Local Housing Market: Low Inventory & High Demand Drive Up Prices

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DEVON, PA —  According to the Berkshire Hathaway HomeServices Fox & Roach, REALTORS® HomExpert Report, the number of closed homes sales in the Greater Philadelphia area has decreased in all 12 counties, as compared to May 2022. With the persisting low inventory of homes for sale, property prices have continued to increase. “With buyers and sellers hesitant to enter the market, we are seeing little movement. However, it is an opportune time for sellers to list, as they can expect elevated buyer demand and top purchase prices for their homes. Since homes are starting to remain on the market longer than recent months, we also encourage buyers to enter the market now while they are facing less competition,” comments Fox & Roach, REALTORS® CEO, Larry Flick V.

Number of Properties Sold Decreased

The number of properties sold overall in May of 2023, in the 12-county greater Philadelphia region, decreased by 22.3 percent from this time last year, according to Fox & Roach’s May HomExpert Market Report©. There were 6,229 homes sold in May 2023, compared to 8,018 sold in May 2022.

  • In Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 20.2 percent, with 3,949 sold in May 2023, compared to May 2022’s 4,950 homes sold. In Montgomery County, home sales were down 26.2 percent. Philadelphia County had the second highest decrease, down 19.5 percent compared to May 2022. Chester County had a 18.8 percent decrease compared to May 2022.
  • In Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 27.4 percent, with 1,537 sold in May 2023 and 2,116 sold in May 2022. Camden County had the largest decrease, down 34.1 percent and Burlington County had the second largest decrease, down 30.5 percent compared to May 2022. Mercer County had a 24.9 percent decrease.

Monthly Average Inventory Decreased

The number of homes for sale overall in the 12-county Greater Philadelphia region is down by 12.8 percent, with 19,312 homes on the market in May 2023, compared to 22,143 for sale in May 2022.

  • In Fox & Roach’s Pennsylvania market areas, the average inventory is down by 7.8 percent, with 13,190 for sale in May 2023 and 14,312 for sale in May 2022. Montgomery County decreased 20.2 percent and Bucks County decreased 17.2 percent. Meanwhile, Delaware County decreased by 12.6 percent and Chester County decreased 5.7 percent.
  • In Fox & Roach’s New Jersey market areas, the average inventory is down by 24 percent, with 4,281 sold in May 2023 and 5,630 sold in May 2022. Mercer County had the largest drop, down by 31.5 percent and Salem County had the second largest drop, down by 26.5 percent. Meanwhile, Burlington County had a 24.1 percent increase compared to May 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 42.9 percent compared to May 2022, with 30 average days on market in May 2023 and 21 average days on market in May 2022.

  • In Fox & Roach’s Pennsylvania market areas, the average days on market increased 39.1 percent, with 25.6 days in 2023 and 18.4 average days on the market in May 2022. Philadelphia County’s average days on market increased 59 percent, while Bucks County’s average days on market increased 57 percent. Chester County average days on market increased 36 percent.
  • In Fox & Roach’s New Jersey market areas, the average days on market increased 41.7 percent, from 30 average days on market in May 2022 to 43 average days on market in May 2023. Burlington County’s average days on market increased by 45 percent while Camden County’s increased by 35 percent.

Average Sale Prices Increased

The average sale price in the 12-county greater Philadelphia region increased by 2 percent compared to May 2022, from $399,553 in May 2022 to $407,346 in May 2023.

  • In Fox & Roach’s Pennsylvania market areas, the average sale price was $464,071 in May 2023 compared to $454,012, showing a 2.2 percent increase. Delaware County had the highest increase of 10.6 percent compared to May 2022. Chester County had the second highest increase in average sale price by 6.6 percent.
  • In Fox & Roach’s New Jersey market areas, the average sale price was $356,909 in May 2023 compared to $341,708, showing a 4.4 percent increase from May 2022. Mercer County had the highest increase in sale price of 15.9 percent. Gloucester County had a 7.4 percent increase compared to May 2022.

