The best tools you have to insure your value remains intact is twofold:

1) Buy it at the right price in the first place and/or

2) Keep your unit looking like it just jumped off the pages of Town and Country Magazine.

Easier said than done, I am aware!

Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach REALTORS®
530 Walnut St., Suite 260 Philadelphia, PA 19106

There was an article last week in the Philadelphia Inquirer that suggests more Philadelphia Condos are being rented.  Here is an excerpt from the article:

Because the focus of residential construction during the boom times was on for-sale housing rather than rentals, there aren’t enough high-end apartments to go around now.

“We are finding the high-end rentals to be almost nonexistent, as they rent fairly quickly,” said real estate agent Mark Wade, of Prudential Fox & Roach.

Condos near the University of Pennsylvania and Thomas Jefferson University “have a built-in demand for rentals, and we have seen that equation play out year after year,” Wade said.

Read more here:

http://articles.philly.com/2011-06-01/news/29608739_1_rental-apartments-rental-units-center-city-district/2

Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19106

Race Street Pier officially opened today! This is the first new public space of its kind located on the Delaware River as part of the Delaware River Waterfront Corporation’s ambitious new plan.  The Pier reconnects the City to the River, activates the water’s edge and establishes the pier as a distinctive new public park for the people of Philadelphia. Click to read more about The Race Street Pier.

This is a great new park for Philadelphia condo owners and Philadelphia condo buyers. If you are interested in purchasing a condo in Philly, give us a call at 215.521.1523.

Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach
530 Walnut St. #260 Philadelphia, PA 19106

Please come out with your Mom for a stroll this Mother’s Day and stop by our Center City open houses on Sunday, May 8.

Noon-1:00PM
38-44 N. Front St. – The Winne Condos – 12 bank owned units with unique floor plans, wood floors, top-of-the-line kitchens & baths, recessed lighting, high ceilings, landscaped courtyard. FHA Approval pending – Starting at $215,110

736 Pine St. Unit D – 2-bedroom condo in Society Hill with central air, family room, basement, 2 decks, & parking. Distinctive & delightful! $499,900


736 Pine St. Unit F –  Sunny 2 bedroom condo, private entrance, open floor plan, California closets, granite/ss and tax abatement $349,999

1:30PM-2:30PM
117 S. 16th St. #400 (aka 1551 Sansom) – Entire floor! Very Large 1 bed/1.5 bath condo- corner unit- tons of light. Hardwood floors- Elevator opens directly into unit! Mint Condition, good closets $359,000

103-07 Church St. #9 – Tons of Old City charm. Tall windows, hardwood floors, exposed ductwork, open granite & stainless kitchen. Lrg quiet MBR has natural light & good sized closet w/en suite master bath. ASKO w/d $299,999

3PM-4PM
912 Spruce St. #8 – 1 bedroom located to the rear of building away from any street noise, high ceilings, stainless steel appliances, low condo fees, move-in condition at an unbelievable price! $229,000

We hope to see you there! To view all of our Philadelphia Real Estate Listings, including Philadelphia Condos visit www.CenterCityCondos.com.

Mark Wade
www.CenterCityCondos.com
Prudential Fox and Roach Realtors
530 Walnut St. #260 Philadelphia, PA 19106