Philadelphia Housing Activity  Earlier this week, the National Association of REALTORS released the existing home sales data for July. This story has been picked up by both national and local media, specifically reports of larger-than-expected drops in sales both nationally and across the Philadelphia-metropolitan region. Suburban West Realtor Association, the local real estate organization, points out that: Sales - The National Association of REALTORS had been projecting over the last year a sharp decline for the period immediately following the expiration of the home buyer tax credit, since many buyers rushed to take advantage before the deadline expired. This coupled with continued employment concerns was a major reason for the decline in sales. Prices - There is a silver lining for current homeowners. Their value has firmed across the region, with numerous gains reported (Year-over-year for July, prices were up 1% in Delaware County, 7.6% in Chester County and 9.6% Montgomery County). All year, we've been seeing a flattening price trend, which is the greatest benefit of the home buyer tax credit. Looking ahead, prices are likely to hold fairly event - in part from very low new construction, and prices are coming back in line relative to family income. Market Conditions - There are great opportunities now for buyers who weren't able to take advantage of the tax credit. Mortgage interest rates are at record lows, home prices have firmed and there is a good selection of property in most areas. Thus, buyers with good jobs and favorable credit ratings find themselves in a fortunate position. Outlook - Near-term home sales will be soft - the real question is what happens in the 4th Quarter. Job creation so far this year has been less than forecast, but with rock-bottom mortgage interest rates and historically-high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy can consistently add jobs. Source: Suburban West Realtor Association Phila. Real Estate Sellers See Hot Market for First-Timers  Philadelphia has made the top 10 in a new list by Forbes.com that ranks the best metropolitan areas across the US for renters to become first-time home buyers.The web site conducted the study of 42 real estate markets using real estate and mortgage data.  Additional factors were jobs and quality of life. Source: KYW, Michelle Durham Are PA Housing Markets Over-Valued or Under-Valued? In 2006, a research study by National City Corp. and IHS Global Insight ranked U.S. housing markets on whether or not median home prices in 299 markets were “priced correctly.” They found that 213 of the 299 cities selected for the study were over-valued. By 2010, only 87 of 330 cities studied were over-valued. The most under-valued market in the 2010 study was Las Vegas at 41 percent below fair value. Philadelphia was considered 16% over-valued in 2006 and by 2010 is considered 3% under-valued. Source: PA Assoc. of Realtors Read a recent  article on this topic by Alan Heavens which appeared in the Philadelphia Inquirer. Taxes trend upward: 31 of Delco’s 49 towns raised taxes in 2010 Across the county, municipalities are facing declining revenues coupled with rising costs as officials work on balancing budgets during a recession. For many homeowners, that can only mean one thing — a hike in real estate taxes for 2010. Municipalities are pointing to a steady loss of revenue because of state cutbacks, lower building-permit fees, and fewer deed transfer taxes. In addition the steady increase of insurance premiums paired with declining revenue when implementing an increase in taxes have also been a burden to many local governments. Several municipalities in Delaware County were able to hold the line on taxes this year, with some even continuing decades-long streaks of budgets without an increase in property taxes. Source: Daily Times  The Philadelphia Inquirer recently reported on the improved state of the local area estate market Driven by sales in the city, home prices in the Philadelphia region rose by an average 3.8 percent in the second quarter of 2010 over the previous quarter - the first increase in two years. Data compiled by Kevin Gillen of Econsult Corp. in Philadelphia showed that even with sales volume nearly 50 percent below normal in the second quarter, homes that did sell sold for more. In the city, prices were 6.8 percent higher, while suburban counties showed an average price increase of 2.7 percent, Gillen said yesterday. Those gains "helped erase some of the losses since the bursting of the national housing bubble just over two years ago." Read entire article . Source: The Philadelphia Inquirer Chester County growing fast According to a study by the Pennsylvania State Data Center this month, Chester County will grow more over the next 20 years than any other county in the state. The county is projected to grow by 258,533 residents between 2000 and 2030, a 59.6 percent increase. Relative to neighboring counties, Chester County has a higher birth rate and more immigration from within the state, the country and overseas. Montgomery County should add 138,168 residents over that period, and Delaware County will add just 33,078 residents. That state´s population is projected to increase by 7.4 percet overall. Source: Suburban Wayne Tiimes Chester County fares well on lists measuring wealth Chester County has found itself in rather prestigious company, ranking among the top 50 counties across the country in three categories: wages and salaries, dividend income and adjusted gross income. The report, complied by the Transactional Records Access Clearinghouse at Syracuse University, looked at individual and joint federal tax returns filed in 3,140 counties nationwide in 2007. In Adjusted Gross Income, or AGI, Chester County ranked 21 at $96,578. On the Wages and Salaries list, Chester County ranked 15 at $70,404. Top employers include Vanguard, QVC and Sungard, which offer top wages. Chester County is home to a number of biotechnology companies as well. On the education front, Chester County has four universities and graduate campus Penn State Great Valley. In addition, the county has an excellent public and private high-school system within its borders. In Chester County, 42.5 percent of adults 25 and older have a bachelor’s degree or higher compared to 22.4 percent in the rest of the commonwealth, he noted. For the complete list, visit www.trac.syr.edu. Source: Main Line Suburban Life Battle brews over home assessment Many residents and tax experts have complained that property taxes are often based on outdated assessments that do not reflect today´s real estate market value. A case pending before the Pennsylvania Supreme Court could deem unconstitutional the system that has let 35 years pass in Bucks County, 12 years pass in Chester County, 10 years pass in Delaware County and 12 years pass in Montgomery County. Until the court issues a ruling or the Legislature changes the countywide reassessment process, the homeowner´s only recourse is to file an assessment appeal.  Source: Philadelphia Inquirer New campaign will market region’s “Classic Towns”  The Delaware Valley Regional Planning Commission (DVRPC) is touting some of Philadelphia´s first suburbs as “great places to live, work, and play.” The new marketing effort, titled “Classic Towns of Greater Philadelphia,” will feature the following townships and boroughs: Landsdowne (Delaware County), Media (Delaware County), Manayunk (Philadelphia), Overbrook Farms (Philadelphia), West Chester (Chester County), Doylestown (Bucks County), and Ambler (Montgomery County). The Classic Towns initiative is committed to the growth, revitalization, and support of the region's older communities. Source: Philadelphia Inquirer