The risk of your Philly home selling at a loss
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About 4% of the Philly metro's homes listed in May were at risk of selling at a loss, Redfin estimates.
The big picture: There are a lot more sellers than buyers in the U.S. real estate market, according to the real estate site.
- A small but growing share of sellers nationwide could potentially sell their homes for less than they paid for them.
By the numbers: Nearly 6% of U.S. homes for sale risked selling at a loss in May, up from around 4% a year earlier, though still historically low, per Redfin.
- Philly's doing better than many other big metros — and on par with places like Baltimore. In nearby Montgomery County, the rate is far lower, around 1.2%.
Between the lines: Homes purchased post-pandemic (after July 2022), as prices soared to new highs, are more likely to sell at a loss than those bought during or before, Redfin found.
With prices now softening, "sellers are in a position where they may need to choose between accepting a lower price, or taking the home off the market," Redfin senior economist Asad Khan said in the report.
Reality check: There's a difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Nearly all sellers have enough equity in their homes to sell them for more than they owe, per Redfin.
What we're watching: If U.S. home prices fall by 1% — as Redfin has predicted will happen by the end of 2025 — the overall share of homes at risk of selling at a loss would rise to 6.4%.