Mexican Food in West Philadelphia

I was putting a property under contract in West Philadelphia recently and had the opportunity to have lunch at Distrito -- a newer Mexican restaurant at 40th and Chestnut. The property was a few blocks West in Overbrook -- a nicely maintained and updated rowhome which will settle for around $100,000 at the end of this month -- but 40th and Chestnut is about the closest culinary experience, inside the City limits worth a trip.

For years the corner of 40th and Chestnut has provided some of the best ethnic food in the city. There have been several Indian, Thai and Mexican restaurants over the years. The current balance of Indian (my favorite being Tandoor India on 40th Street just south of Chestnut) and Thai (my favorite being the Thai Singha House on Chestnut just east of 40th street) restaurants has been signigicantly upgraded with the addition of Distrito, however.

The experience is jarring. Brightly colored woven chairs and ratan benches with cushions surround the tables. Postcards held in clips decorate the walls. The bar sits beneath illuminated white, text-only, signs that promote specials of the house.

The food also challenges. We ordered lunch specials which consisted of two small plates each, plus a beverage. We each ordered yellow tail tacos which were spectacular. Soft tortillas topped with batterd yellow tail, avocado and red cabage were beautiful to behold and magnificent to taste. My other course was a shrimp ceviche, which was a Mexican version of a shrimp cocktail that included guacamole and a Mex'd up cocktail sauce. We didn't try them, but the margaritas, according to a friend and fellow realtor, are yummy as well.

Over the years I've had Mexican at many locations throughout the City, notably El Vez -- great table-side guac -- Tequila, Mexican Post, and not far from Distrito my heretofore favorite Zocalo. It's been a decade since I've been to Zocalo, actually. Located at 36th and Lancaster, they also serve up-scale "Mexico City" mexican and make a mean margarita.

Buyers are Ready to Lead Once More

How’s the real estate market? I hear this question multiple times every day – as if the answer could be “great” or “lousy” and there would be some way to quantify it.

The market certainly was slower in 2008 than recent memory. Transaction volume was down 25%-35% in the region, depending on what you’re counting and how you define “region”. I have previously discussed absorption rate (a theoretical concept that calculates the length of time it would take to exhaust all listed real estate in a particular area if no more houses were added to the market inventory) and have noted that in most cases those rates are higher, though across the region the rates vary from municipality to municipality, school district to school district, zip code to zip code and neighborhood to neighborhood. Time on market for listings is increasing in most areas across the region. Prices are either holding steady or slightly declining across the region. But all those statistics really don’t answer the question, “How’s the real estate market?”

Perhaps that’s because I’m not sure we have a market right now. We have houses for sale, but not enough ready, willing and able buyers to really make any statement to determine if prices will start to go back up, or slide some more, or stay the same. For a market to exist, there need to be both buyers and sellers. Those people help determine relative supply and demand, and market they create for the product being sold determines its price.

Many people out there are believing a myth that says there is not enough mortgage money available for buyers right now. That’s just not reality. It is true that for individuals who can not document their income, or haven’t demonstrated a track record of paying their bills, that it’s tougher to get a mortgage. But for the vast majority of bill-paying citizens who work for W-2 issuing employers, mortgage money exists. FHA loans (even for folks with credit scores below 600) are available with just 3.5% money down. I have lenders who can still do 100% financing with low fixed-rate products and even waive Private Mortgage Insurance (PMI) for first-time buyers. At Weichert Financial Services, there are low rates (5.75% last week) on fixed-rate jumbo loans.

So buyers are able to buy. Many have even sought out pre-approvals from lenders so that they are ready to buy. Pre-approval rates jumped in the month of December and early this year when rates sank to historic lows – where they still are hovering today.

That leaves us with the question are they willing? I think that in this question lies the answer to the bigger question, “How’s the real estate market?” For the last four months, I do not think there have been many willing buyers. Buyers have looked at several properties (since January 1st, I have literally shown more than 100 properties). Many of the properties I have shown are in good condition and priced well. But my ready and able buyers, are reluctant to make offers. There is a collective conscious feeling that there is an uncertainty about the overall economy. This in recent weeks and months has undermined the real estate market.

