Sunday, June 10, 2018

Philadelphia Housing Market Moves Sideways but Risk Looms

(Click on the image to enlarge)
After having experienced a linear growth in prices (Apr-July), Philadelphia housing market has been moving sideways, remaining range-bound between $180K and $185K. While the trendlines are endorsing the significant rise, they are confirming the slightly-negative sideways move as well.

Alternatively, when the prices are normalized (bottom graph), the trend is clearly declining after several months of sideways move (from $134 to $130). Philly needs a trend reversal immediately, otherwise a sharp downturn could be in the offing.

This sideways consolidation is quite common in the winter months in northeast. Of course, the counter case could be equally compelling: Then, why is this decline when the inventory is so tight? We just have to wait and see what is in store for this market...

Note - This analysis covers City of Philadelphia, not the entire Philadelphia County.

- Sid Som, MBA, MIM
President, Homequant, Inc.
homequant@gmail.com

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