Real Estate Market Awakens in Greater Philadelphia: Here’s What You Need to Know

Home buying© FatCamera / Getty Images Signature / Canva

DEVON, PA — As the spring real estate market commences, Berkshire Hathaway HomeServices Fox & Roach, REALTORS®/The Trident Group announced that it expects an increase in active listings and pending sales across the Greater Philadelphia area, as compared to the stalled winter market. With an increase in new listings and property showings, there are signs that the market will pick up momentum for home buyers and sellers. Although buyers face affordability issues with high interest rates and high sale prices, they also face less competition as homes are staying on the market longer.

Number of Properties Sold Decreased
The number of properties sold overall in February of 2023, in the 12-county greater Philadelphia region, decreased by 28 percent from this time last year, according to Fox & Roach’s February HomExpert Market Report©. There were 3,931 homes sold in February 2023, compared to 5,459 sold in February 2022.

  • In Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 28.9 percent, with 2,315 sold in February 2023, compared to February 2022’s 3,255 homes sold. In Chester County, home sales were down 34.4 percent. Delaware County had the second highest decrease, down 32.9 percent compared to February 2022. Philadelphia County had a 31.3 percent decrease compared to February 2022.
  • In Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 28.4 percent, with 1,081 sold in February 2023 and 1,510 sold in February 2022. Mercer County had the largest decrease, down 36.3 percent and Burlington County had the second largest decrease, down 29.9 percent compared to February 2022. Camden County had a 26.2 percent decrease.

Monthly Average Inventory Slightly Decreased
The number of homes for sale overall in the 12-county Greater Philadelphia region is down by only 0.1 percent, with 17,288 homes on the market in February 2023, compared to 17,312 for sale in February 2022.

  • In Fox & Roach’s Pennsylvania market areas, the average inventory is up by 3.6 percent, with 11,511 for sale in February 2023 and 11,112 for sale in February 2022. Philadelphia County increased 11.5 percent and Bucks County increased 4.2 percent. Meanwhile, Montgomery County decreased by 9.5 percent and Delaware County decreased 9.3 percent.
  • In Fox & Roach’s New Jersey market areas, the average inventory is down by 6 percent, with 4,109 sold in February 2023 and 4,369 sold in February 2022. Mercer County had the largest drop, down by 21.6 percent and Camden County had the second largest drop, down by 10.2 percent. Meanwhile, Gloucester County had an 11.1 percent increase compared to February 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 25.7 percent compared to February 2022, with 44 average days on market in February 2023 and 35 average days on market in February 2022.

  • In Fox & Roach’s Pennsylvania market areas, the average days on market increased 18.8 percent, with 39.2 days in 2023 and 33 average days on the market in February 2022. Bucks County’s average days on market increased 40 percent, while Philadelphia County’s average days on market increased 38 percent. Delaware County average days on market increased 9 percent.
  • In Fox & Roach’s New Jersey market areas, the average days on market increased 44.4 percent, from 38 average days on market in February 2022 to 55 average days on market in February 2023. Burlington County’s average days on market increased by 35.5 percent while Mercer County’s increased by 28.9 percent.

Average Sale Prices Increased
The average sale price in the 12-county greater Philadelphia region increased by 3.6 percent compared to February 2022, from $347,879 in February 2022 to $360,491 in February 2023.

  • In Fox & Roach’s Pennsylvania market areas, the average sale price was $414,109 in February 2023 compared to $405,627, showing a 2.1 percent increase. Montgomery County had the highest increase of 10.5 percent compared to February 2022. Delaware County had the second highest increase in average sale price by 4 percent and Chester County had a 2.5 percent increase.
  • In Fox & Roach’s New Jersey market areas, the average sale price was $321,591 in February 2023 compared to $294,581, showing a 9.2 percent increase from February 2022. Gloucester County had the highest increase in sale price of 10.6 percent. Mercer County had a 8.8 percent increase compared to February 2022 and Camden County increased 8.1 percent.