Properties Under Contract Decreased

The number of properties under contract overall in the 12-county greater Philadelphia region is down by 16.1 percent, with 7,171 homes under contract in May 2023, compared to 8,542 homes under contract in May 2022.

  • In Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 16.5 percent, from 8,542 under contract in May 2022 to 7,171 in May 2023. Montgomery County had the biggest decreases compared to May 2022, of 27.9 percent, while Bucks County decreased 21.8 percent compared to May 2022 and Delaware County decreased 17.9 percent.
  • In Fox & Roach’s New Jersey market areas, properties under contract have decreased by 14.7 percent from 2,294 under contract in May 2022 to 1,956 in May 2023. Burlington County had the biggest decrease compared to May 2022, of 20.1 percent, while Mercer County decreased 14 percent compared to May 2022.
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Main Line:

  • Home sales on the Main Line’s nine major municipalities/townships have decreased 31.9 percent, with 201 homes sold in May 2023, compared to 295 homes sold in May 2022.
  • Average sale price increased by 5.6 percent, from $762,896 in May 2022 to $805,584 in May 2023.
  • Properties under contract have decreased by 15.9 percent, with 281 in May 2023 and 334 in May 2022.
  • Monthly average inventory decreased by 9.9 percent, with 555 homes for sale in May 2023 and 616 homes for sale in May 2022.
  • Average days on market changed by 0 percent, with 19 days on market in May 2023 and 19 days on market in May 2022.

Delaware:

  • Total properties sold in Kent and New Castle Counties are down by 23 percent, from 925 sold in May 2022 to 712 sold in May 2023. New Castle County had a 26.5 percent decrease in properties sold in May 2023, compared to May 2022 and Kent County decreased by 14.2 percent.
  • Average sale price in Delaware is up by 5 percent, from $330,179 in May 2022 to $346,575 in May 2023. New Castle County sale price increased 1.7 percent.
  • Average days on market in Delaware increased by 56.3 percent, from 16 days in May 2022 to 25 days in May 2023. The average days on market in Kent County increased 70 percent.
  • Monthly average inventory in Delaware decreased by 15.9 percent, from 1,074 homes for sale in May 2022 to 903 for sale in May 2023. In New Castle County, there were 19.8 percent less homes for sale.
  • Properties under contract in Delaware decreased by 16.3 percent, from 968 properties under contract in May 2022 to 810 properties in May 2023.

Jersey Shore:

  • Atlantic County’s home sales decreased by 26.9 percent, with 359 homes sold in May 2023 and 491 homes sold in May 2022. The average price of properties sold increased by 22 percent, from $527,950 in May 2022 to $644,013 in May 2023. Properties under contract decreased by 7.2 percent, from 431 under contract in May 2022 to 400 under contract in May 2023. Average days on market is up by 7.3 percent compared to May 2023. Monthly average inventory is down by 1.3 percent.
  • Cape May County home sales decreased 20.2 percent, with 221 homes sold in May 2023 and 277 sold in May 2022. The average price of properties sold increased by 15 percent, from $829,333 in May 2022 to $957,811 in May 2023. The monthly average inventory is down by 2.7 percent and properties under contract are down by 12.2 percent, compared to May 2022.
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Lehigh Valley:

  • Home sales in the Lehigh Valley decreased by 22.2 percent, with 514 homes sold in May 2023 compared to 661 homes sold in May 2022.
  • Average sale price on homes is up by 6.3 percent, from $337,811 in May 2022 to $358,962 in May 2023.
  • Monthly average inventory is down by 34.3 percent, with 1,366 homes for sale in May 2023 compared to 2,079 homes for sale in May 2022.
  • Average days on market increased by 46.9 percent, from 16 days in May 2022 compared to 24 days in May 2023.
  • Properties under contract have decreased by 18.4 percent, with 797 properties under contract in May 2023 and 650 under contract in May 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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