Make no mistake we still are in a buyers market in Philadelphia and probably will be for some time. The housing market took a much needed correction after a number of years of unwise purchasing but unlike what the media would have us believe, a correction in the housing market doesn’t equate to a crash. Unfortunately, the ongoing negative news about the troubled areas in the U.S. has caused a ripple effect, with home buyers and sellers on a national level exercising caution before making a decision. This has caused an overall slowdown in the marketplace.
The National Association of Realtors says the US housing market showed signs of stability in February and existing home sales rose 2.8% nationally and up 11.3% in the Northeast, up for the first time in 7 months.
True, the numbers of homes sold in 2007 have dropped from the year before, but 2007 is still among the highest years on record, with numbers of sales for 2008 projected to be even higher than the levels seen in 2002. Inventory in the Philadelphia region still remains high but is moving in the right direction. This equates to good news for buyers who have more homes at more price ranges from which to choose.
Philly Median Home Prices:
- The median sold price for 2006 was $180,503
- The median sold price for 2007 was $185,204
- This represents a 2.5 % increase in price (nationally there was a decrease of 8.2%)
Philly Sales Volume of Houses Sold:
- There were 17,667 homes sold in 2006 for a sold volume of $3,188,950,036
- There were 15,735 homes sold in 2007 for a sold volume of $2,914,195,066
- There were 1,932 fewer homes sold which equates to a decrease in sold volume of 8.6% (nationally 23.8%)
- Philly has fared much better than the national average both in median sold home prices and in volume of homes sold
- Housing demand in the Philadelphia region is down from 2006 but still relatively strong
- There is a smaller percentage of supply in Philly than there is in the majority of the country
Houses that are priced consistent with market guidelines are attractive to buyers
- Attractive listings increase Buyer demand
- Increased demand reduces supply
- Fact-based pricing creates a healthy real estate market