Philadelphia, PA
Housing Market
Philadelphia's housing market is dynamic, with home prices and demand constantly shifting. Houzeo's housing market report monitors these fluctuations, providing real-time insights into Philadelphia's supply and demand trends. Our report equips you with all the information you need to make well-informed decisions.
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Buy or SellPhiladelphia Housing Market Overview
The housing market in Philadelphia offers a blend of historic homes and modern apartments that fits a variety of budgets and lifestyles. The Philadelphia real estate market has shown steady growth in recent months. The median home sale price has increased by 3.4% year over year, reaching $250,000. Properties typically remain on the market for 67 days, a slight increase YoY. Over time, Philadelphia has experienced consistent property value appreciation, driven by its strong job market, expanding population, and vibrant cultural scene.
On the other hand, home sales have seen a slight decline. This month, 873 homes were sold, marking a 7.1% decrease from the same time last year. This points to a cooling market with less competition. However, Philadelphia's real estate market offers improved opportunities for buyers. The city is known for its rich history, diverse neighborhoods, and robust public transportation. No wonder Philadelphia continues to attract both local and out-of-state buyers. To take advantage of this demand, sellers can set realistic prices for their houses in Philadelphia, or offer concessions to speed up the sale.
On the other hand, home sales have seen a slight decline. This month, 873 homes were sold, marking a 7.1% decrease from the same time last year. This points to a cooling market with less competition. However, Philadelphia's real estate market offers improved opportunities for buyers. The city is known for its rich history, diverse neighborhoods, and robust public transportation. No wonder Philadelphia continues to attract both local and out-of-state buyers. To take advantage of this demand, sellers can set realistic prices for their houses in Philadelphia, or offer concessions to speed up the sale.
Median Sale Price
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Philadelphia Housing Supply
Philadelphia remains an attractive market for real estate investors due to its consistent demand and vibrant economy. Like the number of homes for sale in Pennsylvania, Philadelphia's inventory has also decreased slightly to 4,365, a 1.7% year-over-year decline. This total includes 1,628 new listings entering the market. The housing supply in Philadelphia currently stands at 5.1 months, which is a slight increase from the previous year. This points to a more or less balanced market.
Philadelphia's housing supply levels follow seasonal trends. During the spring and summer months, the market typically sees an increase in listings. Both sellers and buyers remain active, eager to close deals before the start of the school year. Philadelphia offers a unique lifestyle, with a mix of historic charm and urban conveniences, which continues to drive demand. Popular neighborhoods such as Center City, Fishtown, and University City offer a variety of housing options. Moreover, Philadelphia's strong infrastructure, excellent public transit, and access to major highways and airports enhance its appeal.
Philadelphia's housing supply levels follow seasonal trends. During the spring and summer months, the market typically sees an increase in listings. Both sellers and buyers remain active, eager to close deals before the start of the school year. Philadelphia offers a unique lifestyle, with a mix of historic charm and urban conveniences, which continues to drive demand. Popular neighborhoods such as Center City, Fishtown, and University City offer a variety of housing options. Moreover, Philadelphia's strong infrastructure, excellent public transit, and access to major highways and airports enhance its appeal.
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Philadelphia Housing Demand
Philadelphia houses for sale have faced some competition recently. 20.8% of homes sell above their list price, a strong indicator of ongoing demand. On the other hand, 25% of homes have experienced price reductions, which suggests that some sellers are adjusting their expectations. Moreover, the sale-to-list price ratio has reached 97%. This means that sellers receive close to their asking price, but buyers have increased room for negotiation.
As a home seller, pricing your house accurately from the start can help you avoid price reductions. You could also offer concessions to buyers instead of lowering your asking price. With a sale-to-list price ratio less than 100%, sellers may receive close to their asking price, but buyers are likely to negotiate for slightly lower offers. If you're a buyer, focus on homes that have been on the market for a longer period of time for more leverage.
