A Perfect Storm for Home Buyers: Is This the Right Time for You to Buy?

Joan DocktorJoan Docktor, President of Berkshire Hathaway HomeServices (BHHS) Fox & Roach

DEVON, PA — “We are seeing a continued increase of houses available for sale, mostly due to a slowdown in buyer demand,” remarked Berkshire Hathaway HomeServices (BHHS) Fox & Roach President Joan Docktor. “We believe that interest rates have hit their peak and are beginning to decrease. Home price increases have also begun to slow. This will have a positive influence on more buyers considering buying and this is good news for the market,” Docktor continues.

Number of Properties Sold Decreased

The number of properties sold overall in November of 2022, in the 12-county greater Philadelphia region, decreased by 34.8 percent from this time last year, according to (BHHS) Fox & Roach’s November HomExpert Market Report©. There were 5,492 homes sold in November 2022, compared to 8,426 sold in November 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 35.8 percent, with 3,238 sold in November 2022, compared to November 2021’s 5,044 homes sold. Montgomery County had the biggest decrease, down 37.4 percent and Philadelphia County had the second biggest decrease, down 37.1 percent compared to November 2021. Chester County had a 36.7 percent decrease compared to November 2021.
  • In BHHS Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 30.1 percent, with 1,603 sold in November 2022 and 2,293 sold in November 2021. Mercer County had the largest decrease, down 33.9 percent and Burlington County had the second largest decrease, down 30.6 percent compared to November 2021. Camden County had a 30.3 percent decrease.

Monthly Average Inventory Decreased

The number of homes for sale overall in the 12-county Greater Philadelphia region is down by 9.1 percent, with 19,855 homes on the market in November 2022, compared to 21,853 for sale in November 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average inventory is down by 6.6 percent, with 13,171 for sale in November 2022 and 14,095 for sale in November 2021. Chester County decreased 27.8 percent and Delaware County decreased 23.1 percent. Bucks County decreased 16.1 percent and Montgomery County decreased 14.9 percent compared to November 2021.
  • In BHHS Fox & Roach’s New Jersey market areas, the average inventory is down by 13.8 percent, with 4,740 sold in November 2022 and 5,500 sold in November 2021. Mercer County had the largest drop, down by 21.4 percent and Camden County had the second largest drop, down by 18.1 percent. Gloucester County had a 10.5 percent decrease compared to November 2021.
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Average Days on Market Increased

The average days a house stayed on the market overall in the 12-county greater Philadelphia area has increased by 7.1 percent compared to November 2021, with 30 average days on market in November 2022 and 28 average days on market in November 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average days on market decreased 1.5 percent, with 26 days in 2022 and 26.4 average days on the market in November 2021. Montgomery County’s average days on market increased 20 percent, while Philadelphia County’s average days on market decreased 13 percent. Chester and Delaware counties average days on market decreased 5 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, the average days on market increased 65.6 percent, from 31 average days on market in November 2021 to 51 average days on market in November 2022. Camden County’s average days on market increased by 11.5 percent while Burlington County’s increased by 3.4 percent.

Average Sale Prices Increased

The average sale price in the 12-county greater Philadelphia region increased by 5 percent compared to November 2021, from $366,958 in November 2021 to $385,485 in November 2022.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average sale price was $442,076 in November 2022 compared to $418,862, showing a 5.5 percent increase. Delaware County had the highest increase of 9.8 percent compared to November 2021. Montgomery County had the second highest increase in average sale price by 8 percent and Bucks County had a 6.2 percent increase.
  • In BHHS Fox & Roach’s New Jersey market areas, the average sale price was $314,875 in November 2022 compared to $302,367, showing a 4.1 percent increase from November 2021. Camden County had the highest increase in sale price of 12.4 percent. Burlington County had a 8.1 percent increase compared to November 2021 and Gloucester County increased 3 percent.

