Jul 20, 2022 - Real Estate

Philly's real estate market isn't cooling just yet

Illustration of a white picket fence shaped like arrows trending upwards

Illustration: Sarah Grillo/Axios

With new listings falling and median home sale prices steadily rising from last year, Philadelphia's real estate market is holding firm for now.

Why it matters: We keep hearing a market crash is coming, but so far, local data doesn't support that.

What's happening: From May 2021 to May 2022, new listings were down 10% and pending sales were down 5.6%, according to Redfin.

  • More sellers are also dropping their asking price; price reductions increased by 8.5 percentage points from June 2021 to June 2022, MLS data show.

Yes, but: These changes are very small. If more listings flood the market this summer and buyers don't bite, that's when we would start to see more power shift into buyers' hands.

<b style='color: #8a0098'>New listings</b> and <b style='color: #00ab58'>pending sales</b> of Philly-area homes
Data: Redfin; Chart: Kavya Beheraj/Axios

Zoom out: Nationally, mortgage applications were down 24%, and, on average, 6.5% of sellers dropped their asking price each week in June, per Redfin's latest market update.

  • In June, national pending home sales were down 13% from the same time last year, the largest decline since May 2020, Redfin's report stated.

The bottom line: We're not seeing major changes in Philadelphia just yet, but we're starting to see early, albeit slight, signs of a cooler market ahead.


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