August 2023 Report
Philadelphia Metro
Philadelphia | August 2023
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Philadelphia Metro area fell 10.5 percent in July to 85, a level consistent with a Slow pace of buyer demand. The Index was in the Steady category in June and 21.3 percent lower than one year earlier.
The Bright MLS | T3 Home Demand Index for all types of homes decreased in July. Demand for luxury single-family homes fell 20 percent followed by a 13 percent decline for luxury condos. The Index was approximately 10 percent lower for each of the remaining types of homes. Buyer interest in luxury condos and townhouses was in the Steady category while demand for all other types of homes was in the Slow range. The months supply of homes for sale was higher for each type of home, reflecting a lower level of home sales along with little change in the number of listings in July. The months supply ranged from 1.3 months for mid-market single-family homes to 5.6 months for luxury condos. Entry-level and mid-market single-family homes each had less than a two-month supply in July.
Monthly Statistics for August 2023
Home Demand
Index
Index
85
(Slow)
Home Demand Index
from prior month
from prior month
95
Home Demand Index
from prior year
from prior year
108
Index change
from prior month
from prior month
-10.5%
Index change from
same time last year
same time last year
-21.3%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Home Demand Index | Historical Year-over-Year Comparison
Demand for homes fell in July as the cumulative impact of low inventory, higher mortgage rates and resilient home prices softened buyer interest in Philadelphia Metro area homes. Between April and June, the Index changed little from month to month and remained in the Steady category before the drop in July.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Home Demand Map
Demand for homes was strongest in Bucks and Kent counties with a Steady pace of buyer interest. Activity was weakest in the New Jersey counties of Burlington, Gloucester and Mercer, each with Limited buyer demand. Buyer interest was Moderate in the Salem-Cumberland market area and Steady in Central Pennsylvania. In the Greater Philadelphia area, demand in slightly more than one-quarter of ZIP codes was in the High or Moderate range, down from about one-third of communities in June. Demand in just over half of ZIP codes was in the Slow or Limited category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Demand and Inventory by Home Type
The Bright MLS | T3 Home Demand Index for all types of homes decreased in July. Demand for luxury single-family homes fell 20 percent followed by a 13 percent decline for luxury condos. The Index was approximately 10 percent lower for each of the remaining types of homes. Buyer interest in luxury condos and townhouses was in the Steady category while demand for all other types of homes was in the Slow range. The months supply of homes for sale was higher for each type of home, reflecting a lower level of home sales along with little change in the number of listings in July. The months supply ranged from 1.3 months for mid-market single-family homes to 5.6 months for luxury condos. Entry-level and mid-market single-family homes each had less than a two-month supply in July.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Single Family Home Below $300k
Demand for entry-level single-family homes was lower in July according to the Bright MLS | T3 Home Demand Index. The Index fell 10 percent over the month to 82 reflecting a Slow pace of buyer activity. Compared with one year earlier, the Index was 20 percent lower. The months supply of homes for sales rose to 1.7 months from 1.3 months in June.
Monthly Statistics for Single Family Home Below $300k
Home Demand
Index
Index
82
(Slow)
Home Demand Index
from prior month
from prior month
91
Home Demand Index
from prior year
from prior year
102
Months of
inventory
inventory
1.7
Average daily inventory last month
843
Inventory sold
last month
last month
494
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Single Family Home $300k - $680k
Buyer interest in mid-market single-family homes remained in the Slow category although the Index did decrease 10 percent to 78. The Index was 28 percent lower than one year earlier, a larger gap compared with the year before than any other segment of the Philadelphia Metro area market. The months supply rose to 1.3 months from 1.1 months and was lower than any other type of home.
Monthly Statistics for Single Family Home $300k - $680k
Home Demand
Index
Index
78
(Slow)
Home Demand Index
from prior month
from prior month
87
Home Demand Index
from prior year
from prior year
109
Months of
Inventory
Inventory
1.3
Average daily inventory last month
2,216
Inventory sold
last month
last month
1,659
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Single Family Home Above $680k
The Bright MLS | T3 Home Demand Index for luxury single-family homes fell 20 percent in July, a larger monthly decrease than any other type of home. The Index, at 78, reflected a Slow pace of buyer activity, down from Steady demand in June. There was a two-month supply of homes, up from 1.7 months in June.
Monthly Statistics for Single Family Home Above $680k
Home Demand
Index
Index
78
(Slow)
Home Demand Index
from prior month
from prior month
98
Home Demand Index
from prior year
from prior year
106
Months of
Inventory
Inventory
2
Average daily inventory last month
1,068
Inventory sold
last month
last month
526
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Condo Below $385k
Buyer interest in entry-level condos was modestly lower in July with the Index falling 9 percent to 83, a level consistent with Slow demand. The Index was also 23 percent lower than one year earlier. There was a 2.5 months supply of homes for sale, up marginally from June.
Monthly Statistics for Condo Below $385k
Home Demand
Index
Index
83
(Slow)
Home Demand Index
from prior month
from prior month
91
Home Demand Index
from prior year
from prior year
108
Months of
Inventory
Inventory
2.5
Average daily inventory last month
597
Inventory sold
last month
last month
240
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Condo Above $385k
The Index for luxury condos was 13 percent lower in July compared with the month before. Buyer interest retreated from Moderate to Steady. This segment of the Philadelphia Metro area market was the only one where the July Index exceeded the year-earlier level, confirming the solid demand for luxury condos. The months supply rose to 5.6 months from 3.9 months in June.
Monthly Statistics for Condo Above $385k
Home Demand
Index
Index
109
(Steady)
Home Demand Index
from prior month
from prior month
125
Home Demand Index
from prior year
from prior year
104
Months of
Inventory
Inventory
5.6
Average daily inventory last month
298
Inventory sold
last month
last month
53
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The Index for townhouses fell 10 percent in July to 104 but continued to reflect a Steady pace of demand. The months supply of homes rose to 2.8 months from 2.5 months mostly due to a decrease in sales and only a small decrease in the number of listings.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
94
(Steady)
Home Demand Index
from prior month
from prior month
104
Home Demand Index
from prior year
from prior year
112
Months of
Inventory
Inventory
2.8
Average daily inventory last month
5,288
Inventory sold
last month
last month
1,919
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 August 2023 period with data collected from the previous month.
Released: August 10, 2023
Reference ID: 1876
Philadelphia | August 2023
Home Demand Map (Zip Codes)
Demand for homes was strongest in Bucks and Kent counties with a Steady pace of buyer interest. Activity was weakest in the New Jersey counties of Burlington, Gloucester and Mercer, each with Limited buyer demand. Buyer interest was Moderate in the Salem-Cumberland market area and Steady in Central Pennsylvania. In the Greater Philadelphia area, demand in slightly more than one-quarter of ZIP codes was in the High or Moderate range, down from about one-third of communities in June. Demand in just over half of ZIP codes was in the Slow or Limited category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com