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