Crisp autumn air, cool temperatures, leaf covered sidewalks, football, cheesesteaks: it’s fall in Philadelphia! We hope you’re enjoying the beautiful weather, and making the most out of the fall season.
Philadelphia’s housing market has remained busy, but we’ve seen it start to settle down after the above average period of growth ween last year and early this year.
At 3,974 units, Inventory is up from an all time low in March, but still much lower than the historic average of around 6000 units.The average price of Philadelphia homes rose modestly, increasing by 2.1% in Q3, but overall prices are decelerating after several years of above-average growth. Despite recent cooling in home prices, sales are up 14.6% of Q3 2017 -- this is the second-highest volume of quarterly home sales since the current market began its post-recession expansion in 2012.
Looking at the Center City Philadelphia specifically, the average days on market has decreased from 46 days in 3rd Quarter 2017 to 44 days in 3rd Quarter 2018. Inventory has remained at nearly the same level, increase from 3,369 units to 3,377 units. The average sold price has increased from $347,847 to $350,880.
House price changes in individual submarkets were mostly positive but also relatively modest. Center City/Fairmount (-1.3%), South Philadelphia (+0.6%), Northwest Philadelphia (+0.7%), West Philadelphia (+2.4%), Lower Northeast Philadelphia (+2.5%), Upper Northeast Philadelphia (+2.6%), Kensington/Frankford (+3.4%), North Philadelphia (+3.7%) and University City (+6.2%).
How does the future look? The market still solid, but is settling down after a period of rapid growth. It is still a great time to sell or buy. Interest rates have been on the rise since summer, but are still historically low; and although inventory is low, sales have remained high. To be successful, sellers should take steps to ensure their property is immaculate, priced right, and cutting edge marketing is implemented.
We hope you found this overview informative. Please feel free to reach out if you would like more details on the Philadelphia Real Estate Market, or if you or anyone you know is thinking of buying or selling in the near future.
*Information for this report sourced from Lindy Institute of Urban Innovation at Drexel University http://drexel.edu/lindyinstitute/