Philadelphia, Pennsylvania, is a bustling urban area with a great quality of life. With extensive opportunities for education and successful careers, this could be a great place to settle down, per Select Greater Philadelphia.
However, those searching for their dream home in this city may be disappointed. Just like the rest of the United States, which according to US News, has 22% fewer listings from 2021, this city has seen a decline in inventory. Therefore, those looking to buy a home in Philadelphia may struggle to find a property that checks all their boxes. Ultimately, this could lead them to have to settle. Alternatively, for sellers, this competitive market may be a cause for celebration.
Below, you’ll find more details about Philadelphia’s declining listings and what exactly this means for both buyers and sellers. Additionally, you’ll discover that there may actually be some hope for those looking for a home in this city.
What the decline means for buyers and sellers
When studying the month of June over the past five years, 2018 and 2019 had pretty stable numbers (10,064 and 10,014, respectively). In 2020, the market took a major dip because of COVID-19, and new listings dropped to 7,027. Luckily, 2021 saw a rise that almost rivaled those earlier years, with 9,766 new listings. This year, however, the market has seen another drastic decrease, with only 8,249 new real estate listings.
For those selling their homes in Philadelphia, this is great news. Low inventory means more competition and a rise in prices. Therefore, you could get a large sum of money for your home, which will probably far exceed what you bought it for. Additionally, homes are selling fast — they typically sit on the market for 60 to 70 days, but now they are only on the market for about a week, per Norada Real Estate.
Those searching for a home in Philadelphia may have some challenges since the market is so competitive. However, there is some good news. When compared to the rest of the U.S., Philadelphia has historically low house prices, with the average being $325,000. While this is over 10% higher than it was last year, it’s still 38% cheaper than New York City and 32% cheaper than Boston, per Select Greater Philadelphia. Therefore, those moving to Philadelphia from another major city may be satisfied with the house prices.