Properties Under Contract Decreased

The number of properties under contract overall in the 12-county greater Philadelphia region is down by 32 percent, with 5,147 homes under contract in November 2022, compared to 7,569 homes under contract in November 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 35.3 percent, from 2,974 under contract in November 2022 to 4,595 in November 2021. Philadelphia County had the biggest decreases compared to November 2021, of 39.5 percent, while Delaware County decreased 34.7 percent compared to November 2021 and Chester County decreased 34.5 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, properties under contract have decreased by 23.5 percent from 2,021 under contract in November 2021 to 1,546 in November 2022. Camden County had the biggest decrease compared to November 2021, of 31.1 percent, while Gloucester County decreased 25.5 percent compared to November 2021.
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Main Line:

  • Home sales on the Main Line’s nine major municipalities/townships have decreased 37 percent, with 189 homes sold in November 2022, compared to 300 homes sold in November 2021.
  • Average sale price decreased by 3.2 percent, from $757,615 in November 2021 to $733,728 in November 2022.
  • Properties under contract have decreased by 29.2 percent, with 160 in November 2022 and 226 in November 2021.
  • Monthly average inventory decreased by 13.4 percent, with 504 homes for sale in November 2022 and 582 homes for sale in November 2021.
  • Average days on market decreased by 20 percent, with 24 days on market in November 2022 and 30 days on market in November 2021.

Delaware:

  • Total properties sold in Kent and New Castle Counties are down by 40.1 percent, from 1,066 sold in November 2021 to 639 sold in November 2022. New Castle County had a 39.8 percent decrease in properties sold in November 2022, compared to November 2021 and Kent County decreased by 40.6 percent.
  • Average sale price in Delaware is up by 9.6 percent, from $310,488 in November 2021 to $340,176 in November 2022. New Castle County sale price increased 10.6 percent and Kent County increased 8.4 percent.
  • Average days on market in Delaware increased by 19 percent, from 21 days in November 2021 to 25 days in November 2022. The average days on market in Kent County increased 36.4 percent.
  • Monthly average inventory in Delaware decreased by 12.6 percent, from 1,096 homes for sale in November 2021 to 957 for sale in November 2022. In New Castle County, there were 16 percent less homes for sale, and in Kent County, there were 6 percent more homes for sale.
  • Properties under contract in Delaware decreased by 33.5 percent, from 929 properties under contract in November 2021 to 618 properties in November 2022.

Jersey Shore:

  • Atlantic County’s home sales decreased by 44.8 percent, with 293 homes sold in November 2022 and 531 homes sold in November 2021. Average prices of homes are up by 19 percent, from $456,293 in November 2021 to $544,812 in November 2022. Properties under contract decreased by 39.8 percent, from 470 under contract in November 2021 to 283 under contract in November 2022. Average days on market is up by 7.1 percent compared to November 2022. Monthly average inventory is down by 1.8 percent.
  • Cape May County home sales decreased 36.7 percent, with 186 homes sold in November 2022 and 294 sold in November 2021. The average price of properties sold increased by 2 percent, from $859,342 in November 2021 to $879,908 in November 2022. The monthly average inventory is up by 4.7 percent and properties under contract are down by 33.8 percent, compared to November 2021.
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Lehigh Valley:

  • Home sales in the Lehigh Valley decreased by 32.8 percent, with 519 homes sold in November 2022 compared to 772 homes sold in November 2021.
  • The average sale price on homes is up by 10.9 percent, from $297,287 in November 2021 to $329,715 in November 2022.
  • Monthly average inventory is down by 24.2 percent, with 1,504 homes for sale in November 2022 compared to 1,985 homes for sale in November 2021.
  • Average days on market increased by 37.5 percent, from 28 days in November 2021 compared to 18 days in November 2022.
  • Properties under contract have decreased by 22.8 percent, with 531 properties under contract in November 2022 and 683 under contract in November 2021.

Note, the Greater Philadelphia region includes counties in Southeastern Pennsylvania, Southern New Jersey and Delaware, which are: Philadelphia, Bucks, Chester, Delaware, Montgomery, Burlington, Camden, Gloucester, Mercer, Salem, Kent and New Castle. Main Line data includes Malvern Borough, Tredyffrin Township, Willistown Township, Easttown Township, Haverford, Newtown, Radnor, Narberth, and Lower Merion. Center City data includes zip codes 19102, 19103 (Rittenhouse Square), 19106 (Old City), 19107 (Washington Square), 19123 (Northern Liberties/Fishtown), and 19130 (Fairmount/Art Museum). The Lehigh Valley region includes both Lehigh and Northampton Counties. Additional charts and graphs available upon request. Top municipalities listed include 20 or more sales. Days on Market (DOM) data measures the number of days a property is listed from initial list date in the multiple listing service (MLS) until the property goes under contract.

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