Home Prices Expected to Stay High Despite Decrease in Buyer Demand

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DEVON, PA — “We are seeing a decrease in buyer demand causing the number of available homes to slowly build up. This is in spite of the fact that new listings coming onto the market are still well below normal levels,” remarks Berkshire Hathaway HomeServices (BHHS) Fox & Roach President Joan Docktor. “We continue to be in a sellers’ market and so one should not expect price decreases anytime in the near future,” Docktor continues.

Number of Properties Sold Decreased

The number of properties sold overall in September of 2022, in the 12-county greater Philadelphia region, decreased by 23.8 percent from this time last year, according to (BHHS) Fox & Roach’s September HomExpert Market Report©. There were 6,913 homes sold in September 2022, compared to 9,077 sold in September 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 23.8 percent, with 4,070 sold in September 2022, compared to September 2021’s 5,341 homes sold. Chester County had the biggest decrease, down 28.4 percent and Philadelphia County had the second biggest decrease, down 24.3 percent compared to September 2021. Bucks County had a 23 percent decrease compared to September 2021.
  • In BHHS Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 22.2 percent, with 2,000 sold in September 2022 and 2,572 sold in September 2021. Mercer County had the largest decrease, down 27.5 percent and Gloucester County had the second largest decrease, down 23.9 percent compared to September 2021. Burlington County had a 22.4 percent decrease.

Monthly Average Inventory Decreased

The number of homes for sale overall in the 12-county Greater Philadelphia region is down by 13.3 percent, with 21,664 homes on the market in September 2022, compared to 24,992 for sale in September 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average inventory is down by 10 percent, with 14,206 for sale in September 2022 and 15,777 for sale in September 2021. Chester County decreased 28.9 percent and Delaware County decreased 23.7 percent. Montgomery County decreased 21.5 percent and Bucks County decreased 20.4 percent compared to September 2021.
  • In BHHS Fox & Roach’s New Jersey market areas, the average inventory is down by 19.5 percent, with 5,310 sold in September 2022 and 6,593 sold in September 2021. Mercer County had the largest drop, down by 23.7 percent and Burlington County had the second largest drop, down by 20.1 percent. Gloucester County had an 18.6 percent decrease compared to September 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 13 percent compared to September 2021, with 26 average days on market in September 2022 and 23 average days on market in September 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average days on market increased 12.1 percent, with 24 days in 2022 and 21.4 average days on the market in September 2021. Philadelphia County’s average days on market increased 25 percent and Delaware County’s average days on market increased 15 percent. Bucks County average days on market increased 12 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, the average days on market increased 43.2 percent, from 25 average days on market in September 2021 to 36 average days on market in September 2022. Camden County’s average days on market increased by 17.4 percent while Mercer County’s increased by 16.7 percent.

Average Sale Prices Increased

The average sale price in the 12-county greater Philadelphia region increased by 8.6 percent compared to September 2021, from $356,810 in September 2021 to $387,425 in September 2022.

  • In BHHS Fox & Roach’s Pennsylvania market areas, the average sale price was $437,018 in September 2022 compared to $399,768, showing a 9.3 percent increase. Bucks County had the highest increase of 15.4 percent compared to September 2021. Chester County had the second highest increase in average sale price by 12.4 percent and Montgomery County had an 8.3 percent increase.
  • In BHHS Fox & Roach’s New Jersey market areas, the average sale price was $334,797 in September 2022 compared to $297,347, showing a 12.6 percent increase from September 2021. Salem County had the highest increase in sale price of 37.3 percent. Burlington County had a 12.2 percent increase compared to September 2021 and Camden County increased 11.6 percent.

Properties Under Contract Decreased

The number of properties under contract overall in the 12-county greater Philadelphia region is down by 22.5 percent, with 6,363 homes under contract in September 2022, compared to 8,215 homes under contract in September 2021.

  • In BHHS Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 25.4 percent, from 3,613 under contract in September 2022 to 4,832 in September 2021. Chester County had the biggest decrease compared to September 2021, of 33 percent, while Bucks County decreased 28.1 percent compared to September 2021 and Delaware County decreased 25 percent.
  • In BHHS Fox & Roach’s New Jersey market areas, properties under contract have decreased by 18.4 percent from 2,342 under contract in September 2021 to 1,910 in September 2022. Gloucester County had the biggest decrease compared to September 2021, of 26.1 percent, while Burlington County decreased 21 percent compared to September 2021.
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Main Line:

  • Home sales on the Main Line’s nine major municipalities/townships have decreased 35.8 percent, with 192 homes sold in September 2022, compared to 299 homes sold in September 2021.
  • Average sale price increased by 5.5 percent, from $675,464 in September 2021 to $712,924 in September 2022.
  • Properties under contract have decreased by 35 percent, with 186 in September 2022 and 286 in September 2021.
  • Monthly average inventory decreased by 28.5 percent, with 543 homes for sale in September 2022 and 759 homes for sale in September 2021.
  • Average days on market decreased by 17 percent, with 19 days on market in September 2022 and 23 days on market in September 2021.

Delaware:

  • Total properties sold in Kent and New Castle Counties are down by 27.6 percent, from 1,140 sold in September 2021 to 825 sold in September 2022. New Castle County had a 30.9 percent decrease in properties sold in September 2022, compared to September 2021 and Kent County decreased by 18.4 percent.
  • Average sale price in Delaware is up by 10.7 percent, from $306,827 in September 2021 to $339,803 in September 2022. New Castle County sale price increased 15 percent and Kent County increased 6.3 percent.
  • Average days on market in Delaware increased by 8.3 percent, from 18 days in September 2021 to 20 days in September 2022. The average days on market in Kent County increased 17.6 percent.
  • Monthly average inventory in Delaware decreased by 18 percent, from 1,279 homes for sale in September 2021 to 1,048 for sale in September 2022. In New Castle County, there were 20.9 percent less homes for sale, and in Kent County, there were 11.8 percent more homes for sale.
  • Properties under contract in Delaware decreased by 18.6 percent, from 1,013 properties under contract in September 2021 to 825 properties in September 2022.

Jersey Shore:

  • Atlantic County’s home sales decreased by 39.5 percent, with 376 homes sold in September 2022 and 622 homes sold in September 2021. Average prices of homes are up by 13 percent, from $463,895 in September 2021 to $522,350 in September 2022. Properties under contract decreased by 32.9 percent, from 557 under contract in September 2021 to 374 under contract in September 2022. Average days on market is down by 14.3 percent compared to September 2022. Monthly average inventory is down by 8.5 percent.
  • Cape May County home sales decreased 8.1 percent, with 271 homes sold in September 2022 and 295 sold in September 2021. The average price of properties sold decreased by 3 percent, from $810,344 in September 2021 to $789,115 in September 2022. The monthly average inventory is down by 2.4 percent and properties under contract are down by 32 percent, compared to September 2021.
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Lehigh Valley:

  • Home sales in the Lehigh Valley decreased by 15.9 percent, with 718 homes sold in September 2022 compared to 854 homes sold in September 2021.
  • Average sale price on homes is up by 9.1 percent, from $308,375 in September 2021 to $336,392 in September 2022.
  • Monthly average inventory is down by 27.5 percent, with 1,657 homes for sale in September 2022 compared to 2,285 homes for sale in September 2021.
  • Average days on market increased by 12.9 percent, from 16 days in September 2021 compared to 18 days in September 2022.
  • Properties under contract have decreased by 20.1 percent, with 612 properties under contract in September 2022 and 766 under contract in September 2021.

Note that 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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