December 2023 Report
Philadelphia Metro
Philadelphia | December 2023
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Philadelphia Metro area fell 3.1 percent in November to 63, a level consistent with Limited buyer demand. The Index has been in the Limited category for the past three months. Compared with one year earlier, the Index was 17.1 percent lower.
The Bright MLS | T3 Home Demand Index for entry-level single-family homes and entry-level condos rose marginally over the month. Demand for all other types of homes was lower compared with October. Buyer interest in luxury single-family homes fell the most with the Index down by 15 percent over the month. Demand in each condo segment was in the Slow range while buyer interest was Limited for each of the remaining types of homes. The months supply of entry-level and luxury condos fell in November while supply conditions eased somewhat for other types of homes. The months supply ranged from 1.8 months for mid-market single-family homes to 6.5 months for luxury condos.
Monthly Statistics for December 2023
Home Demand
Index
Index
63
(Limited)
Home Demand Index
from prior month
from prior month
65
Home Demand Index
from prior year
from prior year
76
Index change
from prior month
from prior month
-3.1%
Index change from
same time last year
same time last year
-17.1%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Home Demand Index | Historical Year-over-Year Comparison
Following a bounce in October, which partially reversed the significant September decline, the Index drifted lower in November. In addition to trending down since the middle of the year, demand remained below the pace of one year earlier. Although several forces have been at play in the market, higher mortgage rates and unfavorable inventory conditions for buyers continued to drive the level of market activity at year-end.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Home Demand Map
Demand for homes in the Philadelphia Metro area was mixed with Limited buyer interest in the New Jersey portion of the metro and in Chester and Philadelphia counties. Demand was Slow in the remaining metro counties. Buyer interest was in the Slow category in Central Pennsylvania and the Salem-Cumberland region as well. Among communities in the Greater Philadelphia area, demand was in the Slow or Limited range in three-quarters of ZIP codes, virtually unchanged from October.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Demand and Inventory by Home Type
The Bright MLS | T3 Home Demand Index for entry-level single-family homes and entry-level condos rose marginally over the month. Demand for all other types of homes was lower compared with October. Buyer interest in luxury single-family homes fell the most with the Index down by 15 percent over the month. Demand in each condo segment was in the Slow range while buyer interest was Limited for each of the remaining types of homes. The months supply of entry-level and luxury condos fell in November while supply conditions eased somewhat for other types of homes. The months supply ranged from 1.8 months for mid-market single-family homes to 6.5 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Single Family Home Below $315k
The Index for entry-level single-family homes rose 3 percent to 66 in November and was consistent with a Limited pace of buyer interest. Compared with one year earlier, the Index was 24 percent lower reflecting the significant drag on demand from reduced affordability and higher mortgage rates. The months supply, at 2.1, was up from 1.8 months in October.
Monthly Statistics for Single Family Home Below $315k
Home Demand
Index
Index
66
(Limited)
Home Demand Index
from prior month
from prior month
64
Home Demand Index
from prior year
from prior year
87
Months of
inventory
inventory
2.1
Average daily inventory last month
936
Inventory sold
last month
last month
451
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Single Family Home $315k - $700k
The Index for mid-market single-family homes was down 2 percent in November reflecting demand in the Limited category. The Index was 17 percent lower compared with one year earlier. The months supply, at 1.8, was marginally higher than the previous month and lower than any other segment of the metro market.
Monthly Statistics for Single Family Home $315k - $700k
Home Demand
Index
Index
59
(Limited)
Home Demand Index
from prior month
from prior month
60
Home Demand Index
from prior year
from prior year
71
Months of
Inventory
Inventory
1.8
Average daily inventory last month
2,571
Inventory sold
last month
last month
1,406
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Single Family Home Above $700k
The Bright MLS | T3 Home Demand Index for luxury single-family homes decreased 15 percent in November to 50, a level consistent with 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 3.3 months, was up from 2.9 in October.
Monthly Statistics for Single Family Home Above $700k
Home Demand
Index
Index
50
(Limited)
Home Demand Index
from prior month
from prior month
59
Home Demand Index
from prior year
from prior year
56
Months of
Inventory
Inventory
3.3
Average daily inventory last month
1,062
Inventory sold
last month
last month
323
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Condo Below $392k
Buyer interest in entry-level condos was somewhat higher in November according to the Bright MLS | T3 Home Demand Index. The Index, at 74, was up 4 percent and reflected a Slow pace of demand. There was a 2.8 months supply of homes available for sale, down marginally from October.
Monthly Statistics for Condo Below $392k
Home Demand
Index
Index
74
(Slow)
Home Demand Index
from prior month
from prior month
71
Home Demand Index
from prior year
from prior year
74
Months of
Inventory
Inventory
2.8
Average daily inventory last month
659
Inventory sold
last month
last month
239
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Condo Above $392k
Demand for luxury condos was lower in November, with the Index decreasing 9 percent over the month to 74, a level consistent with a Slow pace of buyer interest. Compared with one year earlier, the Index was 11 percent lower. The months supply, at 6.5 months, was down from 8 months in October.
Monthly Statistics for Condo Above $392k
Home Demand
Index
Index
74
(Slow)
Home Demand Index
from prior month
from prior month
81
Home Demand Index
from prior year
from prior year
83
Months of
Inventory
Inventory
6.5
Average daily inventory last month
310
Inventory sold
last month
last month
48
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Demand for townhouses was down marginally in November according to the Bright MLS | T3 Home Demand Index. At 69, the Index signaled a Limited pace of buyer interest. There was a 3.6 months supply of homes available for sale, up from 3.3 months in October.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
69
(Limited)
Home Demand Index
from prior month
from prior month
71
Home Demand Index
from prior year
from prior year
85
Months of
Inventory
Inventory
3.6
Average daily inventory last month
5,710
Inventory sold
last month
last month
1,578
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 2023 period with data collected from the previous month.
Released: December 11, 2023
Reference ID: 1943
Philadelphia | December 2023
Home Demand Map (Zip Codes)
Demand for homes in the Philadelphia Metro area was mixed with Limited buyer interest in the New Jersey portion of the metro and in Chester and Philadelphia counties. Demand was Slow in the remaining metro counties. Buyer interest was in the Slow category in Central Pennsylvania and the Salem-Cumberland region as well. Among communities in the Greater Philadelphia area, demand was in the Slow or Limited range in three-quarters of ZIP codes, virtually unchanged from October.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com