Existing Home Sales Fall AGAIN

The National Association of Realtors reported today that existing home sales fell for the eighth straight month with median home prices dropping by a record amount. Nationally, sales of existing homes dropped by 1.2 percent in October to a seasonally adjusted annual rate of 4.97 million units. That represented the slowest sales pace on record going back to 1999 and was 20.7 percent below activity a year ago. The median price of a home sold in October, the point where half the homes sold for more and half for less, declined to $207,800, a drop of 5.1 percent from a year ago, the biggest year-over-year price decline on record.

My prediction: The rest of the year and first quarter 2008 will continue to be off 15 to 20 percent in terms of existing home sales. At that point I think we will start to see a stabilization.

So what does this mean for buyers and sellers in Philadelphia? I think that buyers—both investors and people who buy to live—are starting to believe that we are approaching the bottom of the market, so this may in fact be a good time to buy. Prices have adjusted on some properties that sellers need to sell, and buyers are recognizing the value and taking advantage.

Second Life as Urban Hipsters

Check out this great article that was on the front page of today's Philadelphia Inquirer: http://www.philly.com/inquirer/home_top_stories/20071127_Second_life_as_urban_hipsters.html

The Schneiders (pictured), one of the couples mentioned in the article live in The Lanesborough at 16th and Locust. The other couple, the Teasdales, live at The Bank Residences in Society Hill.

Washington Square--One of the Nation's Top Places to Retire

In the current issue of Money Magazine, the editors looked at 30 of the nation's largest metro areas and found the best neighborhoods in the country to retire. Washington Square in Philadelphia made the list for its quiet and historic feel and location on the Septa line. Here is a link to the story:

http://money.cnn.com/galleries/2007/moneymag/0710/gallery.bpretire.moneymag/14.html

If you are looking to move into the Washington Square neighborhood, here are some buildings right on the Square to consider:

Hopkinson House - http://www.allandomb.com/buildings.php?id=4
Independence Place - http://www.allandomb.com/buildings.php?id=3
220 W. Washington Square - http://www.allandomb.com/buildings.php?id=34
The Lippincott - http://www.allandomb.com/buildings.php?id=5

2007 Realtors Conference & Expo

Yesterday I spoke on a panel at the 2007 Realtors Conference & Expo. The panel was called Success in the New Normal and it focused on dealing with the market now that it has shifted and business is different. The goal was to get realtors to embrace the new normal and discover a multitude of techniques that will have them on the fast track to success. The moderator was Howard Brinton and the other panelists were Tammy Fadler, John Riggins, Fraida Varah, Bob Wolff, and Bruce Mulhearn.

My takeaway…price is key! All seven of us on the panel—from places such as Hawaii, New York, Missouri, California, and of course Philadelphia—agree that the market is drastically different than it was two years ago. Realistic pricing is a must to sell any real estate today, so sellers have to be willing to face that reality. Honesty to sellers is important. Realtors must walk away from unrealistic sellers. And now is actually a great time for investors.

Virtual open house: The Warwick steals the spotlight

Words can only describe a condo so well. And pictures tell only 1,000 words. Video tours, however, are far more helpful to buyers, especially for out-of-towners who might have difficulty seeing homes.

That's why we're including open house video tours of Center City condos to give DORE readers a virtual view of homes' spaces, features, and amenities. All are hosted by me, and filmed by the DORE team.

Our first video tour is a three-bedroom, three-bathroom unit in the The Warwick Condominium on Rittenhouse Square.

We have a full-length, six-and-a-half minute version with all the important details:



But if you're in a rush, check out the two-minute tour for the highlights. Enjoy!



Buyers, agents, or anyone else interested in touring or learning more about The Warwick can contact me at 215-545-1500, or Domb@AllanDomb.com.

Join me

Another thought crossed my mind as I work to get my blog off the ground.

I'm committed to posting frequently and providing timely reaction to industry news. But I'm just one guy, and I can't be everywhere at once.

On that note, I invite all real estate industry members and journalists to join me in my effort to develop Philly's number one real estate blog -- one that's honest, straightforward, and valuable to readers.

Maybe you find something I miss. Maybe you see a different angle to a story.

Whatever it is, feel free to share it. Comments, of course, are always welcome. But if you have something else to say that you think warrants a post, just let me know!

You can send your analysis, advice, insight, photos, audio clips -- whatever you think the Philadelphia real estate market would find interesting -- to Arielle Gottlieb at Arielle@GregoryFCA.com.

After reviewing it, I'll do my best to publish it in a timely fashion.

Thanks for your support -- I look forward to your feedback!

Project update: Putting a face on 22 Front

And not just any face -- but one that captures what it's like to live among the vibrancy of Old City and the cache of Society Hill.

That's my goal at 22 Front, my seven-story, 42-unit boutique condominium straddling these two Philadelphia neighborhoods. Construction is moving along, and the 19th-century charm that inspired the building is really showing through.

The brick exterior is 99 percent complete. The facade consists of 10-foot, floor-to-ceiling windows, which let in a great deal of sunlight. They're also insulated to reduce outside noise.

We're fitting in the interiors, too. All include tile, stone, hardwood finishes, and radiant heat. Plus, first-floor residents have the outdoor privacy of their own terrace.

Residents have already begun to move in and for prospective buyers, a one-bedroom model home and sales center is now open.

This is the side of 22 Front today:


And this is the facade:


Once it's all done, 22 Front will look like this:



Buyers with questions, or anyone else interested in learning more about 22 Front, can contact me at 215-545-1500, or Domb@AllanDomb.com.

Insert [your great design] here

Below is a photo of the last remaining lot on Rittenhouse Square, on the 1900 block of Walnut Street. I'm curious: If you were the developer, what would you build? What's missing on Rittenhouse Square? What would make the best use of the space? What would appeal to neighbors the most? Leave a comment, and let me know.

Center City: Philadelphia's heart and mine

Love Park isn't the only place you'll find Philadelphia affection. You're looking at it right now. This is my love letter to the city, and my answer to "Why Philadelphia?"

I think Center City is unique. Nowhere else in the United States compares to it. I've traveled all over the country, and after a short time, I'm ready to come home to Center City Philadelphia for its uniqueness, neighborhood feel, and walkability.

Every day you can say hello to familiar faces walking down the street. You can rarely do that in New York, Chicago, or Washington.

Philadelphia is the third largest downtown living city in the country, behind New York and Chicago. Within 25 blocks, you have everything these big cities have at your fingertips. It might not be on the same scale, but it's all here. And it's more affordable.

Tell me where in New York you can live in a neighborhood like Rittenhouse Square, walk two blocks to your office, and be able to live your whole life within five or six blocks. You can't find it.

Because it's not in New York. Or Chicago. Or Washington. Or San Francisco.

It's in Philadelphia.

Philadelphia: Acre of Diamonds

I'm Allan Domb and this is my blog.

I'm starting it because condo living and development in Philadelphia are my passions. And I want to share with the city, country, and industry my experiences, insights, and musings on life in Philadelphia, the Center City condo market, and what it all means for the city and its people.

Expect new ideas. Unique insight. Uncommon commentary. Everyone's invited to join the conversation -- including my competitors!

But first, a little background on why I specialize in condos in Philadelphia. I view it as Russell Conwell's Acre of Diamonds theory. It states people search the world over for fortune, when in reality, it's right in their backyard.

I came to Philadelphia in 1977. I worked as a salesperson for Phelps Time Lock Company, making $15,000 a year. To supplement my income, I became a realtor three years later, specializing in luxury Center City condos. And in 1999, I began specializing in luxury high-rise condo development.

I didn't research other markets beforehand. I just lived here, worked here, and had 19 years of successful experience selling and renting local real estate, and helping other regional developers market their projects.

My goal: Achieve homes for people in Philadelphia. Over the past eight years, I've developed The Barclay, 220 West Washington Square, The Lanesborough, The Bank Building Residences, 22 Front, The Warwick Condominium, and my latest accomplishment, Parc Rittenhouse, into luxury Center City condos.

Now I'm blogging about it.

But beyond the Acres of Diamonds theory, I invest so much time, money, and energy into Philadelphia for another reason, more meaningful than digging in your backyard. Check back soon to find out!