Philadelphia is a Bubble Blower

Philadelphia is the only northeastern city among 10 “bubble blowers” or cities where housing appreciation is expected to grow, according to Bankrate.com. A recent survey by Bankrate.com indentifies a 12% increase in real estate appreciation in Philadelphia between 2004 and 2005, which they characterize as “high enough to encourage people to buy homes, but not at such a dizzying rate as to spark panic purchases.” Further, “The housing-cost-to-income ratio at 31% is quite favorable compared to other large northeastern cities (53% in Washington, D.C. and Newark, N.J. and 72% in New York City) and while job growth is small, it’s moving in the right direction,” Banknote reported.