Philadelphia Market Update, August 2022

[Yuriy Skripnichenko]

Hi all, 

New report from Bright. 

Home Demand Index
Compared with the springtime peak in April, the Index was 13 percent lower with most of the decrease occurring in July. The effects of deteriorating affordability, amplified by the rise in mortgage rates since the beginning of the year, likely sidelined some buyers. Overall, buyer interest has been lower so far this year than last year.
In the Philadelphia Metro area, demand was strongest in Bucks, Delaware and Montgomery counties, each with an Index in the High category. Demand was Steady or Slow across the suburban New Jersey counties and Philadelphia County and Moderate elsewhere in the metro area. Buyer interest remained in the High range in the Salem-Cumberland market area and at a Steady level in Central Pennsylvania. Across the Greater Philadelphia area, the Index in 31 percent of ZIP codes was in the High range compared with 39 percent in June.
Demand for all types of homes fell in July. The largest decrease in the Index was in the higher-priced condo segment, down 17 percent over the month. Compared with one year earlier, demand was lower for all types of homes except higher-priced single-family homes, which was 16 percent higher. Buyer interest was strongest for higher-priced single-family homes, which remained in the High demand category in July. Although declining over the month, demand for townhouses remained in the Moderate range. The months supply rose for each type of home in July. The inventory of homes ranged from a 1.4 months supply for mid-priced single-family homes to a 4.8 months supply for higher-priced condos.

Cheers, 

Yuriy