As a home seller, pricing your house accurately from the start can help you avoid price reductions. You could also offer concessions to buyers instead of lowering your asking price. With a sale-to-list price ratio less than 100%, sellers may receive close to their asking price, but buyers are likely to negotiate for slightly lower offers. If you're a buyer, focus on homes that have been on the market for a longer period of time for more leverage.
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Strong
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Balanced
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Strong
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Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Philadelphia Housing Market: When to Buy or Sell?
Philadelphia's housing market has fluctuated between buyer-friendly and seller-friendly conditions over time. Like the broader Pennsylvania real estate market, the Philadelphia housing market can favor both buyers and sellers based on seasonal trends. When competition is low and inventory increases, buyers gain more leverage in negotiations. On the other hand, sellers can benefit from higher prices and quicker sales when demand surpasses supply.
Moreover, if the months of Philadelphia's housing supply rise above the balanced conditions of the US real estate market (5 to 6 months), it may provide buyers with more time to weigh their options. Understanding these market dynamics can help you strategically time your purchase or sale.
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Frequently Asked Questions
How have Philadelphia house prices changed over the past year?
Over the past year, the median home price in Philadelphia, PA, has experienced steady growth, rising to $250,000. Demand remains strong; sellers are having to adjust their pricing strategies in order to attract buyers in this competitive market. Consider using our free home value estimator to assess your property's current market value and compare it with nearby sales.
What are Philadelphia real estate market predictions for 2025?
Home prices in Philadelphia are expected to see modest growth in 2025. There is stability and ongoing demand across the Pennsylvania housing market, but affordability may be a challenge as prices continue to rise. Buyers can find opportunities for better deals if the supply increases and mortgage rates stabilize.
What's the average home price in Philadelphia, PA?
The average house price in Philadelphia varies based on the property type. Single-family homes average $450,000, while condos typically cost around $321,500. Whether you're looking for a luxury condo or a townhome, Philadelphia offers a variety of options to suit different budgets.
Is this a good time to buy a home in Philadelphia, PA?
To determine if now is a good time to buy, assess Philadelphia's housing market trends regarding home prices and inventory. Sellers benefit from high demand, but with stable mortgage rates and an increase in supply, buyers may find it easier to negotiate better deals. If you're considering investing, now could be a great opportunity.
How is the housing market right now in Philadelphia?
The housing market in Philadelphia is stable with moderate demand. Although there is some competition, homes stay on the market a bit longer than in previous years. Limited supply has led to steady price appreciation in desirable neighborhoods.
When will the Philadelphia housing market crash?
According to housing market forecasts, a crash in Philadelphia is highly unlikely. While growth may slow slightly, the market will continue to appreciate steadily through 2025. Buyers and sellers alike can expect a relatively stable market moving forward.
How to buy a house in Philadelphia?
First, define your budget and secure mortgage pre-approval. Afterward, you can begin searching for houses for sale in Philadelphia, PA, submit offers, secure financing, and close the deal.
How can I list my home for sale in Philadelphia, PA?
You can list your Philadelphia home for sale with a Flat Fee MLS Pennsylvania listing service. High-tech MLS listing platforms like Houzeo automatically assign the necessary paperwork based on your location, saving you money on traditional agent commissions.
What is the average mortgage rate for buyers in Philadelphia?
The average mortgage rate for buyers in Philadelphia fluctuates between 6.8% and 7%. Rates vary depending on the market and the borrower's credit score. Always check with lenders for the most current rates before you commit to a mortgage.
What is the average cost of living in Philadelphia, Pennsylvania?
Philadelphia's cost of living is 3% higher than the national average. While housing in Philadelphia is 1% lower than the US median, utility costs are about 5% higher. The typical single-family home in Philadelphia costs $450,000, with regional price variations. Other essentials like food, transportation, and healthcare are in line with national averages, which makes Philadelphia a relatively affordable option for those looking to settle in a large urban center.
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