PHILADELPHIA - According to the Philadelphia Bureau of Real Estate, the Philadelphia Real Estate Market is expected to see a 9.1 percent increase in average sale prices between June 2023 and June 2022. The average sale price in Delaware County grew by 10.7 percent. Millennials and baby boomers are turning away from big houses in favor of renting. This may spur more home sales as rental opportunities increase.
Average Sale Price Increased By 9.1 Percent Compared To June 2021
The CPI measures the average change in prices paid by urban consumers. It tracks the prices of eight categories of goods and services, including housing, food and beverages, apparel, transportation, medical care, education, communication, and recreation. As a result, it has shown a modest increase in June compared to June 2021.
However, rising interest rates, high listing prices, and moderate demand are slowing down the rate of turnover. The share of newly listed homes declined slightly from last June, indicating a moderating trend in demand. Meanwhile, the share of larger homes on the market increased while the share of smaller homes decreased.
The average number of homes on the market in July was 14, similar to July 2021 and June. This number is among the lowest since the NAR started tracking the number of homes on the market in May 2011. In July 2022, eighty-two percent of homes were on the market for fewer than a month. Of these, 29% were sold by first-time buyers, while 24% were all-cash sales.
The total housing inventory was 1,310,000 units at the end of June, up by 4.8% from June and unchanged from the year before. This represents a 3.3-month supply at the current sales pace. In June, the median existing-home price in the U.S. was $403,800, up from the June 2021 median listing price of $416,000.6
The Average Sale Price Increased By 10.7 Percent Compared To June 2021
Home prices in the Greater Philadelphia region grew by 9.1 percent in June, the largest increase since June 2016. Delaware County saw the highest increase at 10.7 percent. Bucks County followed with an increase of 10 percent, and Chester County had an increase of 8.5 percent.
The average sale price rose in all regions except the West. Single-family home sales decreased 4.8% from May to June, but the Midwest and Northeast saw the highest gains at 16.8%, 10.2%, and 9.6%, respectively. Inventory levels increased by 9.6% from May to June. They are now 2.4% higher than the June 2021 median. It will take three months to clear the remaining unsold listings at the current pace.
The number of active listings rose in 46 of 51 counties in June. In May, 44 counties experienced year-over-year gains, with nine counties seeing triple-digit gains. Yolo and Solano led the way with gains of more than 12 percent. Merced, however, was down by a half percent.
While June is the most active month for home sales, July is the second-busiest month. Home sales averaged 305,000 per month in 2021, up from the first seven months of 2020. Listing volume has also increased, although it remains below pre-recession levels.
Delaware County Had The Highest Increase In Average Sale Price By 10.7 Percent
The average sale price in Delaware County increased by 10.7 percent between June 2018 and June 2019. The average price per square foot was $192, up 13.2% from last year. During the same period, the number of homes for sale in the county decreased by 0.5 percent. The average number of days a home spent on the market decreased by 6.3 percent.
The Philadelphia area continues to see high demand for homes. Demand for luxury condominiums, townhomes, and single family homes remained high. However, low inventory levels continue to restrict buyer activity. Inventory levels ranged from 1.1 months for mid-priced single-family homes to 3.1 months for luxury condominiums. The median price in May 2022 was $388,000, up 12.7% from last May.
Delaware County has experienced a significant change in its racial makeup since 2010. In 2010, there were 71.1% white non-Hispanics in the county. In 2021, the white non-Hispanic population comprised 64.3% of the county's population. However, between 2010 and 2021, the black non-Hispanic population grew by 3.1 percentage points to 22.5%.
As a result, the average sale price in Delaware County grew by 10.7 percent in 2023, the highest increase in over a decade. At the same time, the number of properties for sale declined by 16.7 percent from June 2021 to 2022. In other words, the median sale price is the mid-point between average prices. The average sale price of a home is calculated by averaging all home prices divided by the number of homes sold. One home with an extremely high price can skew the average price.