BHHS Fox & Roach President: Houses Are Selling Quickly, At a Higher Cost

BHHS Fox & Roach President Joan DocktorJoan Docktor, BHHS Fox & Roach President

DEVON, PA — “The Greater Philadelphia 12-county region’s 2021 real estate market was robust, despite a number of challenges within the marketplace,” explains BHHS Fox & Roach President Joan Docktor, “there were several distinct trends in pricing and days on the market, many driven by the lack of homes for sale across the region.” Greater Philadelphia home sales in 2021, in the 12-county Greater Philadelphia region, totaled 108,639, showing a 0.3 percent decrease from the 2020 year-end total of 108,933 homes sold, according to Berkshire Hathaway HomeServices (BHHS) Fox & Roach, REALTORS® HomExpert Market Report©.

The 2021 housing trends were consistent throughout the year with a continued need for more homes for sale. This condition drove the market trends so that homes on the market sold quickly, creating a decrease in average days on the market, while average home prices increased. “With not enough homes for sale, there is pent-up demand, driving the quick turn-around in home sales as they are available to purchase,” Doctor explains.

“The continued drop in housing inventory levels has caused the upward swing in average sales price. While that has been good news for homeowners, the impact on housing affordability has been a challenge for buyers,” adds Docktor. This situation created a hot market for sellers, with homes available for sale selling quickly and some homes receiving multiple bids by interested buyers.

Lack of Homes for Sale

Across the 12-county Great Philadelphia region, the monthly average inventory was 40 homes in 2021, down 29.8 percent from 2020’s monthly average inventory of 57. The number of homes available for sale each month decreased in every county in 2021.

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Average Sale Prices Increasing

The average price of homes has increased by 12 percent, from $338,505 in 2020 to $379,186 in 2021. Average sale prices have increased by more than ten percent in all of the 12-counties.

Days on Market Decreasing

The average number of days a home remained on the market, in the 12-county region, decreased from 41 days to 28 days, showing a 31.7 percent decrease. Days on the market have continued to decrease throughout 2021, with all 12 counties having experienced that trend.

Other 2021 Year-End HomExpert Market Report© findings:

Center City

  • Center City home sales increased by 43.5 percent, from 1,502 properties sold in 2020 to 2,155 in 2021. Included in this data is Old City, Washington Sq., Rittenhouse Sq, Fairmount/Art Museum and Northern Liberties.
  • Average sale price in these areas was $581,640, up 5.4 percent from 2020’s $551,640.
  • The average number of days a home remained on the market in Center City decreased by 6 percent, from 80 days in 2020 to 75 days in 2021.

Main Line

  • Homes sales in the Main Line’s nine major municipalities/townships remained almost the same, from 3,159 homes sold in 2020 and 3,578 homes sold in 2021.
  • Average home prices increased from $644,596 in 2020 to $708,125 in 2021, a 9.9 percent shift.
  • The average number of days a home remained on the market decreased from 47 days in 2020 to 24 days in 2021, 48.8 percent drop.

Delaware

  • Combined numbers for Kent and New Castle Counties showed total properties sold up by 14.3 percent, from 10,261 in 2020 to 11,726 in 2021.
  • Average sale price increased by 13.6 percent, from $273,926 in 2020 to $311,227 in 2021.
  • Average days on market dropped by 45.9 percent, from 37 days in 2020 to 20 days in 2021.
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New Jersey and Shore Counties

  • Atlantic County sold 3.2 percent more houses in 2021, with 5,125 sold compared to 4,968 in 2020. Average home prices increased by 24.7 percent from $288,588 in 2020 to $359,848 in 2021. The average number of days a home remained on the market decreased by 34.7 percent, from 79 days in 2020 to 52 days in 2021.
  • Cape May County homes sales decreased by 10.7 percent, from 3,643 total properties sold in 2020 to 3,254 sold in 2021. Average home prices increased by 19.9 percent to $448,614 in 2020 to $538,086 in 2021. The average number of days a home remained on the market decreased from 139 days in 2020 to 120 days in 2021, showing a 14.1 percent decrease.

Lehigh Valley:

  • Home sales in the Lehigh Valley were up by 5.8 percent, with 8,831 poperties sold in 2021 compared to 8,350 sold in 2020.
  • Average sale price on homes is up 13.9 percent, going from $255,573 in 2020 to $291,140 in 2021.
  • Average days on the maraket are down by 36.4 percent, from 33 days in 2020 to 21 days on the market in 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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