Quarterly Philly condo sales still strong

Boosted by sales coming at the tail end of the federal tax credit, and at auctions of unsold units at Center City high-rises, Philadelphia's condominium market remained strong in the third quarter.

Five hundred twenty-five transactions were recorded between June 30 and Sept. 30, compared with 604 completed sales in the second quarter, according to data compiled by economist Kevin Gillen, vice president of Econsult Corp. of Philadelphia, from deeds recorded during the quarter.

City condos are "one of the few relative bright spots in the region's current housing market," Gillen said.

"It was a big bet for both developers and the city to believe we could absorb the largest amount of new units since the post-World War II boom," he said. "The fact that we continue to not only do so, but in such a difficult economy, makes the Center City market not only a real, but also surprising, success story."

Still, the expiration of the tax credits for home buyers meant sale agreements for condos plummeted as the third quarter progressed. To qualify, deals had to go to settlement by June 30 or, after a government extension, be in the pipeline to close by Sept. 30.

Two hundred contracts were signed in September compared with 500 in June, Gillen said.

Regionwide, that helped push condo inventory to a record 22.3 months from about 15 months in June, and it hints that fourth-quarter city transactions will plummet.

The data show that just 20 third-quarter sales were resales of foreclosed units and that those were scattered among several lower-price condo buildings in Center City and Northeast Philadelphia. In the second quarter, 11 units sold were bank-owned.

Strongest sales volume continued to be in the market's lower and middle segments, the data show. In fact, 83 percent of all condo sales were below $500,000, compared with 79 percent in the second quarter.

Auctions boosted the third-quarter numbers as well. For instance, 64 sales were directly or indirectly connected to an April 29 auction at the Phoenix, 1600-18 Arch St.

The auction was timed so that successful bidders could qualify for the tax credit, which required signed sales agreements by April 30. Minimum prices ranged from $185,000 to $415,000. Data show sale prices between $224,900 and $472,000.

The 257-unit Phoenix had 119 owners before the auction. Three third-quarter transactions were resales.

At WSFS Bank's May 15 auction at 10-unit CU257, at 257-59 N. Second St., the remaining nine condos were sold.