Areas of the greater Philadelphia real estate market experienced increasing home sales and median sale prices in November, and the entire region saw low average days on market. Overall, it was a good month for many of Long & Foster’s markets, according to the Long & Foster Market Minute reports. The Philadelphia region includes Bucks, Chester, Delaware, Montgomery and Philadelphia counties.

The number of homes sold increased in parts of the Philadelphia market in November when compared to the previous year. Philadelphia County experienced an 8 percent increase in home sales. Median sale prices also rose in a number of areas, including by 15 percent in Philadelphia County and by 7 percent in Chester County.

“The Philadelphia market is one of the most challenged in our industry right now because the city is one of the hottest markets in the country, which is why it’s so important to know what’s happening in your hyperlocal market,” said Gary Scott, president of Long & Foster Real Estate. “Builders are catering to luxury buyers and Boomers who are looking to downsize and move to more urban areas, and competition is high among younger buyers.”

Active inventory levels declined throughout the Philadelphia region last month, with Delaware County experiencing a 25 percent decline. Homes in the region are selling in about six to eight weeks on average. Bucks County saw the lowest average days on market at 46 days.

Scott said the lack of inventory is not going to go away in the foreseeable future, and is most challenging for first-time homebuyers. He said first-time homebuyers in fast-moving markets need to make sure they’re ready to buy when they find a home they like.

“First-time homebuyers often don’t have as many funds available for a down payment,” Scott said. “In scenarios where multiple offers are being made on a property, those who are selling a home to purchase a new one have the advantage of recent years of price appreciation that provides them a larger down payment.”

“If a first-time homebuyer isn’t ready to make the purchase someone else will be,” Scott said. “They can’t get caught up in the conundrum of searching. They may be looking for a home with shiny new features that simply isn’t available at their price point.”

It’s also important for homeowners and homebuyers at all levels to remain aware of what happens in terms of taxes, Scott said.

“It will have an impact on homeownership, we just don’t know what, when and how long it will take. It’s probably a lot more bark than bite, but uncertainty creates fear,” Scott said. “Something to keep in mind though, is that homeownership hasn’t always been an economic decision where the goal is a tax write off. We can’t forget that, for many, owning a home is also emotional – it’s a way to have a place of one’s own to create memories and have the quality of life they want.”

The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.

Information included in this report is based on data supplied by TREND multiple listing service and its member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of TREND or Long & Foster Real Estate.