Properties Under Contract Decreased
The number of properties under contract overall in the 12-county greater Philadelphia region is down by 16.2 percent, with 5,596 homes under contract in February 2023, compared to 6,679 homes under contract in February 2022.

  • In Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 19.8 percent, from 3,296 under contract in February 2023 to 4,112 in February 2022. Montgomery County had the biggest decreases compared to February 2022, of 26.8 percent, while Philadelphia County decreased 21 percent compared to February 2022 and Delaware County decreased 19.7 percent.
  • In Fox & Roach’s New Jersey market areas, properties under contract have decreased by 5.1 percent from 1,740 under contract in February 2022 to 1,652 in February 2023. Mercer County had the biggest decrease compared to February 2022, of 19.2 percent, while Camden County decreased 11.6 percent compared to February 2022.

Main Line:

  • Home sales on the Main Line’s nine major municipalities/townships have decreased 28.5 percent, with 108 homes sold in February 2023, compared to 151 homes sold in February 2022.
  • Average sale price increased by 19.4 percent, from $702,993 in February 2022 to $839,359 in February 2023.
  • Properties under contract have decreased by 36.4 percent, with 154 in February 2023 and 242 in February 2022.
  • Monthly average inventory decreased by 14.1 percent, with 389 homes for sale in February 2023 and 453 homes for sale in February 2022.
  • Average days on market increased by 23 percent, with 38 days on market in February 2023 and 31 days on market in February 2022.

Delaware:

  • Total properties sold in Kent and New Castle Counties are down by 22.5 percent, from 684 sold in February 2022 to 530 sold in February 2023. New Castle County had a 19.8 percent decrease in properties sold in February 2023, compared to February 2022 and Kent County decreased by 28.5 percent.
  • Average sale price in Delaware is up by 9.1 percent, from $301,084 in February 2022 to $328,591 in February 2023. New Castle County sale price increased 6.7 percent and Kent County increased 11.7 percent.
  • Average days on market in Delaware increased by 56.9 percent, from 26 days in February 2022 to 40 days in February 2023. The average days on market in New Castle County increased 47.8percent.
  • Monthly average inventory in Delaware decreased by 8.2 percent, from 893 homes for sale in February 2022 to 820 for sale in February 2023. In New Castle County, there were 15.7 percent less homes for sale.
  • Properties under contract in Delaware decreased by 21.3 percent, from 812 properties under contract in February 2022 to 639 properties in February 2023.

Jersey Shore:

  • Atlantic County’s home sales decreased by 33.4 percent, with 235 homes sold in February 2023 and 353 homes sold in February 2022. Average prices of homes are up by 12 percent, from $445,738 in February 2022 to $499,295 in February 2023. Properties under contract decreased by 10.6 percent, from 415 under contract in February 2022 to 371 under contract in February 2023. Average days on market is down by 1.7 percent compared to February 2023. Monthly average inventory is up by 7.2 percent.
  • Cape May County home sales decreased 46.4 percent, with 192 homes sold in February 2023 and 103 sold in February 2022. The average price of properties sold increased by 8 percent, from $641,449 in February 2022 to $694,234 in February 2023. The monthly average inventory is up by 11.9 percent and properties under contract are down by 27.2 percent, compared to February 2022.

Lehigh Valley:

  • Home sales in the Lehigh Valley decreased by 15.4 percent, with 356 homes sold in February 2023 compared to 421 homes sold in February 2022.
  • Average sale price on homes is up by 9 percent, from $297,773 in February 2022 to $324,708 in February 2023.
  • Monthly average inventory is down by 21.6 percent, with 1,518 homes for sale in February 2023 compared to 1,190 homes for sale in February 2022.
  • Average days on market increased by 20.4 percent, from 25 days in February 2022 compared to 30 days in February 2023.
  • Properties under contract have increased by 3.5 percent, with 507 properties under contract in February 2023 and 490 under contract in February 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 the initial list date in the multiple listing service (MLS) until the property goes under contract.

For more information, visit www.foxroach.com.

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