December 2022 Report
Philadelphia Metro
Philadelphia | December 2022
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Philadelphia Metro area fell 13.8 percent in November to 75, a reading in the Slow range of demand. The HDI was 19.4 percent lower than one year earlier.
The Index for each type of home fell over the month ranging from a 12 percent decrease for mid-priced single-family homes and townhouses to a 25 percent drop for higher-priced single-family homes. Buyer interest in November was strongest for higher-priced single-family homes with a Moderate level of buyer interest, down from a High level of activity in October. Demand for other types of homes was mixed. The months supply rose for each type of home in November. The inventory of homes ranged from a two-month supply for mid-priced single-family homes to an 8.4 months supply for higher-priced condos.
Monthly Statistics for December 2022
Home Demand
Index
Index
75
(Slow)
Home Demand Index
from prior month
from prior month
87
Home Demand Index
from prior year
from prior year
93
Index change
from prior month
from prior month
-13.8%
Index change from
same time last year
same time last year
-19.4%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Home Demand Index | Historical Year-over-Year Comparison
Demand for homes in the Philadelphia Metro area has been decreasing since midyear with a cumulative drop in the Index of nearly 38 percent since June. The Index has been below year-earlier levels since March as the headwinds of higher mortgage rates and deteriorating affordability push some would-be buyers to the sidelines.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Home Demand Map
In the Philadelphia Metro area, demand was Steady in New Castle, Kent, Delaware, and Montgomery counties. Demand was Slow in in the remainder of the Pennsylvania suburbs and Limited in the New Jersey counties in the metro area. The Index was lower in each Philadelphia Metro area county in November compared with October. Buyer interest eased to the Steady category in the Salem-Cumberland market area and remained at a Slow pace in Central Pennsylvania. Across the Greater Philadelphia market area, the Index in nearly 70 percent of ZIP codes was in the Slow or Limited range, an increase from 56 percent one month earlier. Demand in fewer than one-in-ten ZIP codes was in the High range in November, a drop from 16 percent of communities in October.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Demand and Inventory by Home Type
The Index for each type of home fell over the month ranging from a 12 percent decrease for mid-priced single-family homes and townhouses to a 25 percent drop for higher-priced single-family homes. Buyer interest in November was strongest for higher-priced single-family homes with a Moderate level of buyer interest, down from a High level of activity in October. Demand for other types of homes was mixed. The months supply rose for each type of home in November. The inventory of homes ranged from a two-month supply for mid-priced single-family homes to an 8.4 months supply for higher-priced condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Single Family Home Below $195k
Demand for single-family homes remained in the Limited category according to the Bright MLS | T3 Home Demand Index. The Index, at 20, was down marginally from October and by more than 40 percent from the same month one year earlier. The months supply rose to 2.6 from 2.4 in October, the second monthly increase in a row.
Monthly Statistics for Single Family Home Below $195k
Home Demand
Index
Index
20
(Limited)
Home Demand Index
from prior month
from prior month
23
Home Demand Index
from prior year
from prior year
36
Months of
inventory
inventory
2.6
Average daily inventory last month
321
Inventory sold
last month
last month
122
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Single Family Home $195k - $485k
Buyer interest in mid-priced single-family homes softened in November. The Index, at 75, was consistent with a Slow pace of demand. There was a two-month supply of homes on the market, up from 1.8 in October, the rise largely due to a lower level of sales compared with the month before.
Monthly Statistics for Single Family Home $195k - $485k
Home Demand
Index
Index
75
(Slow)
Home Demand Index
from prior month
from prior month
85
Home Demand Index
from prior year
from prior year
99
Months of
Inventory
Inventory
2
Average daily inventory last month
2,817
Inventory sold
last month
last month
1,442
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Single Family Home Above $485k
The Bright MLS | T3 Home Demand Index for higher-priced single-family homes fell 25 percent in November, a larger decline than any other segment of the Philadelphia Metro market. The Index, at 117, reflected a Moderate pace of demand following several months of High buyer interest. Despite the decline, the Index was just five percent lower than one year earlier, the only segment of the market to be roughly on par with the level of demand one year earlier. The months supply, at 2.4. was up marginally from October.
Monthly Statistics for Single Family Home Above $485k
Home Demand
Index
Index
117
(Moderate)
Home Demand Index
from prior month
from prior month
157
Home Demand Index
from prior year
from prior year
123
Months of
Inventory
Inventory
2.4
Average daily inventory last month
1,899
Inventory sold
last month
last month
780
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Condo Below $360k
Demand for lower-priced condos remained in the Slow category in November with the Index at 71. Compared with one year earlier, the Index was 26 percent lower. The decline reflects the impact of higher mortgage rates on demand for lower-priced condos, which often attract first-time buyers. The months supply rose to 2.4 months from 2.2 months in October.
Monthly Statistics for Condo Below $360k
Home Demand
Index
Index
71
(Slow)
Home Demand Index
from prior month
from prior month
88
Home Demand Index
from prior year
from prior year
96
Months of
Inventory
Inventory
2.4
Average daily inventory last month
543
Inventory sold
last month
last month
226
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Condo Above $360k
Demand for higher-priced condos was Steady in November, a softening from the Moderate pace of demand in October. The months supply jumped to 8.4 months from six months in October. The change was driven by a small drop in the number of units sold in a segment of the market that accounted for just three percent of inventory in November.
Monthly Statistics for Condo Above $360k
Home Demand
Index
Index
94
(Steady)
Home Demand Index
from prior month
from prior month
113
Home Demand Index
from prior year
from prior year
106
Months of
Inventory
Inventory
8.5
Average daily inventory last month
321
Inventory sold
last month
last month
38
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2022
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The Bright MLS | T3 Home Demand Index for townhouses was down 12 percent to 84, a reading that is consistent with a Slow pace of demand. There was a 3.6 months supply of homes on the market, an increase from 3.2 in October, the change due mostly to a lower level of sales over the month.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
84
(Slow)
Home Demand Index
from prior month
from prior month
95
Home Demand Index
from prior year
from prior year
104
Months of
Inventory
Inventory
3.6
Average daily inventory last month
6,113
Inventory sold
last month
last month
1,698
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 December 2022 period with data collected from the previous month.
Released: December 11, 2022
Reference ID: 1731
Philadelphia | December 2022
Home Demand Map (Zip Codes)
In the Philadelphia Metro area, demand was Steady in New Castle, Kent, Delaware, and Montgomery counties. Demand was Slow in in the remainder of the Pennsylvania suburbs and Limited in the New Jersey counties in the metro area. The Index was lower in each Philadelphia Metro area county in November compared with October. Buyer interest eased to the Steady category in the Salem-Cumberland market area and remained at a Slow pace in Central Pennsylvania. Across the Greater Philadelphia market area, the Index in nearly 70 percent of ZIP codes was in the Slow or Limited range, an increase from 56 percent one month earlier. Demand in fewer than one-in-ten ZIP codes was in the High range in November, a drop from 16 percent of communities in October.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com