April 2023 Report
Philadelphia Metro
Philadelphia | April 2023
Home Demand Index
Demand for homes in the Philadelphia Metro area increased in March, according to the Bright MLS | T3 Home Demand Index. The Index rose 5.1 percent to 83 reflecting a level of buyer interest in the Slow category.
Demand was up marginally for all types of homes but continued to lag well-behind the year-earlier pace. The Index for luxury single-family homes was 40 percent lower than one year earlier, the largest shortfall among each type of home. Buyer interest in luxury condos remained stronger than any other type of home with a Moderate level of demand. The weakest demand was for luxury single-family homes with buyers showing a Limited interest in this segment in March. The months supply fell for each type of home mostly due to a rise in sales and only a small increase in the number of listings on the market. The months supply ranged from a low of 1.4 months for mid-market single-family homes to a high of 5.5 months for luxury condos.
Monthly Statistics for April 2023
Home Demand
Index
Index
83
(Slow)
Home Demand Index
from prior month
from prior month
79
Home Demand Index
from prior year
from prior year
117
Index change
from prior month
from prior month
5.1%
Index change from
same time last year
same time last year
-29.1%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Home Demand Index | Historical Year-over-Year Comparison
Demand for homes has risen at a slower pace this spring compared with the early months of last year. While the Index jumped in January, it has increased only marginally since then. By March the Index was nearly 30 percent lower than one year before. Higher mortgage rates and uncertainty about the economy likely contributed to the slowdown with would-be buyers also limited by low inventory.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Home Demand Map
Demand for homes was Slow in New Castle and Chester counties, Limited in the New Jersey portion of the market area and Steady across the rest of the metro area. Buyer interest was Steady in the Salem-Cumberland market area and at a Slow pace in Central Pennsylvania. The Index was in the Slow or Limited category in just over 60 percent ZIP codes in the Greater Philadelphia area, a slight decrease from the month before. Demand in 20 percent of ZIP codes was in the High or Moderate range in March, a marginal uptick compared with February.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Demand and Inventory by Home Type
Demand was up marginally for all types of homes but continued to lag well-behind the year-earlier pace. The Index for luxury single-family homes was 40 percent lower than one year earlier, the largest shortfall among each type of home. Buyer interest in luxury condos remained stronger than any other type of home with a Moderate level of demand. The weakest demand was for luxury single-family homes with buyers showing a Limited interest in this segment in March. The months supply fell for each type of home mostly due to a rise in sales and only a small increase in the number of listings on the market. The months supply ranged from a low of 1.4 months for mid-market single-family homes to a high of 5.5 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Single Family Home Below $300k
Buyer interest in entry-level single-family homes was up marginally in March. The Index, at 83, reflected a Slow pace of demand and was roughly one-fifth lower than a year earlier when demand was in the Steady category. An increase in sales and little change in the number of listings on the market resulted in a decrease in months supply to 1.5 months from 2.1 months in February.
Monthly Statistics for Single Family Home Below $300k
Home Demand
Index
Index
83
(Slow)
Home Demand Index
from prior month
from prior month
81
Home Demand Index
from prior year
from prior year
107
Months of
inventory
inventory
1.5
Average daily inventory last month
885
Inventory sold
last month
last month
604
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Single Family Home $300k - $680k
Like other segments of the Philadelphia Metro area market, demand for mid-market single-family homes ticked up in March. The Bright MLS | T3 Home Demand Index rose six percent to 73, a level consistent with a Slow pace of buyer interest. Buyers were confronted with very tight inventory conditions in March. The months supply fell to 1.4 months from two months in February largely due to an increase in sales and little change in the number of listings available for sale.