So buyers are ready to lead the way back into the real estate market, but lack the willingness. Leading to the ultimate question, “What should be done?” Here, I diverge from my Realtor peers and elected government representatives. I believe that there is no need to “fix” the market. There is no need to buy down interest rates for home buyers – remember, they are at historically low levels already. I believe we do not need to bail out the banks who made bad mortgage loans, nor the buyers that got in over their heads. I believe in the personal responsibility and accountability that our new President Barack Obama spoke of on Tuesday. The answer to our problem is that in their own time, the buyers will start to overcome their fear and lead the way back in to the real estate market and economic prosperity. It is my belief that the first buyers back in will be rewarded by taking advantage of their leverage; that should be stimulous itself!

The first time homebuyer has quite possibly never had the amount of leverage that s/he has today. Amid the gathering storm clouds of economic uncertainty, the buyers are ready to lead once more.

Fishtown Properties Moving

Fishtown is another neighborhood in Philadelphia where property continues to move in a Buyer’s Market; the absorption rate (13.5 months as of today) is among the lowest in Philadelphia. Fishtown is located just to the north and east of the Northern Liberties on the way to Northeast Philadelphia. It’s a short trip down Delaware Avenue to Dave and Busters or any of several Philly entertainment venues. It’s also perhaps the location of a future casino within the City limits.

Shackamaxon Court in Fishtown is a gated courtyard condo development right at the border to the Northern Liberties. I know them well because I spend several days a month at Open Houses there. While I am definitely biased, I think they are some of the coolest newly offered condos in Philadelphia.

The center landscaped and hardscaped courtyard, flanked by iron security gates designed by local artist Robert Phillips features a 12-foot by 6-foot water wall and additional metalwork art installations by the artist. Bob is noted for several pubic art installations throughout the city, including the dragonflies and butterflies that soar above 31st and Girard (on the other side of the Girard Street bridge from the Philadelphia Zoo) and the unique bicycle racks along Frankford Avenue. He also designed the metalwork on the façade to what was Striped Bass.

The units themselves are distinctive and feature high end finishing. The 12 one-bedroom units are priced from $155,000 to $212,000 showcase granite kitchens with stainless steel appliances, hardwood floors, in-unit laundry hook-ups, and custom tile bathrooms (some are tumbled stone, some have glass accent tiles, and some are intricate ceramic tile designs). Some of the bathrooms in the 1-bedroom units include acrylic sinks, and the 3rd floor units have vaulted ceilings, skylights and light tubes.

The six two-bedroom units have at least two full bathrooms and start at 1400 square feet, ranging from $455,000 to $650,000. The units have hardwood floors; granite kitchens with upgraded appliances, 42-inch cabinets, and custom tile backsplashes; living rooms with gas fireplaces and crown molding; tumbled stone bathrooms with cherry vanities and granite countertops. Second and third floor units include custom ironwork Juliet balconies designed by Bob Phllips. Third floor units have private 550-square-foot TimberTech roof decks with panoramic views of Center City Philadelphia and the bridges spanning the Delaware River. All 2-bedroom units include 1-car, on-site, deeded garage parking.

Shackamaxon Court is two blocks away from Johnny Brenda’s, a Fishtown institution that features locally crafted beers, high-end tavern fare, and live music several nights a week. It’s also one block to the Girard Avenue Trolley and four blocks from the Market-Frankford El stop at Girard Avenue – just a 15 minute commute to City Hall!

Baby It's Cold Outside

The coldest temperatures our region has seen in four years – so much for global warming!

While it will be no fun showing homes in Delaware and Philadelphia counties this weekend, the cold provides a great opportunity for sellers and buyers to evaluate the weather resistance of their current and future homes. Drafty windows, minimal insulation in the attic, or gaps around exterior doors all pose problems with simple fixes that can improve a home’s marketability and live-ability.

