Realtor recap: The market in 2011

Philly’s real estate market wasn’t hit as hard as some others, but 2011 wasn’t exactly a year to be excited about. Median sales prices were down compared to 2010, according to Trulia, and the number of sales decreased. Still, some realtors have hope.

“I’m seeing more buyers coming to open houses … and investors are starting to pop their heads up again,” says Zach Skidmore of Prudential Fox & Roach. “I’m speculating 2012 is going to be a much better year.”

First-time buyers dominated
The average young homebuyer probably doesn’t have $60,000 to put down for a $300,000 starter home in Center City — but with the Federal Housing Administration mortgage program they only need to scrounge up 3.5 percent, or $10,500. “There aren’t a lot of loans available anymore where you don’t have to put down 20 percent,” says Peter Bishop, owner of Independent Custom Realty. “These buyers have been established in their jobs for 4 or 5 years, and they’re now able to jump to that price point because of FHA financing.”

Center City is still No. 1
“The further away you go from Center City, the bigger the slow-down has been this year,” says Bishop.

Skidmore agrees: “It’s a myth that there’s an overabundance of inventory all over the city. If a one-bedroom condo in Rittenhouse goes on the market, it’s going to sell right away.”

Both realtors have also seen fairly steady sales activity in the Graduate Hospital area.

“One thing I was looking at in the beginning of the year was whether Graduate Hospital would have legs — whether it would continue to stand up in the face of national housing difficulties,” Bishop says. “That it has was one of the big surprises of this past year.”

New construction trumped old

“Buyers love stainless steel and granite countertops,” says Skidmore. “Most want new construction that has those aesthetic qualities.”

First-time homebuyers especially want those spanking-new, move-in-ready homes they don’t have to put any work into, he adds, which might be why Graduate Hospital, with all its new construction, has stayed popular this year.