Monthly Statistics for Single Family Home $300k - $680k
Home Demand
Index
Index
73
(Slow)
Home Demand Index
from prior month
from prior month
69
Home Demand Index
from prior year
from prior year
110
Months of
Inventory
Inventory
1.4
Average daily inventory last month
1,925
Inventory sold
last month
last month
1,416
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Single Family Home Above $680k
Demand for luxury single-family homes was weak in March with the Index marginally higher but remaining in the Limited range, the only segment of the Philadelphia Metro area market in this category. Moreover, the Index was 40 percent lower than one year earlier when there was a Moderate level of buyer demand. The months supply fell to 2.6 months from 3.9 months in February reflecting tighter inventory conditions for buyers in the early months of the spring buying season.
Monthly Statistics for Single Family Home Above $680k
Home Demand
Index
Index
65
(Limited)
Home Demand Index
from prior month
from prior month
62
Home Demand Index
from prior year
from prior year
109
Months of
Inventory
Inventory
2.6
Average daily inventory last month
790
Inventory sold
last month
last month
306
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Condo Below $388k
The Bright MLS | T3 Home Demand Index for entry-level condos remained in the Slow category in March with the Index rising to 89 from 84 in February. Demand was also well below the Moderate pace one year earlier. There was a 2.8 months supply of homes for sale in March, down from 3.1 months in February.
Monthly Statistics for Condo Below $388k
Home Demand
Index
Index
89
(Slow)
Home Demand Index
from prior month
from prior month
84
Home Demand Index
from prior year
from prior year
122
Months of
Inventory
Inventory
2.8
Average daily inventory last month
669
Inventory sold
last month
last month
237
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Condo Above $388k
Buyer interest in luxury condos was in the Moderate demand category with the Index rising slightly compared with the previous month. That pace of demand contrasts with the High level of buyer interest one year earlier. There was an adequate inventory of condos available for sale at 5.5 months, although down somewhat from 7.1 months in February.
Monthly Statistics for Condo Above $388k
Home Demand
Index
Index
124
(Moderate)
Home Demand Index
from prior month
from prior month
119
Home Demand Index
from prior year
from prior year
179
Months of
Inventory
Inventory
5.5
Average daily inventory last month
273
Inventory sold
last month
last month
50
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | April 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Demand for townhouses was Steady in March. The Index increased slightly over the month to 95 but also was 26 percent lower than the Moderate pace of demand one year earlier. The months supply at 2.7 months was down from 3.7 months in February due to an increase in sales and an uptick in the number of listings for sale.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
95
(Steady)
Home Demand Index
from prior month
from prior month
91
Home Demand Index
from prior year
from prior year
128
Months of
Inventory
Inventory
2.7
Average daily inventory last month
5,137
Inventory sold
last month
last month
1,891
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Note
1. This report is generated with data from the following counties:
- Central Pennsylvania – Adams, PA; Berks, PA; Cumberland, PA; Dauphin, PA; Franklin, PA; Fulton, PA; Lancaster, PA; Lebanon, PA; Perry, PA; Schuylkill, PA; York, PA;
- Ocean County – Ocean, NJ;
- Philadelphia Metro – Bucks, PA; Burlington, NJ; Camden, NJ; Chester, PA; Delaware, PA; Gloucester, NJ; Kent, DE; Mercer, NJ; Montgomery, PA; New Castle, DE; Philadelphia, PA;
- Salem-Cumberland – Cumberland, NJ; Salem, NJ;
2. This report is for the April 2023 period with data collected from the previous month.
Released: April 11, 2023
Reference ID: 1811
Philadelphia | April 2023
Home Demand Map (Zip Codes)
Demand for homes was Slow in New Castle and Chester counties, Limited in the New Jersey portion of the market area and Steady across the rest of the metro area. Buyer interest was Steady in the Salem-Cumberland market area and at a Slow pace in Central Pennsylvania. The Index was in the Slow or Limited category in just over 60 percent ZIP codes in the Greater Philadelphia area, a slight decrease from the month before. Demand in 20 percent of ZIP codes was in the High or Moderate range in March, a marginal uptick compared with February.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com