Michael Prince | July 26, 2023
Welcome to our comprehensive analysis of the Philadelphia metro real estate market for June 2023. In this report, we'll delve into the current state of housing inventory, buyer demand, home prices, and other essential factors that are shaping the region's competitive market. Let's explore the key highlights from the June market report.
Declining Inventory and Rising Home Prices: Over the past two months, the Philadelphia metro area has experienced a decline in housing inventory, intensifying the already competitive market. Currently, there is just 1.59 months of supply available, down by 15.1% compared to the previous year. Low inventory, coupled with strong buyer demand, has propelled home prices to new heights. In June 2023, the median sales price rose by 4.2% from the previous year, reaching a record high.
Competitive Market and Quick Transactions: Philadelphia's real estate market remains incredibly fast-paced, with homes spending a median of only 8 days on the market in June. Buyers should be prepared to act swiftly to secure their desired properties in this competitive environment.
Buyer Demand and Limited Supply: The primary driver of the competitive market is the low supply of homes, which currently stands at just one-third of pre-pandemic levels. Homeowners have been reluctant to list their properties due to historically low mortgage rates, making them feel "locked in" to their current homes. As interest rates are expected to decrease over the next six months, more listings may become available, but a significant increase in inventory is not anticipated.
New Record Median Sale Price: The median sale price in Philadelphia reached a new high in June 2023, climbing to $370,000, reflecting a 4.2% increase from the previous year. Each property type, including detached, attached, and condo, achieved record-high prices during the same period, driven by steady demand and limited housing supply.
Pending Sales and Closed Transactions: Closed sales in the Philadelphia metro area experienced a decline of 21.0% compared to the previous year, largely attributed to low inventory and higher interest rates. However, there was a 16.5% increase in closed sales between May and June, primarily led by single-family detached homes. New pending sales decreased by 18.6% year-over-year, with all property types experiencing declines.
Inventory Insights: Active listings in June 2023 declined by 15.1% compared to the previous year, affecting all property types. Detached homes saw a significant reduction, with only 26% of the number of listings compared to June 2019. Condos and attached properties also experienced declines, but to a lesser extent, with 39% and 56% of 2019 inventory, respectively.
Showing Activity and Seasonal Trends: In June 2023, there were 155,861 showings in the Philadelphia metro area, representing a 20.2% decrease from the previous year. With active listings lower than the prior year, showing activity is expected to remain below 2022 levels. Additionally, showings tend to decrease seasonally from May to June.
The Philadelphia metro real estate market continues to be characterized by limited housing supply, high buyer demand, and rising home prices. As inventory remains low, buyers must be prepared for a competitive market with quick transactions. While there is hope for a potential increase in new listings as interest rates decline, significant relief for buyers seeking homes is not expected in the near term.
Disclaimer: The data presented in this report is based on information available as of June 2023 and is subject to change in the future. Potential buyers, sellers, and investors are advised to conduct their research and seek professional guidance before making any real estate decisions.
Stay up to date on the latest real estate trends.
Michael Prince | October 16, 2023
Michael Prince | September 15, 2023
August Sees Record Home Prices and Fierce Competition Amidst Low Inventory
Michael Prince | August 14, 2023
Michael Prince | July 26, 2023
Michael Prince | July 11, 2023
Michael Prince | June 13, 2023
Michael Prince | April 18, 2023
Michael Prince | April 10, 2023
Michael Prince | November 3, 2022
Reflections on 7 Years in Real Estate
Michael's experience, knowledge, and outstanding communication skills enable him to advocate for clients and expertly negotiate on their behalf. Whether you are looking to buy your dream home or sell your property at the best possible price, Michael is committed to delivering exceptional results. His friendly and personable demeanor makes him both well-respected by his peers and a trustworthy and reliable agent for his clients.