By Christina Briglia
Listen up, Philly! As your local real estate expert, I’m here to break down the latest trends in our vibrant market. We’re seeing some interesting shifts, and understanding these key metrics can help you navigate your next move, whether you’re buying, selling, or just curious.
Days on Market: A Look at Buyer Demand
The average days on market (DOM) is a crucial indicator of how quickly homes are selling. A lower DOM suggests strong buyer demand, while a higher DOM can indicate a slower market. Currently, Philadelphia is experiencing a moderate pace. We’re not seeing the same frenzy of homes selling in a weekend as we did a year or two ago, but well-priced, attractive properties are still moving relatively quickly.
Think of it this way: buyers are being a bit more discerning, but they’re still out there. If you’re a seller, this means preparing your home to shine is more important than ever. For buyers, it means you might have a little more breathing room, but shouldn’t delay if you find “the one.”
Average Sales Price: Stability with Growth
The average sales price in Philadelphia has seen continued stability, with a gradual upward trend. This isn’t the steep climb we witnessed during the peak of the pandemic, but rather a healthy, sustainable growth. This indicates a resilient market and continued desirability for our city.
For sellers, this is good news, as your investment is likely appreciating. For buyers, it means that while prices aren’t skyrocketing, they are still appreciating, making real estate a sound long-term investment in Philadelphia.
List Price to Sale Price Ratio: The Art of the Deal
The list price to sale price ratio tells us how close homes are selling to their original asking price. A ratio close to 100% (or even above!) indicates a strong seller’s market where homes are often selling at or above asking. A lower ratio suggests buyers have more negotiating power.
In Philadelphia right now, we’re seeing this ratio hover around a healthy equilibrium. It’s not uncommon to see homes sell slightly below asking, especially if they’ve been on the market for a bit. However, homes that are strategically priced from the start, and are in excellent condition, are often still commanding close to their asking price. This highlights the importance of working with an experienced agent to set the right price for your property.
Absorption Rate: Understanding Supply and Demand
The absorption rate is a key metric that tells us how long it would take to sell all the available homes on the market at the current rate of sales. It essentially measures the balance between supply and demand.
A low absorption rate (meaning fewer months of inventory) indicates a seller’s market, as there aren’t enough homes to meet buyer demand. A high absorption rate (more months of inventory) suggests a buyer’s market, with more homes available than buyers.
Philadelphia’s absorption rate is currently in a balanced territory. We’re seeing a healthy level of inventory, giving buyers more options than they’ve had in recent years, but not so much that it’s flooding the market. This “sweet spot” means neither buyers nor sellers have a dominant advantage, fostering a more equitable market for all.
What Does This Mean for You?
The Philadelphia real estate market remains dynamic and full of opportunity. Here’s my quick take:
Sellers: Don’t expect bidding wars on every property, but well-prepared, strategically priced homes are still in demand. Focus on presentation and curb appeal.
Buyers: You have more choices and potentially more negotiating power than a year ago, but don’t wait too long for the perfect home, as good opportunities still move quickly. Interest rates are always a factor, so staying informed is key.
The best advice in any market is to work with a local expert who understands the nuances of Philadelphia’s diverse neighborhoods. Whether you’re thinking of buying, selling, or just want to chat about the market, I’m always here to help!
Contact Christina today for your no-obligation consultation.
Disclaimer: This blog post provides a general overview of market trends and is not financial or real estate advice. Market conditions can change rapidly. Always consult with a qualified real estate professional and financial advisor for personalized guidance.