Philadelphia Housing Market Analysis - August 2024
The Philadelphia, PA metro area housing market in August 2024 presents a nuanced landscape with various indicators showing both stability and shifts. The Median Sales Price remains steady at $300,000, showing no change year-over-year (YoY). This stability in sales price contrasts with a slight decrease in the Median List Price, which is down by 0.3% YoY to $278,999.50.
One notable trend is the increase in the median Price Per Square Foot, which has risen by 7.1% YoY to $212.20. Similarly, the Median List Price per square foot has increased by 6.4% YoY to $205.27. These figures suggest a growing valuation of property on a per-square-foot basis, indicating a potential shift in buyer preferences towards more compact, higher-value properties.
The number of Homes Sold has decreased by 3.3% YoY, totaling 1,804 units. Pending Sales have also seen a decline, down by 3.6% YoY to 1,859 units. New Listings have slightly decreased by 1.8% YoY, with 2,245 new properties entering the market. Despite these declines, the inventory has increased by 2.3% YoY to 5,638 units, providing a broader selection for potential buyers.
The Months of Supply, a critical indicator of market balance, has increased by 10.0% YoY to 3.10 months. This increase suggests a shift towards a more balanced market, potentially easing the competitive pressure on buyers. The Median Days on Market have seen a slight increase of 2.0% YoY, now standing at 41 days, indicating that homes are taking marginally longer to sell.
The average sale to list ratio remains robust at 98.6%, with a minimal decrease of 0.1% YoY. However, the percentage of Homes Sold above list price has decreased by 1.3% YoY to 30.0%, reflecting a slight cooling in competitive bidding. Price Drops have also seen a minor decrease of 0.7% YoY, now at 28.9%, suggesting that sellers are adjusting their expectations in response to market conditions.
Lastly, the percentage of homes going off-market within two weeks has decreased by 2.7% YoY to 42.1%, indicating a slight slowdown in the speed at which homes are being snapped up by buyers.
Overall, the Philadelphia housing market in August 2024 shows signs of stabilization with a mix of steady prices and slight declines in sales and listings. The increase in inventory and Months of Supply points towards a more balanced market, providing opportunities for both buyers and sellers to navigate the current real estate landscape effectively.
