May 2023 Report
Philadelphia Metro
Philadelphia | May 2023
Home Demand Index
Demand for homes in the Philadelphia Metro area rose 11.9 percent in April according to the Bright MLS | T3 Home Demand Index. The Index, at 94, was in the Steady category, an increase from the Slow pace of demand the previous month. Compared with one year earlier, the Index was 24.2 percent lower.
Demand rose among all types of homes except entry-level condos where buyer interest was unchanged. The Index increased the most for luxury single-family homes, although buyer demand was at a Slow pace despite the rise. Luxury condos attracted the greatest buyer interest with demand in the High category. Demand for all other types of homes was in the Steady or Slow range. The months supply of entry-level condos fell slightly while all other segments of the market recorded an increase. The months supply ranged from a low of 1.5 months for entry-level and mid-market single-family homes to a high of 7.4 months for luxury condos.
Monthly Statistics for May 2023
Home Demand
Index
Index
94
(Steady)
Home Demand Index
from prior month
from prior month
84
Home Demand Index
from prior year
from prior year
124
Index change
from prior month
from prior month
11.9%
Index change from
same time last year
same time last year
-24.2%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Home Demand Index | Historical Year-over-Year Comparison
Although demand for homes rose for the fourth consecutive month, the overall increase has been lower than the same period last year. Lean inventory for many types of homes and higher monthly mortgage payments due to an increase in mortgage rates have each contributed to the lower level of demand.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Home Demand Map
Demand for homes in Delaware and Montgomery counties increased from Steady to Moderate over the month. The Index for counties in the New Jersey portion of the metro area was in the Slow or Limited category. Demand was Steady across the rest of the metro area counties in Pennsylvania and Delaware. Buyer interest was Moderate in the Salem-Cumberland market area and Steady in Central Pennsylvania. At the ZIP code level demand was in the High or Moderate range in one-third of communities, an increase from 21 percent in March. Demand in half of ZIP codes was in the Slow or Limited category, a decrease from nearly two-thirds the previous month.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Demand and Inventory by Home Type
Demand rose among all types of homes except entry-level condos where buyer interest was unchanged. The Index increased the most for luxury single-family homes, although buyer demand was at a Slow pace despite the rise. Luxury condos attracted the greatest buyer interest with demand in the High category. Demand for all other types of homes was in the Steady or Slow range. The months supply of entry-level condos fell slightly while all other segments of the market recorded an increase. The months supply ranged from a low of 1.5 months for entry-level and mid-market single-family homes to a high of 7.4 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Single Family Home Below $300k
Demand for entry-level single-family homes was up slightly in April, moving from Slow to Steady buyer interest over the month. There was a 1.5 months supply of homes on the market, unchanged from March, with both sales and listing down marginally.
Monthly Statistics for Single Family Home Below $300k
Home Demand
Index
Index
92
(Steady)
Home Demand Index
from prior month
from prior month
86
Home Demand Index
from prior year
from prior year
110
Months of
inventory
inventory
1.5
Average daily inventory last month
858
Inventory sold
last month
last month
582
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Single Family Home $300k - $675k
Demand for mid-market single-family homes ticked up in April. The Index rose 15 percent to 85 but remained in the Slow category. In comparison, the Index was at 121 one year earlier, a level reflecting Moderate demand. There was a 1.5 months supply of homes on the market, lower than any other segment except entry-level single-family homes, which also was at 1.5 months.
Monthly Statistics for Single Family Home $300k - $675k
Home Demand
Index
Index
85
(Slow)
Home Demand Index
from prior month
from prior month
74
Home Demand Index
from prior year
from prior year
121
Months of
Inventory
Inventory
1.5
Average daily inventory last month
1,928
Inventory sold
last month
last month
1,328
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Single Family Home Above $675k
The Bright MLS | T3 Home Demand Index rose 27 percent to 85 in April. Despite the strong gain, demand was in the Slow range. The inventory of homes on the market was at 2.8 months supply, higher than other lower-priced single-family segments, but nonetheless reflecting a relatively lean supply of homes for sale.
Monthly Statistics for Single Family Home Above $675k
Home Demand
Index
Index
85
(Slow)
Home Demand Index
from prior month
from prior month
67
Home Demand Index
from prior year
from prior year
129
Months of
Inventory
Inventory
2.8
Average daily inventory last month
894
Inventory sold
last month
last month
314
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Condo Below $375k
Demand for entry-level condos was unchanged in April compared with the previous month. The Index, at 91, reflected a Steady level of buyer interest. There was a 2.6 months supply of homes available for sale.
Monthly Statistics for Condo Below $375k
Home Demand
Index
Index
91
(Steady)
Home Demand Index
from prior month
from prior month
91
Home Demand Index
from prior year
from prior year
121
Months of
Inventory
Inventory
2.6
Average daily inventory last month
659
Inventory sold
last month
last month
250
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Condo Above $375k
Buyer interest in luxury condos rose in April according to the Bright MLS | T3 Home Demand Index. The Index, at 150, reflected a High level of demand and stronger buyer interest than any other segment of the Philadelphia Metro area market. There was an adequate level of inventory with a 7.4 months supply in April.
Monthly Statistics for Condo Above $375k
Home Demand
Index
Index
150
(High)
Home Demand Index
from prior month
from prior month
127
Home Demand Index
from prior year
from prior year
158
Months of
Inventory
Inventory
7.4
Average daily inventory last month
310
Inventory sold
last month
last month
42
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Demand for townhouses remained in the Steady category in April. The Index rose nine percent over the month to 106 but was 21 percent lower than a year earlier. The months supply of homes for sale rose marginally to 2.8 months mostly due to a slight uptick in the number of listings on the market
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
106
(Steady)
Home Demand Index
from prior month
from prior month
97
Home Demand Index
from prior year
from prior year
134
Months of
Inventory
Inventory
2.8
Average daily inventory last month
5,187
Inventory sold
last month
last month
1,846
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 May 2023 period with data collected from the previous month.
Released: May 11, 2023
Reference ID: 1827
Philadelphia | May 2023
Home Demand Map (Zip Codes)
Demand for homes in Delaware and Montgomery counties increased from Steady to Moderate over the month. The Index for counties in the New Jersey portion of the metro area was in the Slow or Limited category. Demand was Steady across the rest of the metro area counties in Pennsylvania and Delaware. Buyer interest was Moderate in the Salem-Cumberland market area and Steady in Central Pennsylvania. At the ZIP code level demand was in the High or Moderate range in one-third of communities, an increase from 21 percent in March. Demand in half of ZIP codes was in the Slow or Limited category, a decrease from nearly two-thirds the previous month.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com