While inventory continued to decline throughout the Philadelphia real estate market last month, a few areas saw rising median sale prices, according to the Long & Foster Market Minute reports. The Philadelphia region includes Bucks, Chester, Delaware, Montgomery and Philadelphia counties.
Active inventory levels fell by double digits throughout the Philadelphia region in June, including a 25 percent decrease in Delaware County and a 24 percent decrease in Philadelphia County. A few areas experienced an increase in median sale prices. In Bucks County, the median sale price rose by 5 percent, followed by a 4 percent increase in Philadelphia County.
The entire Philadelphia region saw a decline in the number of homes sold last month, with decreases ranging from 1 percent in Chester County to 7 percent in Philadelphia County. Homes in the region are continuing to move at a steady pace, with most selling in one to two months on average. Montgomery County experienced the lowest days on market average at 37 days.
Gary Scott, president of Long & Foster Real Estate, said when it comes to the real estate market as a whole, consumers can expect the second half of this year to look much like the first half. Low inventory of homes will continue to make buying a challenge. However, he said he also sees opportunity on the horizon.
“When you think about household formations over the next three to five years, the demographics are our friend, not our foe,” Scott said. “The Boomers who own homes are going to need to sell their houses as they age, and the Millennials are going to start buying at a greater pace as they get married and start families. Millennials aren’t in the same hurry as previous generations to start a family and build wealth.”
In the meantime, the best thing that people navigating the current market can do is work with a real estate professional. Scott said consumers’ access to information and data, which can often be chaotic and incorrect, has heightened the need for professional advisors with total market knowledge.
“There are many real estate agents that are sales people who aren’t committed, aren’t professionally trained and aren’t prepared,” Scott said. “They’re not real estate professionals, who are trusted advisors that build solid relationships. It’s not hard to be a real estate agent, but it’s really hard to be a good one.”
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.