CHANTILLY, Va., Jan. 23, 2018 – Home sales fell in the greater Philadelphia real estate market last month, while median sale prices rose throughout much of the region, according to the Long & Foster Real Estate Market Minute report. The median sale price rose by 7 percent in Philadelphia County, followed by a 5 percent increase in Montgomery County. Inventory continued to fall by double digits region-wide, and days on market averages ranged from 44 days in Philadelphia County to 56 days in Chester County.
“Philadelphia, particularly downtown Philadelphia, is probably one of the most vibrant cities right now in terms of building,” said Gary Scott, president of Long & Foster Real Estate. “Instead of mansions on the main line, buyers are looking for homes to enhance their quality of life – like a luxury penthouse overlooking the Delaware River where they can walk to shops and restaurants.”
“We are also seeing a decrease in interest rates, which was not predicted,” Scott said. “I believe the first quarter is going to be really robust for three reasons – the spring market, which traditionally begins on January 15, the reduction in interest rates and price depreciation in some markets.”
Although the market data looks much the same from one month to the next, that doesn’t mean the same thing is happening in each market, Scott said. Local employment, for example could impact one market but not the others around it.
“The important thing to remember is that real estate is hyperlocal,” said Scott. “Consumers have to be cautious about reading a singular headline and thinking, ‘It’s about me.’ There are so many unique factors that you’ve got to take into account regarding each area’s real estate market, which is why it’s important to work with a real estate professional like those at Long & Foster Real Estate.”
As of now, it’s hard to know how the government shutdown will affect the real estate market. Scott said it isn’t having large impacts yet because there’s a lag between when we see real estate activity and when we see the results, it’s still on the radar.