DEVON, PA — According to a HomExpert Report by Berkshire Hathaway HomeServices Fox & Roach, REALTORS®/The Trident Group, the Greater Philadelphia area has experienced a seasonal uptick in market activity. Despite this, there has been a year-on-year drop in sales, which could be attributed to the low inventory of homes for sale in the housing market. The low supply of available homes for sale has led to rising sales prices, but things could change in the near future.
There are signs of competition in the market, and April could usher in a wave of change. However, high interest rates and inflation have led to a decrease in the buyer’s interest, positively impacting the sellers. As homes stay longer on the market, sellers can now expect higher than average sales prices and ample time to enter the market themselves. With this sudden shift in the housing market, both buyers and sellers should stay alert for future developments.
Number of Properties Sold Decreased
The number of properties sold overall in March of 2023, in the 12-county greater Philadelphia region, decreased by 24.6 percent from this time last year, according to Fox & Roach’s March HomExpert Market Report©. There were 5,478 homes sold in March 2023, compared to 7,262 sold in March 2022.
- In Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 26.3 percent, with 3,281 sold in March 2023, compared to March 2022’s 4,454 homes sold. In Philadelphia County, home sales were down 30.5 percent. Delaware County had the second highest decrease, down 28.6 percent compared to March 2022. Montgomery County had a 27.1 percent decrease compared to March 2022.
- In Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 19 percent, with 1,548 sold in March 2023 and 1,910 sold in March 2022. Mercer County had the largest decrease, down 31.3 percent and Camden County had the second largest decrease, down 21.3 percent compared to March 2022. Gloucester County had a 17.8 percent decrease.
Monthly Average Inventory Decreased
The number of homes for sale overall in the 12-county Greater Philadelphia region is down by 5.1 percent, with 18,870 homes on the market in March 2023, compared to 19,894 for sale in March 2022.
- In Fox & Roach’s Pennsylvania market areas, the average inventory is down by 0.7 percent, with 12,723 for sale in March 2023 and 12,813 for sale in March 2022. Montgomery County decreased 11.7 percent and Delaware County decreased 9.3 percent. Meanwhile, Chester County decreased by 8.1 percent and Bucks County decreased 7.4 percent.
- In Fox & Roach’s New Jersey market areas, the average inventory is down by 14.7 percent, with 4,304 sold in March 2023 and 5,045 sold in March 2022. Mercer County had the largest drop, down by 20.2 percent and Camden County had the second largest drop, down by 16.3 percent. Meanwhile, Burlington County had a 9.5 percent increase compared to March 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 25.8 percent compared to March 2022, with 39 average days on market in March 2023 and 31 average days on market in March 2022.
- In Fox & Roach’s Pennsylvania market areas, the average days on market increased 20.1 percent, with 34.6 days in 2023 and 28.8 average days on the market in March 2022. Bucks County’s average days on market increased 36 percent, while Montgomery County’s average days on market increased 35 percent. Philadelphia County average days on market increased 31 percent.
- In Fox & Roach’s New Jersey market areas, the average days on market increased 65 percent, from 32 average days on market in March 2022 to 53 average days on market in March 2023. Gloucester County’s average days on market increased by 32 percent while Burlington County’s increased by 26.7 percent.
Average Sale Prices Increased
The average sale price in the 12-county greater Philadelphia region increased by 8 percent compared to March 2022, from $362,206 in March 2022 to $391,267 in March 2023.
- In Fox & Roach’s Pennsylvania market areas, the average sale price was $464,645 in March 2023 compared to $426,645, showing a 8.8 percent increase. Chester County had the highest increase of 19.7 percent compared to March 2022. Delaware County had the second highest increase in average sale price by 11.5 percent and Bucks County had a 5.6 percent increase.
- In Fox & Roach’s New Jersey market areas, the average sale price was $326,027 in March 2023 compared to $289,916, showing a 12.5 percent increase from March 2022. Mercer County had the highest increase in sale price of 20 percent. Gloucester County had a 10.6 percent increase compared to March 2022 and Burlington County increased 8.3 percent.
