Greater Philadelphia Housing Market Struggles Amidst Low Inventory and Rising Sales Prices

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DEVON, PA — Despite the anticipated increase in spring market activity, sales have only marginally increased month-over-month. As compared to April 2022, the number of homes sales in the Greater Philadelphia area have continued to decrease in all 12 counties, according to Berkshire Hathaway HomeServices Fox & Roach, REALTORS®/The Trident Group’s HomExpert Report. A low inventory of homes for sale has led to rising sales prices. “The market remains uncertain in our region. Buyers are facing high sales prices and competition, as there are not enough homes for sale. Meanwhile, sellers can expect multiple offers and for their homes to sell quickly,” comments Fox & Roach, REALTORS® CEO, Larry Flick V. “As mortgage rates continue to decrease, we expect that more buyers and sellers will soon become more motivated to enter the market,” he continues.

Number of Properties Sold Decreased

The number of properties sold overall in April of 2023, in the 12-county greater Philadelphia region, decreased by 28.9 percent from this time last year, according to Fox & Roach’s April HomExpert Market Report©. There were 5,248 homes sold in April 2023, compared to 7,384 sold in April 2022.

  • In Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 29.7 percent, with 3,205 sold in April 2023, compared to April 2022’s 4,560 homes sold. In Montgomery County, home sales were down 33 percent. Chester County had the second highest decrease, down 30.3 percent compared to April 2022. Bucks County had a 28.8 percent decrease compared to April 2022.
  • In Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 25.8 percent, with 1,454 sold in April 2023 and 1,960 sold in April 2022. Mercer County had the largest decrease, down 34.9 percent and Burlington County had the second largest decrease, down 25.6 percent compared to April 2022. Camden County had a 23.8 percent decrease.

Monthly Average Inventory Decreased

The number of homes for sale overall in the 12-county Greater Philadelphia region is down by 10.7 percent, with 18,613 homes on the market in April 2023, compared to 20,854 for sale in April 2022.

  • In Fox & Roach’s Pennsylvania market areas, the average inventory is down by 5.7 percent, with 12,758 for sale in April 2023 and 13,523 for sale in April 2022. Montgomery County decreased 17.5 percent and Bucks County decreased 12.6 percent. Meanwhile, Delaware County decreased by 11.6 percent and Chester County decreased 8.9 percent.
  • In Fox & Roach’s New Jersey market areas, the average inventory is down by 22.9 percent, with 4,063 sold in April 2023 and 5,273 sold in April 2022. Mercer County had the largest drop, down by 28.6 percent and Camden County had the second largest drop, down by 25.6 percent. Meanwhile, Burlington County had a 22.8 percent increase compared to April 2022.
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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 41.7 percent compared to April 2022, with 34 average days on market in April 2023 and 24 average days on market in April 2022.

  • In Fox & Roach’s Pennsylvania market areas, the average days on market increased 32.7 percent, with 29.2 days in 2023 and 22 average days on the market in April 2022. Bucks County’s average days on market increased 47 percent, while Philadelphia County’s average days on market increased 44 percent. Delaware County average days on market increased 24 percent.
  • In Fox & Roach’s New Jersey market areas, the average days on market increased 68.2 percent, from 26 average days on market in April 2022 to 44 average days on market in April 2023. Gloucester County’s average days on market increased by 63.2 percent while Burlington County’s increased by 60 percent.

Average Sale Prices Increased

The average sale price in the 12-county greater Philadelphia region increased by just 0.7 percent compared to April 2022, from $384,190 in April 2022 to $386,929 in April 2023.

  • In Fox & Roach’s Pennsylvania market areas, the average sale price was $445,010 in April 2023 compared to $439,016, showing a 1.4 percent increase. Montgomery County had the highest increase of 6.9 percent compared to April 2022. Chester County had the second highest increase in average sale price by 3.7 percent and Delaware County had a 3.2 percent increase.
  • In Fox & Roach’s New Jersey market areas, the average sale price was $325,554 in April 2023 compared to $321,597, showing a 1.2 percent increase from April 2022. Gloucester County had the highest increase in sale price of 4 percent. Camden County had a 3.2 percent increase compared to April 2022.

