Bright MLS put out their monthly home demand report for November 2022 and the results show that higher priced homes are highest in demand. There could be a couple reasons for this, but it likely comes down to affordability. There are several key takeaways from this report, let’s break it down.
Home Demand For All Types of Homes Decreased From the Previous Month
Home demand for all types of homes in Philadelphia is slowly decreasing month over month. The smallest decrease in demand was for lower-priced single family homes. all other categories including condos and townhouses had a larger decrease in demand. Another thing to note is that the month’s supply increased for every type of home except for higher priced condos.
Home demand is also down compared to this time last year in 2021.
Mid-Priced Single Family Homes Have Slow Demand and Low Inventory
Demand for single family homes between $195k - $485k in Philadelphia is down 11 percent from the previous month and down 28 percent from one year ago. The months supply of homes rose to 1.7 months, but that’s lower than any other type of home in the Philly metro area according to Bright MLS data. Another thing to keep in mind is that affordability comes into play here. As the interest rates were increasing over the past few months, buyers buying power decreased with it. Some buyers felt like they were getting priced out of the market and many of them are waiting until rates decrease to start actively looking again. That could be playing into why home demand is much lower in this category.
Higher Priced Single Family Homes have the Highest Demand
Singles family homes above $485k are the highest in demand in the Philadelphia metro area in November 2022. Although the demand is slightly down from the previous month and the previous year, it’s a a much smaller decrease than any other type of home. Inventory is up with the months of supply rising to 2.4 months from 2 months in September. According to Bright MLS, that’s likely because of a decrease in sales and largely unchanged number of listings on the market. Although interest rates have increased, this is a great time to buy for people in this price range. There is less competition and sellers are getting more desperate and are often willing to make concessions, which could save you a lot of money at the closing table.
Condos Below $360K Have Slow Demand
Condos Above $360K Have Moderate Demand
Townhouses of All Prices Have Steady Demand
If you have further questions or are interested in learning more about your buying options in Philadelphia, reach out to us!