Real Estate

BHHS: Home Buyers Are Poised to Return to the Market

- by MyChesCo
Home buying© FatCamera / Getty Images Signature / Canva

DEVON, PA — Across the Greater Philadelphia area, the real estate market is expected to pick up in momentum on track with seasonal trends. As interest rates drop to the lowest levels in months, potential home buyers are poised to return to the market. While listings and closed sales declined in January 2023 as compared to January 2022, pending sales and showings were increased over December. As we enter the spring real estate market, Berkshire Hathaway HomeServices Fox & Roach, REALTORS®/The Trident Group expects a rebound in listings and sales.

Number of Properties Sold Decreased

The number of properties sold overall in January of 2023, in the 12-county greater Philadelphia region, decreased by 37 percent from this time last year, according to (BHHS) Fox & Roach’s January HomExpert Market Report©. There were 4,004 homes sold in January 2023, compared to 6,354 sold in January 2022.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 40.1 percent, with 2,309 sold in January 2023, compared to January 2022’s 3,857 homes sold. In Delaware County, home sales were down 44.2 percent. Bucks County had the second highest decrease, down 42.4 percent compared to January 2022. Philadelphia County had a 41.9 percent decrease compared to January 2022.
  • In BHHS Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 34.2 percent, with 1,176 sold in January 2023 and 1,786 sold in January 2022. Salem County had the largest decrease, down 38.8 percent and Burlington County had the second largest decrease, down 38.3 percent compared to January 2022. Camden County had a 33.4 percent decrease.

Monthly Average Inventory Increased

The number of homes for sale overall in the 12-county Greater Philadelphia region is up by 2.8 percent, with 17,458 homes on the market in January 2023, compared to 16,982 for sale in January 2022.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average inventory is up by 6.4 percent, with 11,611 for sale in January 2023 and 10,914 for sale in January 2022. Philadelphia County increased 13.5 percent and Bucks County increased 5.6 percent. Meanwhile, Chester County decreased by 10 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, the average inventory is down by 2.6 percent, with 4,134 sold in January 2023 and 4,243 sold in January 2022. Mercer County had the largest drop, down by 13.3 percent and Salem County had the second largest drop, down by 10.9 percent. Meanwhile, Gloucester County had an 11.6 percent increase compared to January 2022.

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 18.8 percent compared to January 2022, with 38 average days on market in January 2023 and 32 average days on market in January 2022.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average days on market increased 11.3 percent, with 33.4 days in 2023 and 30 average days on the market in January 2022. Bucks County’s average days on market increased 25 percent, while Philadelphia County’s average days on market increased 18 percent. Montgomery County average days on market increased 15 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, the average days on market increased 42.6 percent, from 34 average days on market in January 2022 to 48 average days on market in January 2023. Mercer County’s average days on market increased by 27.3 percent while Camden County’s increased by 23.3 percent.

Average Sale Prices Increased

The average sale price in the 12-county greater Philadelphia region increased by 3.9 percent compared to January 2022, from $360,357 in January 2022 to $374,428 in January 2023.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average sale price was $430,541 in January 2023 compared to $411,553, showing a 4.6 percent increase. Bucks County had the highest increase of 9.3 percent compared to January 2022. Montgomery County had the second highest increase in average sale price by 5.8 percent and Chester County had a 4.9 percent increase.
  • In BHHS Fox & Roach’s New Jersey market areas, the average sale price was $315,481 in January 2023 compared to $307,873, showing a 2.5 percent increase from January 2022. Gloucester County had the highest increase in sale price of 7.4 percent. Burlington County had a 4.2 percent increase compared to January 2022 and Camden County increased 1.4 percent.

Properties Under Contract Decreased

The number of properties under contract overall in the 12-county greater Philadelphia region is down by 15.8 percent, with 5,126 homes under contract in January 2023, compared to 6,134 homes under contract in January 2022.

  • In BHHS Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 20.6 percent, from 3,035 under contract in January 2023 to 3,822 in January 2022. Philadelphia County had the biggest decreases compared to January 2022, of 24.3 percent, while Delaware County decreased 22.3 percent compared to January 2022 and Chester County decreased 20.2 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, properties under contract have decreased by 6.6 percent from 1,584 under contract in January 2022 to 1,480 in January 2023. Mercer County had the biggest decrease compared to January 2022, of 14.7 percent, while Burlington County decreased 8.9 percent compared to January 2022.

Main Line:

  • Home sales on the Main Line’s nine major municipalities/townships have decreased 29.8 percent, with 139 homes sold in January 2023, compared to 198 homes sold in January 2022.
  • Average sale price increased by 0.5 percent, from $733,311 in January 2022 to $736,642 in January 2023.
  • Properties under contract have decreased by 33.8 percent, with 129 in January 2023 and 195 in January 2022.
  • Monthly average inventory decreased by 5.7 percent, with 382 homes for sale in January 2023 and 405 homes for sale in January 2022.
  • Average days on market decreased by 3 percent, with 32 days on market in January 2023 and 33 days on market in January 2022.

Delaware:

  • Total properties sold in Kent and New Castle Counties are down by 26.5 percent, from 697 sold in January 2022 to 512 sold in January 2023. New Castle County had a 28.6 percent decrease in properties sold in January 2023, compared to January 2022 and Kent County decreased by 21.1 percent.
  • Average sale price in Delaware is up by 4.4 percent, from $316,480 in January 2022 to $330,533 in January 2023. New Castle County sale price increased 3 percent and Kent County increased 6.1 percent.
  • Average days on market in Delaware increased by 33.3 percent, from 24 days in January 2022 to 32 days in January 2023. The average days on market in New Castle County increased 35 percent.
  • Monthly average inventory in Delaware decreased by 5.4 percent, from 892 homes for sale in January 2022 to 844 for sale in January 2023. In New Castle County, there were 11.6 percent less homes for sale.
  • Properties under contract in Delaware decreased by 10.5 percent, from 714 properties under contract in January 2022 to 639 properties in January 2023.

Jersey Shore:

  • Atlantic County’s home sales decreased by 47.3 percent, with 203 homes sold in January 2023 and 385 homes sold in January 2022. Average prices of homes are up by 16 percent, from $435,924 in January 2022 to $504,419 in January 2023. Properties under contract decreased by 28.8 percent, from 455 under contract in January 2022 to 324 under contract in January 2023. Average days on market is down by 20.3 percent compared to January 2023. Monthly average inventory is up by 6.4 percent.
  • Cape May County home sales decreased 23.6 percent, with 139 homes sold in January 2023 and 182 sold in January 2022. The average price of properties sold increased by 7 percent, from $857,068 in January 2022 to $915,781 in January 2023. The monthly average inventory is up by 10.7 percent and properties under contract are down by 35 percent, compared to January 2022.

Lehigh Valley:

  • Home sales in the Lehigh Valley decreased by 37.7 percent, with 347 homes sold in January 2023 compared to 557 homes sold in January 2022.
  • Average sale price on homes is up by 8.3 percent, from $313,110 in January 2022 to $339,127 in January 2023.
  • Monthly average inventory is down by 12.8 percent, with 1,343 homes for sale in January 2023 compared to 1,541 homes for sale in January 2022.
  • Average days on market increased by 22.7 percent, from 22 days in January 2022 compared to 27 days in January 2023.
  • Properties under contract have increased by 0.2 percent, with 463 properties under contract in January 2023 and 462 under contract in January 2022.

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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