Depreciation and Appreciation in the Center City Condo Market

As Heidi Klum would say, "One Day You Are In, and The Next Day, You Are Out". That notion, if stretched and reworked a bit, could be somewhat applicable to condos in Center City Philadelphia. Since not all fluctuations in value have a direct correlation to one event, or one particular quality to a particular Philadelphia condominium. Rather, a Philadelphia condominiums' value, and the rate of change therein, is really a product of a host of factors.

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. And of course the physical characteristics of any given unit can help or hurt the units value (think- huge closets, a tax abatement, 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.


Follow Philadelphia Condos on Facebook!


Beware of Wire Fraud

Follow Philadelphia Condos on Facebook!


Consumer Notice for Buyers of Condos

"Philadelphia Pennsylvania Real Estate"

Center City Condos is Jim, Mark, John, Matt, Randy, Jared, Kevin, Jess, Matthew, Patrick, Roe, Stephanie, Scott, Kris, Jaime, Steve, Melinda, Megan, and Nicole! We're here to help you find your perfect condo. Don't hesitate to contact us for all of your condo needs! We are familiar with a variety of condos in Philly and would love to show you the wide variety of condos in the Philadelphia real estate market!


Team at CenterCity.com has been the recipient of the Top 100 Award, ranking among the Top 100 real estate agents of the 55,000 Berkshire Hathaway HomeServices Fox & Roach, REALTORS nationwide for 13 years (2005 through 2017).


In 2017, we became a 15 Year Legend Award winning sales team representing sales professionals and teams who have earned the Chairman's Circle award for 15 years.



Search For Philly Condos

Located in
From($):
To($):
With a minimum of:


and

Mark Wade
215.521.1523

Sign Up for Our Snarky & Super Informative Newsletter!

Contact Us - Mark Wade - 215.521.1523

Email Mark Wade

ON THE FRONT LINES OF THE PHILADELPHIA CONDO MARKET SINCE 1989!

Newsletter Archives: