Executive Summary
P R E S S R E L E A S E
For Immediate Release:
Jan. 29, 2009
Contact: Harvey M. Rice
(215) 686-6696
Local Home Prices Predicted to Take Significant Decline
Prices were not as bad as National trend but major drop in sales could be soon
PHILADELPHIA – City Controller Alan Butkovitiz today released the Monthly Economic Snapshot and Monthly Economic Forecast Review for December that shows local home prices could start to decline because of the major decrease in housing sales.
The decline in local home prices was about seven percent in December compared to a nationwide decline of 15 percent. Despite the less dismal decline in prices, the region faced a 21 percent drop in sales volume, which may indicate steeper price reductions. Nationally, sales were down only 3.5 percent.
The monthly review also showed the unemployment rate for the Philadelphia region is up from 3.9 percent to 5.9 percent. The City’s rate stands at nearly 8 percent which has increased from 5.6 percent last year.
The Monthly Economic Snapshot presents key economic data for the United States, the Greater Philadelphia Region, and the City of Philadelphia. The Monthly Economic Forecast Review is a collection of projections from prominent economic institutions and an analysis of their forecasts of future economic performance. These two documents together — the Snapshot and the Forecast Review — are a useful tool for policy makers and analysts in understanding our city’s and country’s economy.
The Economic Snapshot and Monthly Forecast are compiled by the Financial and Policy Analysis staff. The City Controller’s office circulates these documents on a monthly basis to assist key decision makers in understanding and anticipating local and national economic trends.