December 2020 Report
Philadelphia Metro
Philadelphia | December 2020
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Philadelphia MLS market area decreased by 22 percent in November compared with the previous month to a reading of 98. Despite the decline, the level of buyer interest remained significantly higher than the same month one year earlier. Overall, the demand for residential real estate in the area remained Steady.
Consistent with a decrease in the overall Bright MLS | T3 Home Demand Index, the level of buyer interest among each of the home types also fell in November. Although there are many influences on buyer demand, especially in a year with disruptions to the homebuying process, a portion of the decline in the Index for each segment also reflects the usual seasonal slowdown in buyer demand at year’s end.
Except for single-family homes priced below $195,000, all segments of the market recorded a level of buyer interest that was higher than one year ago. Low mortgage interest rates no doubt explain some of the strength, which has the effect of mitigating a portion of the affordability burden stemming from rising home prices.
Monthly Statistics for December 2020
Home Demand
Index
Index
98
(Steady)
Home Demand Index
from prior month
from prior month
126
Home Demand Index
from prior year
from prior year
83
Index change
from prior month
from prior month
-22.2%
Index change from
same time last year
same time last year
18.1%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Home Demand Index | Historical Year-over-Year Comparison
Homebuyer demand, as tracked by the Bright MLS | T3 Home Demand Index, softened in November, following several months of robust activity as would-be buyers flocked back to the market following Covid-19 pandemic-related restrictions in the spring. Even accounting for the most recent decline in the Index, buyer interest was higher than one year earlier due in part to favorable mortgage interest rates and lingering pent-up demand from earlier in the year. The decrease in the November Index reading is consistent with an expected seasonal decline in buyer interest and tracks the decrease recorded at the end of 2019.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Home Demand Map
Even with the generally softer level of demand in the Philadelphia market area, buyer interest in more than one-third of ZIP codes was in the High or Moderate range. Nearly all of these areas were in the Pennsylvania or Delaware portion of the market area. Half of ZIP codes reflected buyer demand in the Slow or Limited category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Demand and Inventory by Home Type
Consistent with a decrease in the overall Bright MLS | T3 Home Demand Index, the level of buyer interest among each of the home types also fell in November. Although there are many influences on buyer demand, especially in a year with disruptions to the homebuying process, a portion of the decline in the Index for each segment also reflects the usual seasonal slowdown in buyer demand at year’s end.
Except for single-family homes priced below $195,000, all segments of the market recorded a level of buyer interest that was higher than one year ago. Low mortgage interest rates no doubt explain some of the strength, which has the effect of mitigating a portion of the affordability burden stemming from rising home prices.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Single Family Home Below $195k
Demand for single-family homes priced below $195,000 was soft in November. The Index fell by 20 percent to a level of 59, well below the threshold designating Limited buyer demand. Compared to one year ago, the level of buyer interest was significantly lower. Some of the near-term softness in buyer demand is likely linked to the weak economy that has affected many potential buyers at this price point. Even so, the pace of sales was strong enough to draw down the available inventory of homes for sale to just 1.5 months supply.
Monthly Statistics for Single Family Home Below $195k
Home Demand
Index
Index
59
(Limited)
Home Demand Index
from prior month
from prior month
74
Home Demand Index
from prior year
from prior year
84
Months of
inventory
inventory
1.5
Average daily inventory last month
986
Inventory sold
last month
last month
655
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Single Family Home $195k - $485k
The Bright MLS | T3 Home Demand Index for mid-priced single-family homes fell by 23 percent in November to a level of 103, a reading that reflects a Steady market. As significantly, the Index remained above the level of one year earlier, supported in no small part by buyers looking to lock-in favorable mortgage interest rates. Buyers searching for a home faced tight inventory conditions with a months supply of just 1.1, the lowest among the single-family home segments.
Monthly Statistics for Single Family Home $195k - $485k
Home Demand
Index
Index
103
(Steady)
Home Demand Index
from prior month
from prior month
133
Home Demand Index
from prior year
from prior year
81
Months of
Inventory
Inventory
1.1
Average daily inventory last month
3,378
Inventory sold
last month
last month
2,970
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Single Family Home Above $485k
Buyer interest in single-family homes priced above $485,000 softened in November as reflected in a decrease of 32 percent in the Index. Compared to one year earlier, however, demand was significantly higher. Inventory conditions remained challenging even with softer underlying demand. The months supply was just 2.4.
Monthly Statistics for Single Family Home Above $485k
Home Demand
Index
Index
112
(Moderate)
Home Demand Index
from prior month
from prior month
164
Home Demand Index
from prior year
from prior year
70
Months of
Inventory
Inventory
2.4
Average daily inventory last month
2,210
Inventory sold
last month
last month
926
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Condo Below $360k
Buyer interest in condos priced below $360,000 eased in November. The Bright MLS | T3 Home Demand Index fell by 16 percent to a reading of Steady. Consistent with most other segments in the Philadelphia market area, buyer demand remained higher than a year ago. Furthermore, inventory conditions were more favorable compared with similarly priced single-family homes. The months supply rose to 3.2 from 2.3 in October.
Monthly Statistics for Condo Below $360k
Home Demand
Index
Index
106
(Steady)
Home Demand Index
from prior month
from prior month
126
Home Demand Index
from prior year
from prior year
81
Months of
Inventory
Inventory
3.2
Average daily inventory last month
1,142
Inventory sold
last month
last month
360
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Condo Above $360k
Condo Above $360k
The demand for higher-priced condos, those listed for more than $360,000, fell in November and can be characterized as Steady. The number of sales in November, at just 56, suggests that the demand for properties in this price range can be highly variable from one month to another. However, for buyers searching for condos in this price range, there was a 7.7 months supply, solidly above what is generally considered adequate.
Monthly Statistics for Condo Above $360k
Home Demand
Index
Index
91
(Steady)
Home Demand Index
from prior month
from prior month
123
Home Demand Index
from prior year
from prior year
80
Months of
Inventory
Inventory
7.7
Average daily inventory last month
433
Inventory sold
last month
last month
56
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2020
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
While demand for townhouses declined by 21 percent in November, buyer interest can still be characterized as Steady. Despite the decline, the Index was still 20 percent above the same month one year earlier. Inventory conditions were challenging, although marginally more favorable compared with lower- and mid-priced single-family home segments.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
104
(Steady)
Home Demand Index
from prior month
from prior month
131
Home Demand Index
from prior year
from prior year
87
Months of
Inventory
Inventory
1.9
Average daily inventory last month
5,961
Inventory sold
last month
last month
3,114
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Note
1. This report is generated with data from the following counties: Berks, PA; Bucks, PA; Burlington, NJ; Camden, NJ; Chester, PA; Delaware, PA; Gloucester, NJ; Kent, DE; Mercer, NJ; Montgomery, PA; New Castle, DE; Philadelphia, PA; Salem, NJ
2. This report is for the December 2020 period with data collected from the previous month.
Released: March 3, 2021
Reference ID: 1065
Philadelphia | December 2020
Home Demand Map (Zip Codes)
Even with the generally softer level of demand in the Philadelphia market area, buyer interest in more than one-third of ZIP codes was in the High or Moderate range. Nearly all of these areas were in the Pennsylvania or Delaware portion of the market area. Half of ZIP codes reflected buyer demand in the Slow or Limited category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com