how's the economy in the downturn? (days on market, 2010, condo)

[loudpainting]

Prior to the downturn, Philly seemed to be on the rise, in large part due to its proximity to NYC.

Well, NYC is sinking. How is Philly faring now?

[orrmobl]

Judging by posts on here, I'd say it's still a desirable, affordable alternative to NYC. The Philly are housing market is projected to experience a 10% decline in home prices and hit rock bottom Jul-Sept 2010. Even though NYC is also coming down in prices, Philly will always be less expensive.

[bryson662001]

Originally Posted by loudpainting

Prior to the downturn, Philly seemed to be on the rise, in large part due to its proximity to NYC.

Well, NYC is sinking. How is Philly faring now?

The downtown has held up better than most places, although pretty much all development is on hold. One lux condo, the convention center expansion and two hotel conversions are still being completed but that's it. No other residential and no office space being worked on. The downtown office vacancy rate is running about 10%, which isn't bad. A few stores and resturants have closed but it's only a drop in the bucket. Likewise in the suburbs all development has pretty much stopped. Prices haven't dropped all that much but days on market and inventory are way up. From personal experience the stores all seem to be as crowded as ever. Unemployment is up a few points and the local news media is still very much obsessed with the doom and gloom story. I think it's a NY myth that Philly's fortunes are tied to NY though. I don't see the connection and the economys of the two towns don't have much in common. Philly's rep is slow but steady rather than boom and bust and that seems to be the case once again.

[lititzman2003]

They still plan on tearing down the Spectrum and creating a facility with shops and restaurants so I guess the Philly economy is soaring ahead.

[bryson662001]

Originally Posted by lititzman2003

They still plan on tearing down the Spectrum and creating a facility with shops and restaurants so I guess the Philly economy is soaring ahead.

Many, many projects of all kinds are "planed" including a new 1,500 foot office tower in Center city plus additional office towers, hotels and residential towers but pretty much nothing is actually happening right now including the spectum demo. Even the two casinos "planed" for the city are stalled in spite of being overdue and mandated by law to be built. Developers blame the credit crunch rather than lack of demand although really the high end luxury residential market is over built at the moment. I did remember a few other residential projects that are still under construction however so there is a little bit of development still going on but nothing that wasn't already started. I can't think of anything where the plug was pulled after construction began.