Properties Under Contract Decreased
The number of properties under contract overall in the 12-county greater Philadelphia region is down by 20.7 percent, with 6,749 homes under contract in March 2023, compared to 8,514 homes under contract in March 2022.
- In Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 22.5 percent, from 4,051 under contract in March 2023 to 5,228 in March 2022. Montgomery County had the biggest decreases compared to March 2022, of 29.4 percent, while Chester County decreased 27 percent compared to March 2022 and Bucks County decreased 23.6 percent.
- In Fox & Roach’s New Jersey market areas, properties under contract have decreased by 15 percent from 2,283 under contract in March 2022 to 1,941 in March 2023. Mercer County had the biggest decrease compared to March 2022, of 20.4 percent, while Camden County decreased 14.8 percent compared to March 2022.
Main Line:
- Home sales on the Main Line’s nine major municipalities/townships have decreased 32.1 percent, with 169 homes sold in March 2023, compared to 249 homes sold in March 2022.
- Average sale price increased by 36.8 percent, from $678,184 in March 2022 to $927,453 in March 2023.
- Properties under contract have decreased by 27.2 percent, with 209 in March 2023 and 287 in March 2022.
- Monthly average inventory decreased by 9.5 percent, with 465 homes for sale in March 2023 and 514 homes for sale in March 2022.
- Average days on market increased by 7 percent, with 25 days on market in March 2023 and 27 days on market in March 2022.
Delaware:
- Total properties sold in Kent and New Castle Counties are down by 27.1 percent, from 877 sold in March 2022 to 639 sold in March 2023. New Castle County had a 29.2 percent decrease in properties sold in March 2023, compared to March 2022 and Kent County decreased by 22.9 percent.
- Average sale price in Delaware is up by 7.7 percent, from $305,160 in March 2022 to $328,523 in March 2023. New Castle County sale price increased 8.1 percent and Kent County increased 7.2 percent.
- Average days on market in Delaware increased by 39.1 percent, from 23 days in March 2022 to 32 days in March 2023. The average days on market in New Castle County increased 23.8 percent.
- Monthly average inventory in Delaware decreased by 7.9 percent, from 990 homes for sale in March 2022 to 912 for sale in March 2023. In New Castle County, there were 15.9 percent less homes for sale.
- Properties under contract in Delaware decreased by 23.3 percent, from 980 properties under contract in March 2022 to 752 properties in March 2023.
Jersey Shore:
- Atlantic County’s home sales decreased by 36.1 percent, with 311 homes sold in March 2023 and 487 homes sold in March 2022. Properties under contract decreased by 20 percent, from 561 under contract in March 2022 to 449 under contract in March 2023. Average days on market is up by 2 percent compared to March 2023. Monthly average inventory is up by 3.6 percent.
- Cape May County home sales decreased 31.4 percent, with 192 homes sold in March 2023 and 280 sold in March 2022. The average price of properties sold increased by 4 percent, from $720,448 in March 2022 to $751,462 in March 2023. The monthly average inventory is up by 16.4 percent and properties under contract are down by 7.6 percent, compared to March 2022.
Lehigh Valley:
- Home sales in the Lehigh Valley decreased by 16.1 percent, with 490 homes sold in March 2023 compared to 584 homes sold in March 2022.
- Average sale price on homes is up by 10.8 percent, from $320,457 in March 2022 to $354,937 in March 2023.
- Monthly average inventory is down by 27.7 percent, with 1,255 homes for sale in March 2023 compared to 1,736 homes for sale in March 2022.
- Average days on market increased by 38.9 percent, from 18 days in March 2022 compared to 25 days in March 2023.
- Properties under contract have decreased by 21.1 percent, with 538 properties under contract in March 2023 and 682 under contract in March 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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