Philly Economy (Philadelphia: mortgage, lawyer, real estate)

[VivaLaEvie]

Hi, I am from NYC, but moving to Philly. Here in NYC, we know there is a recession coming. The financial sector is laying off entire divisions (all the mortgage-backed securities sections, and anything that had to do with housing). Law firms are doing the same, so we know we are in for tough times in the near future. It just always works that way here.

What about in Philly and nearby communities? How is the job outlook? How will this impact housing prices? Any insight or ideas is appreciated.

Thanks!

Evie

[BPP1999]

Philadelphia's economy is OK. The job market is generally much better in the 'burbs. However, there's plenty of jobs for doctors, lawyers, accountants, etc. in the city.

There is some good news in that Philadelphia has a new mayor, Michael Nutter, who ran as a reformed and claims to care about the neighborhoods AND the business community.

[Pat_in_Pa]

Hi, VivaLaEvie:

I read about many NYCers coming to the area after losing WS jobs in your neck of the woods.

Generally, Philly shouldn't take the hit as hard*, but housing is clobbering SEPA counties. Northern suburbs with a high portion of commuters to NJ will feel the impact. One saving grace will be the number of folks who work for the state of New Jersey, but live in PA (albeit faking NJ plates as necessary). They'll help the economy a bit, assuming NJ makes no inroads into curbing its insatiable state unions. Spending will slow, as in NYC, but not as deep and fast.

Check the real estate transactions during the last year for one perspective on your question.

Nobody buys a house if they're worried about their jobs, their spouse's job, or their ability to finance (in addition to the uniquely current issue that "prices are dropping so why should I buy?").

Go to Melissadata.com and check the free lookups for various zip codes. Check at least ten ZIPs with some money, like 19301, 19067, 19103, 18901 and then a couple of other center city zips, and count the number of housing sales for 11/2003-1/2004, 11/2004-1/2005, and compare to 11/2007-1/2008.

*Note: this is my opinion; I'm a nobody, I wear a size 7 1/2 shoe, and drive an economy car. Therefore you should make your own independent assessment. You can read some economic forecasts at Putting Recession Into Our Forecast

Greater Philadelphia Chamber of Commerce | Listen to Mark Zandi, keynote speaker at the 2008 Economic Outlook Conference, on the Region’s Economy