Year-over-year median sale prices and the number of homes sold increased across the Philadelphia region in January, according to the Long & Foster Real Estate Market Minute Report. Delaware County experienced the highest sales price jump with 23%, followed by a 16% increase in Montgomery County. 

The number units sold also increased across the region with Delaware County leading the way with a 22% incline. Active inventory continued to decline and homes sold quickly with days on market ranging from 27 to 41.  

The Long & Foster Real Estate Market Minute report for the Philadelphia region includes Bucks, Chester, Delaware, Montgomery and Philadelphia counties.

Mortgage interest rates remained steady before recently inching up to their highest point since mid-November. It’s important to note that interest rates are still below 3%, which provides the ability for homebuyers to buy more house. In addition, it allows renters to become homebuyers. 

“We anticipated there would be a slight interest rate bump in 2021 from their historic lows, but no one predicts they’ll go above 3%,” said Gary Scott, president of Long & Foster Real Estate. “Listing inventory is still at an all-time low, which is a concern, but interest rates are being held low and are the engine to help make sure our economy continues to run.” Scott added, the upcoming stimulus package and the increase in vaccine availability will help to bolster the economy.  “We don’t have a magic answer to the low inventory, but as the spring market approaches, we’re likely to see more listings come on the market,” said Scott.  

Scott provided some advice to homebuyers who may be debating on buying a new home versus an existing home. “With a new home, you have choices on the design and are able to customize it. Although everything is under warranty, I recommend getting a home inspection on a new home,” said Scott.  “You won’t get into a bidding war with new construction, but you’ll have to wait for the home to be built and wait to lock in your interest rate.” Scott added that with an existing home, the value is known, and a home warranty will cover any fixes and limit potential risks. However, he added, the look and feel of the home may not meet all your expectations, so plan to budget 3% to 5% of the sales price for upgrades. It all comes down to what the homebuyer wants in a home.   

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.