Philadelphia, PA, is a city rich in history and cultural significance and is always experiencing notable changes in its housing market. That’s why the Mike McCann Team, our team of renowned PA realtors with extensive knowledge of Pennsylvania real estate, is here to offer a comprehensive overview of the current trends we are seeing.
With our expertise, potential buyers and investors of Pennsylvania real estate can better understand what makes Philadelphia a unique and promising place to live and invest. Whether you are considering buying or selling, our round-up of the current Philadelphia housing market provides everyone with the information needed to be informed buyers and sellers.
Read more about what Philadelphia has to offer!Philly’s House Inventory is Low but Looks Promising
Typically, housing markets see significant spikes in inventory in the spring as many homebuyers want to be settled in their homes before the start of the school year. Although not as dramatic as in previous years, September did bring 1,500 new listings to the table for buyers to consider, bringing the total listings to 5,193. Even though the market has seen an uptick in homes for sale, the inventory is still considered low for Philadelphia compared to years prior.
Is it a Buyer’s or Seller’s Market?
A buyer’s market is marked by having more houses on the market than there are buyers which can provide some leverage to buyers. Conversely, a seller’s market is marked by available housing inventory not meeting buyer demand, squarely landing leverage into the seller’s camp. Why is this an important distinction to go over? Because the Philadelphia housing market is highly nuanced. What may seem like a seller’s market or a buyer’s market from a high level, can drastically change from neighborhood to neighborhood.
Using the MSI as an Example of Nuanced Markets
One metric used in the real estate market to track supply vs. demand is the month’s supply of inventory (MSI). This number reflects how many months it would take to sell all current properties on the market at the current sales price.
- If the MSI is below 5 it indicates a seller’s market
- If the MSI is above 7 it indicates a buyer’s market
The MSI numbers for the city of Philadelphia are approximately 4.8, which lands the housing market almost directly in the middle which is a neutral market. However, zeroing in on a specific zip code within Philadelphia could land the MSI in the 20s, making it a buyer’s market, whereas a mere mile away in a different zip code the MSI is 2.0 making that submarket a seller’s market.
Familiarizing yourself with the overall health of the Philadelphia real estate market is not the only important thing to do; it is also important to zero in on the submarkets you are potentially interested in buying or selling in.
On a national level mortgage rates have dropped, which gives home buyers more of an inventory to choose from, tipping the scales to more of a buyer’s market.
What is the Average Philadelphia Home Value?
The average home value in Philadelphia is up 2.3% from last year and is $221,590. However, as we mentioned previously, it is important to also look at the subdivisions within Philadelphia as well.
Current home values in popular Philadelphia neighborhoods:
- Fishtown: $345,999 up 1.8% from last year.
- Center City: $297,999 down 1.6% from last year.
- Roxborough: $347,287 up 4% from last year.
Neighborhood Insights
Philadelphia boasts a tapestry of diverse neighborhoods, each with its own distinct appeal. Understanding these neighborhood dynamics is key for anyone considering a move to Philadelphia, PA. The Mike McCann Team shines a spotlight on areas like Northern Liberties and Graduate Hospital, which are undergoing significant development and attracting young professionals and families. These neighborhoods blend urban convenience with a strong community feel, making them particularly desirable for potential homebuyers.
In addition to these, Fishtown continues to draw interest with its vibrant arts scene and trendy eateries. Meanwhile, historic Old City remains a favorite for those drawn to its rich architectural heritage and cobblestone streets. Understanding these neighborhood dynamics is key for anyone considering a move to Philadelphia, PA.
The McCann Team is here to Successfully Lead You to Your Next Home
We all know that the housing market is always changing. Therefore, ensuring you have the right team behind you who are up on market trends during the home buying and selling process is paramount. Let The McCann team be your advocate and leader in searching for a Philadelphia home built just for you and your family.
Learn more about the Mike McCann Team!