Last fall, when it wasn’t too hot or too cold, I went around the house and re-caulked all of the windows inside and out. We have vinyl replacement windows with exterior capping that is fairly low maintenance, but all places where different materials meet (stucco and aluminum capping for example) have different responses to heat and cold that require caulking and re-caulking on a fairly regular basis. Over time the caulk gets brittle and cracks and needs to be removed and re-done. The process only takes a few minutes for each window, and the caulk itself only a few dollars for several windows. We remarked this evening that the results are dramatic.

Sellers should know that buyers will often walk in front of windows to see how drafty they are. Energy efficiency is very important to buyers today, especially first time home buyers who are perhaps about to be responsible for utility costs for the first time. As renters they know full well about comfort issues, but those issues now have a price tag connected to them.

In the attic, over time fiberglass insulation becomes compressed and less efficient. Insulation should be placed along the “floor” of the attic, not stapled into the plywood sheathing that comprises the roof. Often people make this mistake in Cape Cod style homes where the “attic” areas are partially finished. Putting insulation up against the sheathing doesn’t allow the roof to “breathe” properly and moisture builds up on the roof and becomes a potential source for mold. Mold, in addition to potentially posing health risks, also over time can cause wood to rot, further damaging structural components of the house.

I was at a home inspection in Wallingford this week where a 12-year old roof with mold-damaged sheathing and rafters will need to be replaced, rather than re-shingled.

Lastly, gaps below exterior doors can allow cold air to rush in, and heat to escape. Quick fixes like draft dodgers along the inside will certainly improve living and utility bills, but they are red flags to buyers. If the problem is extreme, homeowners need to replace doors, or as a middle ground install a storm door.

Is Graduate Hospital Still Booming?

I was showing houses to Beth in the Graduate Hospital area in Philadelphia earlier this afternoon. Graduate Hospital is a neighborhood named for the hospital on the 1800 block of Lombard Street and has taken on the area from Broad Street to the Schuylkill River south of South Street to Washington Avenue. This large section of the city below Rittenhouse Square and Fitler Square has continued to thrive over the past year and remains one of the few areas where buyers and sellers continue to agree on pricing.

One indicator of that is the number of pending sales, which for 19147 (which includes all of this area, plus a substantial number of properties south of Washington) is 56. A better indicator, however, is market absorption.

Market Absorption
Market Absorption indicates the length of time it would take to sell all currently available properties, based on recent trends, if we were to freeze the market and not add any houses for sale. It’s a purely theoretical concept, but helps quantify the market. Absorption numbers of 6 months indicate a balanced market, and lower than 6 indicate a strong seller’s market. Over the past year absorption figures started rising above 6 months and even above 12 months, indicative of a strong buyer’s market.

The market absorption rate in 19146, based on the last quarter, is 12.65 months – it would take 12-13 months to exhaust the housing inventory if no other homes were put on the market, based on the demand for homes over the last quarter and the number of active listings today. Even though that number is clearly indicative of a buyer’s market, in context it still shows property moving quicker than in other neighborhoods. In Bella Vista, for example, the absorption figure is 15.7 months, and in Washington Square West/Society Hill it is 26.1 months.

Divan
The showings in Grad Hospital culminated with a rehabbed rowhome on the 2200 block of Carpenter Street (3BR/1.5Ba home priced at $274,900) which is down the street from Divan Turkish Kitchen & Bar, a wonderful Mediterranean restaurant that I first experienced about a year ago when selling a home on Christian Street. At that time we sampled, among other things Kayseri Manti, steamed lamb dumplings topped with a garlic yogurt sauce and mint. They were lovely, as were the kabobs, and the mixed appetizer plate which includes hummus, Turkish yogurt (Haydari), eggplant salad (Patlican Salatasi), eggplant and tomatos (Soslu Patlican) and stuffed grape leaves (Yaprak Sarmasi).

