Drexel University’s Lindy Institute for Urban Innovation released its 2021 Q3 report on the city’s housing numbers. Here is a summary of the report:
- Philadelphia’s house prices continue to show strong appreciation, but at a decreasing rate. Philadelphia’s median house price is 8.8% higher than one year ago. While this is well above Philadelphia’s average house price appreciation rate of 4-5% per year, it is a definite pullback from the 14.5% YoY increase that occurred in the previous quarter of this year.
- Sales activity remains high, but definitely appears to be decreasing. Total sales volume remains above its historic average of approximately 4,000 transactions per quarter, but has been trending down for the past two years. The most recent numbers indicate a continuation of this trend. Closed sales are down 4.9% from a year ago, and pending sales are down 2.2% from a year ago. Also, both metrics are down from this past summer, although this is a standard seasonal phenomenon (house prices and sales always decrease as the calendar year transitions from the summer to fall).
- Other market metrics indicate some softening of the market. From one year ago, listings of homes for sale are down 6.3%, median days-on-market are up 1% and showings are down a whopping 23.1%. But, homes are still selling very quickly, with a median days-on-market of only 15.
- There is some significant segmentation of the market. Demand is currently highest for higher priced single-family homes, and weakest for lower-priced single family homes. Demand for condos—especially in Center City—also remains soft. These are trends that have persisted since COVID.
You can read the full report here.
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