Properties Under Contract Decreased

The number of properties under contract overall in the 12-county greater Philadelphia region is down by 15.5 percent, with 6,862 homes under contract in April 2023, compared to 8,125 homes under contract in April 2022.

  • In Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 16.4 percent, from 4,265 under contract in April 2023 to 5,103 in April 2022. Montgomery County had the biggest decreases compared to April 2022, of 20.1 percent, while Philadelphia County decreased 16.9 percent compared to April 2022 and Bucks County decreased 14.9 percent.
  • In Fox & Roach’s New Jersey market areas, properties under contract have decreased by 16.7 percent from 2,133 under contract in April 2022 to 1,777 in April 2023. Burlington County had the biggest decrease compared to April 2022, of 23.5 percent, while Camden County decreased 18.8 percent compared to April 2022.
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Main Line:

  • Home sales on the Main Line’s nine major municipalities/townships have decreased 28.9 percent, with 177 homes sold in April 2023, compared to 249 homes sold in April 2022.
  • Average sale price increased by 15.4 percent, from $678,184 in April 2022 to $782,459 in April 2023.
  • Properties under contract have decreased by 19.9 percent, with 258 in April 2023 and 322 in April 2022.
  • Monthly average inventory decreased by 15.9 percent, with 504 homes for sale in April 2023 and 599 homes for sale in April 2022.
  • Average days on market decreased by 7 percent, with 25 days on market in April 2023 and 27 days on market in April 2022.

Delaware:

  • Total properties sold in Kent and New Castle Counties are down by 31 percent, from 846 sold in April 2022 to 584 sold in April 2023. New Castle County had a 36.8 percent decrease in properties sold in April 2023, compared to April 2022 and Kent County decreased by 14.2 percent.
  • Average sale price in Delaware is up by 3.9 percent, from $337,508 in April 2022 to $350,633 in April 2023. New Castle County sale price increased 10.7 percent.
  • Average days on market in Delaware increased by 32.4 percent, from 19 days in April 2022 to 25 days in April 2023. The average days on market in Kent County increased 63.2 percent.
  • Monthly average inventory in Delaware decreased by 12.1 percent, from 1,001 homes for sale in April 2022 to 880 for sale in April 2023. In New Castle County, there were 17.2 percent less homes for sale.
  • Properties under contract in Delaware decreased by 5.9 percent, from 862 properties under contract in April 2022 to 811 properties in April 2023.

Jersey Shore:

  • Atlantic County’s home sales decreased by 34.6 percent, with 512 homes sold in April 2023 and 335 homes sold in April 2022. Properties under contract decreased by 17.8 percent, from 473 under contract in April 2022 to 389 under contract in April 2023. Average days on market is up by 11.6 percent compared to April 2023. Monthly average inventory is up by 0.1 percent.
  • Cape May County home sales decreased 33.1 percent, with 254 homes sold in April 2023 and 170 sold in April 2022. The average price of properties sold decreased by 19 percent, from $823,479 in April 2022 to $663,448 in April 2023. The monthly average inventory is up by 2 percent and properties under contract are down by 13.4 percent, compared to April 2022.
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Lehigh Valley:

  • Home sales in the Lehigh Valley decreased by 34.1 percent, with 421 homes sold in April 2023 compared to 639 homes sold in April 2022.
  • Average sale price on homes is up by 16.2 percent, from $311,239 in April 2022 to $361,744 in April 2023.
  • Monthly average inventory is down by 33.1 percent, with 1,257 homes for sale in April 2023 compared to 1,879 homes for sale in April 2022.
  • Average days on market increased by 71.4 percent, from 14 days in April 2022 compared to 24 days in April 2023.
  • Properties under contract have decreased by 16.7 percent, with 589 properties under contract in April 2023 and 707 under contract in April 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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