Effie's Restaurant
While talking about Mediterranean cuisine, I would be remiss if I didn’t mention one of my favorite restaurants in Philadelphia – Effie’s. Located at 1127 Pine Street in Washington Square West, this BYOB has many of the usual Mediterranean staples, but also the best baby lamb chops in the city. My wife and I last visited in November – it had been more than a year since our last trip, and we were pleased to see that it was as good as ever, and well worth the inevitable long search for street parking in the neighborhood. We’re planning to return for date night again later this month.

All Buyers Should Get a Home Inspection

I woke up this morning and smiled. Not only was it not snowing -- no school delays or closings after all -- but it was raining steadily.

I love the rain.

I had a home inspection for a buyer in Manayunk today and, as I wish for on every home inspection day, it rained. I’m not a big fan of standing in the rain, and certainly have never been one to sing in the rain, but a home inspection in the rain allows the inspector to really get a good look at any water penetration issues that a home may have, and really tells a buyer whether or not the basement is dry.

I use that phrase intentionally because as Howard Shanker from Apex Inspections likes to say (and explained today), “there’s no such thing as a waterproof wall, or a dry basement.” Truth be told, today’s basement was pretty dry. No standing water (“in-ground pool” in Realtor parlance), but as Howie always points out, concrete and stone leach ground water and at the very least add humidity to every basement.

In addition to uncovering basement problems, rain water is quick to illuminate other issues with a home: clogged down spouts and gutters, leaky roofs, leaky windows, exterior drainage concerns, clogged sewer lines (in some urban areas run off from the roof, as well as the discharge from sump pumps is collected into drains and fed into the sewers causing them to back up in heavy rains) – the list goes on and on. Apart from fire, or maybe termites, water can cause more damage to a home than any other external factor.

During the home buying process, buyer’s typically have the option of having a licensed home inspector review all of the systems within a home – structural, plumbing, roofing, electrical, etc. Inspectors are generalists. They look for safety concerns and overall functionality issues, but are not experts (usually) in one specific area – like HVAC systems. They also are not code-enforcement officers and do not use municipal building codes as their yard stick for evaluation.
The home inspection is paid for by the buyer, and can be the basis in some cases to negotiate for the seller to make repairs to the home, or in some cases terminate the transaction. I tell all homebuyers that they should not expect to get any concessions at all after a home inspection and that they should be comfortable with the negotiated terms as they stand. That said, if the inspection truly brings to the fore an issue, or issues that were not expected, buyers should not be shy about trying to see if repairs can be made by the seller or in lieu of those repairs if they can be compensated. Regardless, money spent for a home inspection or inspections is not refundable.

Gooey Looie’s
Somehow today the subject of cheesesteaks came up and Howie, posed the “what’s your favorite” question. I noted that I am not a Pat’s vs. Geno’s guy (for non-Philadelphia area residents both of these South Philadelphia institutions build sandwiches with thinly sliced beef (with or without grilled onions) layered with cheese on a hoagie roll) but instead I am a big fan of a lunch truck in University City (Sophie’s) and in the suburbs, am partial to the Hungry A in Broomall. Turns out that Howie also thinks the Pat’s/Geno’s debate is for out-of-towners, and that although he lived around the corner from Cosmi’s (see Savoring South Philly), his favorite cheesesteak comes from a Pennsport deli called Gooey Looie’s at Moyamensing & Moore. Perhaps on my next rainy day inspection in Pennsport I will taste for myself!

Tastefully Done Overbrook Rehab

I've been showing properties off and on to Dawn for a few months and today we saw a true gem in Overbrook. A well renovated row home with gleaming original hardwood floors with exquisite inlay details on both the first and 2nd floors. The open floor plan on the first floor combined a living room with fireplace (non-functional) and crown molding, dining room with crown molding and a kitchen with new laminate floor and updated countertops. The rear yard was terraced and included boxes for plantings as well as a hardscaped patio and lower entrance to the finished basement. The pricetag was a very affordable $125,000 on a tree-lined block.

