January 2023 Report
Philadelphia Metro
Philadelphia | January 2023
Home Demand Index
Demand for homes in the Philadelphia Metro area was Limited in December according to the Bright MLS | T3 Home Demand Index. The Index fell 25 percent over the month and was 17.4 percent lower than one year earlier.
Demand for each type of home fell in December. The largest decreases were in the single-family and townhouse segments, each falling more than 20 percent over the month. Buyer interest was strongest for higher-priced single-family homes and higher-priced condos although demand was in the Slow category. Demand in all other segments was Limited. The months supply of higher-priced condos rose in December but fell among all other segments. The months supply ranged from 1.6 months for mid-priced single-family homes to 9.3 months for higher-priced condos.
Monthly Statistics for January 2023
Home Demand
Index
Index
57
(Limited)
Home Demand Index
from prior month
from prior month
76
Home Demand Index
from prior year
from prior year
69
Index change
from prior month
from prior month
-25%
Index change from
same time last year
same time last year
-17.4%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Home Demand Index | Historical Year-over-Year Comparison
The Index has been on a steady downward trend since July as a combination of factors reduced buyer interest in Philadelphia Metro area homes. Higher mortgage rates have reduced affordability even as the pace of home price increases has eased. An unsettled economic outlook along with the usual end-of-year slowdown in market activity also have contributed to the drop in demand.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Home Demand Map
Demand was Slow in Kent and New Castle counties and Limited in the other counties in the Philadelphia Metro area. The Index was lower in each metro area county in December compared with November. Buyer interest was Slow in the Salem-Cumberland market area and at a Limited pace in Central Pennsylvania. Across the Greater Philadelphia market area, demand was in the Slow or Limited category in 84 percent of ZIP codes compared with 69 percent in November. The Index was in the High or Moderate range in fewer than one-in-ten ZIP codes in December.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Demand and Inventory by Home Type
Demand for each type of home fell in December. The largest decreases were in the single-family and townhouse segments, each falling more than 20 percent over the month. Buyer interest was strongest for higher-priced single-family homes and higher-priced condos although demand was in the Slow category. Demand in all other segments was Limited. The months supply of higher-priced condos rose in December but fell among all other segments. The months supply ranged from 1.6 months for mid-priced single-family homes to 9.3 months for higher-priced condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Single Family Home Below $195k
Demand for lower-priced single-family homes fell in December from an already-low November pace. The Index, at 16, remained well below the threshold indicating Limited buyer interest. The months supply decreased to 2.3 months from 2.6 months in November reflecting a decrease in listings and a small uptick in sales over the month.
Monthly Statistics for Single Family Home Below $195k
Home Demand
Index
Index
16
(Limited)
Home Demand Index
from prior month
from prior month
21
Home Demand Index
from prior year
from prior year
29
Months of
inventory
inventory
2.3
Average daily inventory last month
307
Inventory sold
last month
last month
133
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Single Family Home $195k - $485k
The Bright MLS | T3 Home Demand Index for mid-priced single-family homes fell 26 percent in December to 56, a level of activity in the Limited category. Demand was in the Slow range in November. There was a 1.6 months supply of homes for sale, a drop from two months in November and lower than any other segment of the Philadelphia Metro area market.
Monthly Statistics for Single Family Home $195k - $485k
Home Demand
Index
Index
56
(Limited)
Home Demand Index
from prior month
from prior month
76
Home Demand Index
from prior year
from prior year
71
Months of
Inventory
Inventory
1.6
Average daily inventory last month
2,418
Inventory sold
last month
last month
1,468
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Single Family Home Above $485k
Buyer interest in higher-priced single-family homes fell 30 percent in December reflecting a Slow pace of demand. In November demand was in the Moderate range. The decrease in the Index was greater than any other segment of the metro market. The months supply fell to two months from 2.4 months in November largely due to a drop in the number of listings.
Monthly Statistics for Single Family Home Above $485k
Home Demand
Index
Index
82
(Slow)
Home Demand Index
from prior month
from prior month
117
Home Demand Index
from prior year
from prior year
79
Months of
Inventory
Inventory
2
Average daily inventory last month
1,542
Inventory sold
last month
last month
758
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Condo Below $360k
The Bright MLS | T3 Home Demand Index for the lower-priced condo segment fell to 57 in December, reflecting a Limited level of buyer interest. The months supply fell to 2.1 months from 2.4 months in November.
Monthly Statistics for Condo Below $360k
Home Demand
Index
Index
57
(Limited)
Home Demand Index
from prior month
from prior month
71
Home Demand Index
from prior year
from prior year
71
Months of
Inventory
Inventory
2.1
Average daily inventory last month
493
Inventory sold
last month
last month
230
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Condo Above $360k
Demand for higher-priced condos was Slow in December, a decrease from a Steady pace in November. The Index, at 84, was down 12 percent, the smallest decrease among all types of Philadelphia Metro area homes. The months supply rose to 9.3 months from 8.4 months in November.
Monthly Statistics for Condo Above $360k
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
85
Months of
Inventory
Inventory
9.2
Average daily inventory last month
287
Inventory sold
last month
last month
31
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Buyer interest in townhouses was Limited in December, down from a Slow pace of demand the previous month. The Index, at 65, was 23 percent lower over the month. The months supply fell to 3.2 months in December from 3.6 months in November due to a decrease in the number of listing and a marginal increase in sales.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
65
(Limited)
Home Demand Index
from prior month
from prior month
84
Home Demand Index
from prior year
from prior year
81
Months of
Inventory
Inventory
3.2
Average daily inventory last month
5,570
Inventory sold
last month
last month
1,739
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 January 2023 period with data collected from the previous month.
Released: January 11, 2023
Reference ID: 1746
Philadelphia | January 2023
Home Demand Map (Zip Codes)
Demand was Slow in Kent and New Castle counties and Limited in the other counties in the Philadelphia Metro area. The Index was lower in each metro area county in December compared with November. Buyer interest was Slow in the Salem-Cumberland market area and at a Limited pace in Central Pennsylvania. Across the Greater Philadelphia market area, demand was in the Slow or Limited category in 84 percent of ZIP codes compared with 69 percent in November. The Index was in the High or Moderate range in fewer than one-in-ten ZIP codes in December.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com