DEVON, PA — “The real estate market in 2022 closed out with sales behind 2021 by approximately 17% in our area,” explains Berkshire Hathaway HomeServices Fox & Roach President Joan Docktor. “One factor is that interest rates rose in 2022 and peaked at 7% in October, causing an even steeper decline in sales in the last quarter of the year. Buyers took to the sidelines and would-be sellers decided to stay put,” Docktor adds. Greater Philadelphia home sales in 2022, in the 12-county Greater Philadelphia region, totaled 121,313, showing a 15.3 percent decrease from the 2021 year-end total of 143,290 homes sold, according to Berkshire Hathaway HomeServices (BHHS) Fox & Roach, REALTORS® HomExpert Market Report©.
“In 2023 we will see another year of declining sales, though not as steep as 2022. Home prices will flatten out and interest rates will slowly decline and stay in the 5% range as inflation declines. If you are ready to buy or sell, 2023 should be a good year,” says Docktor.
2022 Market Trends in 12-County Greater Philadelphia Region
Lack of Homes for Sale
Monthly average inventory was 41 homes in 2022, down 2.5 percent from 2021’s monthly average inventory of 40. The number of homes available for sale each month decreased in a majority of the 12 counties in 2022.
Average Sale Prices Increasing
The average price of homes has increased by 7.5 percent, from $379,256 in 2021 to $407,651 in 2022. Average sale prices have increased 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 28 days to 27 days, showing a 3.6 percent decrease. Days on the market have continued to decrease throughout 2022, with a majority of the 12-counties having experienced that trend.
2022 Year-End HomExpert Market Report© findings:
Pennsylvania Market Areas
- The total properties sold in our Pennsylvania market areas are down 14.9 percent, from 114,940 in 2021 to 97,775 in 2022.
- Average sale price increased by 5.7 percent, from $372,183 in 2021 to $393,437 in 2022.
- Average days on market decreased by 5.9 percent, from 34 days in 2021 to 32 days in 2022.
New Jersey Market Areas
- The total properties sold in our New Jersey market areas are down 17.2 percent, from 62,670 in 2021 to 51,893 in 2022.
- Average sale price increased by 9.6 percent, from $415,025 in 2021 to $454,958 in 2022.
- Average days on market decreased by 3.6 percent, from 28 days in 2021 to 27 days in 2022.
Delaware Market Areas
- Combined numbers for Kent and New Castle Counties showed total properties sold are down by 17.4 percent, from 11,743 in 2021 to 9,700 in 2022.
- Average sale price increased by 10.2 percent, from $311,386 in 2021 to $343,264 in 2022.
- Monthly average inventory increased by 7.1 percent, from 28 days in 2021 to 30 days in 2022.
Other 2022 Year-End HomExpert Market Report© findings:
Center City (PA)
- Center City home sales decreased by 12.5 percent, from 2,159 properties sold in 2021 to 1,890 in 2022. Included in this data is Old City, Washington Sq., Rittenhouse Sq, Fairmount/Art Museum and Northern Liberties/Fishtown.
- Average sale price in these areas was $605,642, up 3.6 percent from 2021’s $584,461.
- The average number of days a home remained on the market in Center City decreased by 13.9 percent, from 75 days in 2021 to 64 days in 2022.
Main Line (PA)
- Homes sales in the Main Line’s nine major municipalities/townships decreased 20.66 percent, from 3,582 homes sold in 2021 and 2,842 homes sold in 2022.
- Average home prices increased from $707,785 in 2021 to $757,869 in 2022, a 7.1 percent shift.
- The average number of days a home remained on the market decreased from 24 days in 2021 to 20 days in 2022, a 16.7 percent drop.
- Atlantic County sold 24.6 percent less houses in 2022, with 3,918 sold compared to 5,197 in 2021. Average home prices increased by 10.5 percent from $358,916 in 2021 to $396,589 in 2022. The average number of days a home remained on the market decreased by 12.8 percent, from 51 days in 2021 to 45 days in 2022.
- Cape May County homes sales decreased by 21.6 percent, from 3,262 total properties sold in 2021 to 2,557 sold in 2022. Average home prices increased by 13.1 percent from $537,868 in 2021 to $608,095 in 2022. The average number of days a home remained on the market decreased from 120 days in 2021 to 105 days in 2022, showing a 12.6 percent decrease.
- Home sales in the Lehigh Valley were down by 12.4 percent, with 7,779 poperties sold in 2022 compared to 8,880 sold in 2021.
- Average sale price on homes is up 13.5 percent, going from $291,261 in 2021 to $330,579 in 2022.
- Average days on the maraket are down by 13.6 percent, from 22 days in 2021 to 19 days on the market in 2022.
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