Top 3 Real Estate Market Trends in Greater Philadelphia for 2024

Mid-Year Real Estate Market Update: Greater Philadelphia Area

As we reach the end of June, it’s time to evaluate the real estate market's first half of 2024. The first six months are in the books, and I’m here to provide insights into the showing activity, inventory, and pricing trends in the Greater Philadelphia area.

What's Happening in the Real Estate Market?

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Key Metrics: Lead Indicators

I’m a firm believer in following lead indicators—the current market activities—rather than relying on outdated data from 60 or 90 days ago, which many experts often use. Here are three critical numbers we’ve been closely monitoring, both nationally and locally.

1. New Listings Data

The new listings data is one of the most significant pain points for buyers, sellers, and real estate agents. While many agents have complained about the lack of inventory, we are now seeing an increase in new listings.

  • National Trends:
    • In the past week, 70,606 new homes were listed in 2024, compared to 61,749 in 2023 and 90,741 in 2022.
    • Although we’re seeing more inventory than last year, it’s not quite at the level we saw in 2022.
  • Local Trends:
    • In the Greater Philadelphia area, new listings grew by 12.8% compared to the same time last year.
    • The total supply of active listings increased by 18.8%, indicating that homes are staying on the market longer.

2. Pricing Trends

Despite the increase in inventory, we’re not seeing a corresponding drop in prices in the Greater Philadelphia area.

  • National Pricing Trends:
    • Sale prices are up 6.7% compared to last year in the Greater Philadelphia metro area.
    • The median listing price is 11.6% higher than it was last year.
    • We’re seeing more homes make price adjustments, with 38% of all active listings in 2024 experiencing a price change, compared to 32% in 2023 and 31% in 2022.

3. Showings Activity

Showings are a real indicator of demand, and according to Bright MLS, showings were down over 12% compared to this time last year through the end of May.

  • Local Showings Trends:
    • Fewer people are looking at homes, even though more homes are coming to the market.
    • This decrease in showings, coupled with more price adjustments, suggests that demand is stabilizing.

Implications for Buyers and Sellers

For Sellers:

  • The market is normalizing, resembling the pre-pandemic market conditions.
  • With inventory growing and homes staying on the market longer, pricing your home right at value is crucial.
  • Sellers should consider moving their timeline up to avoid further market normalization, which could impact home prices.

For Buyers:

  • Increased inventory means more options, but also the potential for longer waits to secure a home.
  • Pay attention to days on market data; homes that have been listed for 10-13 days may present opportunities for negotiation.
  • The stabilizing demand could provide a more balanced market for buyers, reducing the urgency to make quick decisions.

Conclusion

The Greater Philadelphia real estate market is experiencing growth in new listings and active inventory, alongside stable or rising prices and a decrease in showing activity. These trends indicate a more balanced market, providing opportunities and challenges for both buyers and sellers. For detailed, personalized advice, feel free to schedule a call with our team.

Stay tuned for further updates and insights into the real estate market. If you found this information valuable, subscribe to our channel and turn on notifications to stay informed about the latest market trends.

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