October 2023 Report
Philadelphia Metro
Philadelphia | October 2023
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Philadelphia Metro area decreased 42.4 percent to 49 in September, a level consistent with Limited buyer demand. Demand was in the Slow range in August. The Index was 49.5 percent lower than one year earlier.
Buyer interest in all types of Philadelphia Metro area homes was significantly lower in September. The Index for entry-level single-family homes fell by more than half over the month while buyer interest in other market segments was down only somewhat less. Buyer interest was strongest for luxury condos, with Slow demand, while all other types of homes attracted Limited buyer activity. The months supply rose for each market segment reflecting generally lower sales paired with little change in the number of listings for sale. The months supply ranged from 1.5 months for mid-market single-family homes to 5.2 months for luxury condos.
Monthly Statistics for October 2023
Home Demand
Index
Index
49
(Limited)
Home Demand Index
from prior month
from prior month
85
Home Demand Index
from prior year
from prior year
97
Index change
from prior month
from prior month
-42.4%
Index change from
same time last year
same time last year
-49.5%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Home Demand Index | Historical Year-over-Year Comparison
Demand for homes in the Philadelphia Metro area was down for the third consecutive month although the September decline was much greater than the month before. The significant fall in the Index was likely the result of higher mortgage rates, which have risen to roughly 7.3 percent from just over 6 percent at the start of the year. The result has been a marked deterioration in affordability that has sidelined would-be homebuyers.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Home Demand Map
Buyer interest was in the Limited category in each of the Philadelphia Metro area counties in September. The Index was highest in Kent and Philadelphia counites and lowest in Gloucester and Mercer counties. Buyer interest was Slow in the Salem-Cumberland market area and Limited in Central Pennsylvania. Across the Greater Philadelphia area demand was in the Slow or Limited range in 92 percent of communities.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Demand and Inventory by Home Type
Buyer interest in all types of Philadelphia Metro area homes was significantly lower in September. The Index for entry-level single-family homes fell by more than half over the month while buyer interest in other market segments was down only somewhat less. Buyer interest was strongest for luxury condos, with Slow demand, while all other types of homes attracted Limited buyer activity. The months supply rose for each market segment reflecting generally lower sales paired with little change in the number of listings for sale. The months supply ranged from 1.5 months for mid-market single-family homes to 5.2 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Single Family Home Below $308k
The Bright MLS | T3 Home Demand Index for entry-level single-family homes decreased 52 percent in September to 41 indicating a Limited level of buyer interest. Moreover, demand was weaker than any other segment of the Philadelphia Metro area market. The months supply of homes, at 1.6 months, was up marginally from 1.5 the previous month.
Monthly Statistics for Single Family Home Below $308k
Home Demand
Index
Index
41
(Limited)
Home Demand Index
from prior month
from prior month
86
Home Demand Index
from prior year
from prior year
94
Months of
inventory
inventory
1.6
Average daily inventory last month
841
Inventory sold
last month
last month
542
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Single Family Home $308k - $695k
Buyer interest in mid-market single-family homes was down significantly in September according to the Bright MLS | T3 Home Demand Index. The Index, at 44, reflected a Limited pace of demand. There was a 1.5 months supply of homes available for sale, up from 1.2 months in August.
Monthly Statistics for Single Family Home $308k - $695k
Home Demand
Index
Index
44
(Limited)
Home Demand Index
from prior month
from prior month
79
Home Demand Index
from prior year
from prior year
95
Months of
Inventory
Inventory
1.5
Average daily inventory last month
2,303
Inventory sold
last month
last month
1,539
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Single Family Home Above $695k
Demand for luxury single-family homes was down markedly in September according to the Bright MLS | T3 Home Demand Index. At 45, the Index was consistent with a Limited pace of buyer interest. There was a 2.6 months supply of homes available for sale, up from 1.7 months in August.
Monthly Statistics for Single Family Home Above $695k
Home Demand
Index
Index
45
(Limited)
Home Demand Index
from prior month
from prior month
71
Home Demand Index
from prior year
from prior year
84
Months of
Inventory
Inventory
2.6
Average daily inventory last month
1,056
Inventory sold
last month
last month
413
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Condo Below $390k
The Index for entry-level condos fell 42 percent in September to a level consistent with Limited buyer interest. Demand was in the Slow category in August. Compared with one year earlier, the Index was 50 percent lower. The months supply, at 2.7, was up from 2.2 months in August.
Monthly Statistics for Condo Below $390k
Home Demand
Index
Index
49
(Limited)
Home Demand Index
from prior month
from prior month
85
Home Demand Index
from prior year
from prior year
101
Months of
Inventory
Inventory
2.7
Average daily inventory last month
571
Inventory sold
last month
last month
214
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Condo Above $390k
Demand for luxury condos was lower in September, with the Index decreasing 19 percent over the month to 86, a level consistent with a Slow pace of buyer interest. Compared with one year earlier, the Index was 25 percent lower, a smaller year-over-year gap than any other type of Philadelphia Metro area home. The months supply, at 5.2 months, was up marginally from August.
Monthly Statistics for Condo Above $390k
Home Demand
Index
Index
86
(Slow)
Home Demand Index
from prior month
from prior month
106
Home Demand Index
from prior year
from prior year
114
Months of
Inventory
Inventory
5.2
Average daily inventory last month
289
Inventory sold
last month
last month
55
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | October 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The Index for townhouses was down 39 percent in September reflecting demand in the Limited category. The Index was 46 percent lower compared with one year earlier. There was a 3-month supply of homes on the market, up from 2.5 months in August largely attributable to a decrease in sales over the month.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
57
(Limited)
Home Demand Index
from prior month
from prior month
94
Home Demand Index
from prior year
from prior year
105
Months of
Inventory
Inventory
3
Average daily inventory last month
5,314
Inventory sold
last month
last month
1,760
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 October 2023 period with data collected from the previous month.
Released: October 11, 2023
Reference ID: 1907
Philadelphia | October 2023
Home Demand Map (Zip Codes)
Buyer interest was in the Limited category in each of the Philadelphia Metro area counties in September. The Index was highest in Kent and Philadelphia counites and lowest in Gloucester and Mercer counties. Buyer interest was Slow in the Salem-Cumberland market area and Limited in Central Pennsylvania. Across the Greater Philadelphia area demand was in the Slow or Limited range in 92 percent of communities.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com