The home screams "Pride of Ownership" without adding over-the-top, trendy, super-improvements. It's amazing what polyurethane, paint and a little elbow grease can do -- all fairly inexpensive improvements -- to improve a seller's chance of getting an offer in a buyer's market. An article in today's Wall Street Journal, which was adapted from David Crook's "The Wall Street Journal Complete Home Owner's Guidebook" published last year, speaks to the fact that most home improvements will not return their value when it comes time to re-sell a house. Even an upscale kitchen renovation returns only 74 cents on the dollar, and a rehabbed bathroom just 68 cents, according to the article. He points out that some maintenance does have to be done:
"It's not a discretionary expense to fix a broken window, replace a worn-out furnace or sometimes even to add a new bathroom. The buyer of a fixer-upper with a kitchen that hasn't seen a paint brush or a scouring pad since 1967 doesn't have a choice but to renovate."

Today's home in Overbrook really does encapsulate this philosophy: all the rooms are well maintained: bathroom tile work is all in tact, kitchen is clean with older cabinets that have been repainted, etc. Without granite and new appliances, the home still shows heads and shoulders above all else in the market right now.

Savoring South Philly

No matter what people are saying about the awful state of the real estate market, this is a great market for first time homebuyers and investors. There are lots of homes to choose from in most areas, interest rates are extremely low, sellers are motivated and buyers are in short supply. That all spells a great Buyer’s Market.

I showed houses to Evan and Katie today – first time homebuyers looking to purchase a 2-3 bedroom rowhome in Philadelphia, perhaps in South Philadelphia. Today we looked at one home in Fishtown (just northeast of the Northern Liberties along the I-95 corridor) and several other properties on both sides of Broad Street below Washington Avenue. On the west side of broad we looked at new construction and some rehabbed properties right around $200K. Many of them featured granite kitchens and finished basements and ranged from 960 square feet to 1700 square feet. The neighborhoods were south of Graduate Hospital and ran from Broad over to Point Breeze. On the east side of Broad we looked at similarly priced rehabbed rowhomes in the 1000-1200 square foot range as well below Bella Vista.

Philly Delis
At the end of the day Evan mentioned that we were really close to Cosmi’s, a South Philly delicatessen that I had never been to. I love deli food, and Philadelphia more than holds its own against the great lower Manhattan eateries that pile on the corned beef. I am partial to Koch’s Take Out Shop in University City (4309 Locust St), which I have been frequenting for more than 20 years. Now run by Ezra and Raffi, they still build the great sandwiches with mounds of fresh, thinly sliced lunch meat that would have made Frances Koch proud. In the Italian Market area (abutting Bella Vista), I am very fond of Chickie’s Italian Deli at 1014 Federal Street for “The Original Veggie Hoagie” which is piled high with baked eggplant, sautéed broccoli rabe, roasted peppers and sharp provolone on a seeded Sarcone’s roll. So at 4pm today, with a new deli to experience just a few blocks away, I ventured to 8th and Dickinson to check out Cosmi’s Deli.
It’s a very unassuming corner store – a neighborhood staple on many city blocks – which I have passed dozens of times over the years (mostly on my way to Termini Bros bakery a block further south on 8th Street). Inside the menu boasts it’s 2004 and 2008 “Best of Philly” Cheesesteak awards and offers an Italian Chicken Hoagie (Missanelli’s) that Evan speaks highly of – marinated, grilled chicken breast topped with prosciutto, sharp provolone and either roasted or long hot peppers. It was 4pm, and I was going home to make dinner (Indian Chicken and Potatoes with ginger, onion, garlic, cardamom, turmeric and cinnamon from Madhur Jaffrey’s “An Invitation to Indian Cooking”), so a hoagie was not on my agenda; if it were, I think the prosciutto with fresh mozzarella and roasted peppers on a seeded roll would have been my choice. Instead, I cruised the center aisle which featured packaged foods including DiBruno’s cheese spreads, sharp provolone bites and Zayda’s Kosher Hot Pickles, the latter of which I took home.

