Philadelphia Market Update, January 2023

[Yuriy Skripnichenko]

Hi all, 

New report from Bright. 

Philadelphia | January 2023
Housing market activity slowed to its lowest level in eight years in the Philadelphia metro area. In December, there was a total of 3,909 new pending sales in the region, which was down 32.6% compared to a year ago, nearly 2,000 fewer new contracts. Rising mortgage rates have led to significant pullbacks in buyer activity. Many buyers who have paused their home search during the winter holidays may resume looking in 2023. Inventory in the region is still fairly limited. While the number of active listings increased by 23.6% year-over-year, supply fell by 15.7% compared to October. Furthermore, inventory is still less than half of what it was three years ago. New listing activity continues to be low. In December, a total of 3,922 new listings came onto the market in the Philadelphia metro area, the lowest number of monthly new listings in more than two decades.
Home Demand Index

Demand for homes in the Philadelphia Metro area was Limited in December according to the Bright MLS | T3 Home Demand Index. The Index fell 25 percent over the month and was 17.4 percent lower than one year earlier.
Demand for each type of home fell in December. The largest decreases were in the single-family and townhouse segments, each falling more than 20 percent over the month. Buyer interest was strongest for higher-priced single-family homes and higher-priced condos although demand was in the Slow category. Demand in all other segments was Limited. The months supply of higher-priced condos rose in December but fell among all other segments. The months supply ranged from 1.6 months for mid-priced single-family homes to 9.3 months for higher-priced condos.

Cheers, 

Yuriy