Philadelphia metro market experiencing continued price growth
Median Sales Price: In August, the median sales price in the Philadelphia metro area reached a record high of $370,000 (a 5.7% increase over last year). Prices have been rising faster compared to many other parts of the country.
Strong Demand: The price growth is attributed to strong demand and relative affordability. Buyers have remained active in the market despite higher mortgage rates.
Low Inventory: With just 9,460 active listings at the end of August this translates to a 14.9% decrease over last year. The suburbs are experiencing the tightest inventory conditions, with less than 1.5 months of supply available.
Competitive Market: The market remains competitive, with multiple offers and offers over the list price still common. The median days on market decreased to just nine days in August, one day faster than the previous year.
Market Conditions: The Bright MLS T3 Home Demand Index indicates that market activity has eased in September, which is typical for the fall season. Last year, the index showed steady demand, but this year, it has shifted to slow market conditions.
Price Escalation: Prices have risen significantly since before the pandemic. The median sales price is now more than 30% higher.
Affordability Challenge: Affordability is becoming a growing challenge for buyers in the region. Higher mortgage payments have not deterred buyers from remaining active in the market.
Future Outlook: New listing activity is expected to remain low for the remainder of the year. The supply is still expected to be very low, and prices are likely to continue rising.
If you have any questions or comments about our current real estate market, please do not hesitate to call me at 215-630-9363. www.josephcairo.com