Small Projects Add Value

Nobody likes clutter.
One of the toughest conversations I have when taking a new listing involves the need for clients to get temporary off-site storage, or permanent dumpster space. One man’s cherished knickknacks are a potential buyer's trash.

I always tell sellers that they should take a hard look at anything they may plan to get rid of after moving, and preemptively remove it from the premises. I know it’s tough to do as purging is time consuming, but I learned the costly lesson the hard way when I last moved. I de-cluttered our home and filled the basement with fairly neatly stacked boxes of possessions. My wife insisted that we should just get rid of stuff, but my need to get the house on the market quickly obfuscated her common sense. Our 7-minute move to a larger suburban home necessitated two moving trucks and took the crew of four 10 hour$. Over the next weeks we proceeded to throw away the better part of a moving truck – mostly box after box from the previous basement.

So I have reformed – well maybe not entirely. I still love my stuff and so do our kids. But a few times a year we do some things to prevent another wasteful and costly move.

The Big Purge
Yesterday, we did the “big purge” with our kids. We took a few hours of two-on-one time with each child going through all of their belongings in their bedrooms. The eight-year-old learned that there really can be too many stuffed animals, and that having the World’s largest collection of miniature bobble-head birds may not be all that matters in life. During the process we discovered toys and games that had never been opened or played with and made decisions to donate some to good will. In all four large trash bags of stuff is leaving the house! Cost to us: 0!

Coat Closet Cubby Shelf
Of course, there are the belonging which we do not wish to part with. For those, we are constantly looking for better ways to keep and/or display them. Which brings us to today’s small project: the Coat Closet Cubby Shelf. While kitchen and bathroom projects may be sexier, today’s $14-trip-to-Home Depot project took less than an hour and will help us hold on to stuff in a way that the next buyer may actually (in a small way) appreciate.

Our hall closet has a rod for hanging coats, and until today a single shelf upon which are piled hats, scarves, gloves and mittens for our entire family. That shelf, despite many organization attempts, some including plastic containers, became unruly whenever disrupted while searching for the right accessory. Today, we added a 2nd shelf above the existing shelf, and between the two shelves added cubbies to keep belongings sorted. The custom shelf fits perfectly in the space, and someday will be sold with the home.

Away We Go

It's January 1st, 2009, and keeping with my New Year's resolutions, I am starting this long-considered blog today. It is my first foray into the blogosphere and done with trepidation: Will I be able to keep the content fresh (this concern kept me from writing any content in 2008, though I created this account exactly a year ago today)? Will I be able to keep the content engaging? Will my subjects be useful? Will my musings resonate?

I hope this blog will combine two of my great joys in life -- real estate and food. I am a licensed real estate broker in Pennsylvania selling primarily residential real estate in Philadelphia and the surrounding Pennsylvania suburbs. I sell properties (single-family suburban homes, urban townhomes, condominiums, multi-family buildings, etc.) and enjoy representing both buyers and sellers. I also love to eat -- pretty much everything except mushroom pizza. I love eating in restaurants wherever my travels take me and love cooking at home for my wife and kids. I hope that I can share the tastes of the neighborhoods I visit with my readers and in doing so provide additional comment about the community in which I work and play.

On New Years Eve, I showed homes in Philadelphia in the morning -- some great rowhomes in Overbrook and Wynnefield (West Philadelphia almost bordering the Philadelphia Main Line), and then ventured into Center City for some last-minute provisions from DiBruno Brothers for a New Years Eve meal. I combined my two favorite foods last night making vegetarian sushi -- maki made with Shitaki mushrooms (sauteed with teriyaki sauce), avocado, roasted red peppers and cucumbers -- and cheese, the result of my trip to DiBrunos. The cheese plate featured Fromage Dauphinois -- soft and buttery, an aged cows milk gouda and a hard Alpine cheese. We rounded out the dinner with a brie baked in puff pastry with apples, walnuts and rum mounded upon hunks of sourdough or pumpernickel baguette.

I hope that I have whet your appetite and look forward to sharing more in the days ahead.