Based on the latest data from Movoto Real Estate, it remains a buyer’s market in Philadelphia with decreasing mortgage rates, consistent inventory, and prices per square foot staying steady. For those looking to make an investment in residential real estate in The City of Brotherly Love, now is a great time to start your search.
Compared to a year ago, there has not been a significant shift in the median number of days homes are staying on the market, nor the median list price or cost per square foot. Read on to see the breakdown of these various factors and how today Philadelphia market compares to the April 2012 market is.
Minor Drops in Inventory
Currently, there are 6,717 properties active in Philadelphia. This is a 3 percent increase from last month, when there was 6,547 properties active. However, compared to a year ago, when there were 17,745 properties available, the current inventory represents a 13 percent decrease. This slight decrease is worth noting since this means supply is decreasing and there may to be more competition for the properties that are on the market.
Sales are Picking Up a Little
Currently, the median number of days a property is on the market is about 75, which is 15 percent lower than last month, when the median number of days was 88. Compared to a year ago, the median number of days was 85, thus we have a 12 percent decrease in the median number of days a property is on the market. With the median number of days on the market hovering around 2.5 months, we are not feeling like this is a seller’s market right now.
Price Per Square Foot and List Prices are Steady
The median price per square foot in Philadelphia is currently $111 per square foot, which is up 6 percent from last month. Compared to last year, when we saw prices at $112 per square foot, there is not any significant change.
Similarly, we are seeing median list prices are staying fairly steady. Currently, the median list price is $140,000. This is a 4 percent increase from last month and a 3 percent decrease from last year, where the median list price was at $144,990. The Fels Institute of Government at University of Pennsylvania characterized the situation with Philadelphia’s housing economy as mixed. Housing prices are recovering in more affluent neighborhoods but slumping in others.
Pennsylvania Mortgage Rates
Current mortgage rates in Pennsylvania are around 3.32 percent, which is a little lower than the national average of 3.34 percent. Compared to a year ago, where rates for a 30-year fixed were in the 4.1 percent range in Pennsylvania, mortgage rates are down. This is a benefit for buyers.
The Wrap Up
We love numbers as a way to help inform decision making. Based upon our review of the current statistics for Philadelphia, things are holding pretty steady in Philadelphia and the city is not realizing the real estate market rebound that is going on in other cities in the nation. If you are looking to purchase a home in Philadelphia, this is a good time to be looking at the listings. Since property prices are staying fairly steady, you don’t need to rush into any purchase decision, but now is the right time for a buyer to become more engaged in the market.
