The real estate market in Philadelphia is at a critical turning point as 2024 gets underway, influenced by both revolutionary urban projects and changing economic trends.
This article explores the complex mosaic of Philadelphia’s real estate scene, from the cobblestone streets of Old City to the developing neighborhoods on the rise, interpreting the signs that point to stability, expansion, or caution.
We navigate the market’s possible highs and lows with the help of our expert views and data-driven foresight, offering insightful information to investors, homeowners, and industry watchers alike.
Come along as we take a look into the crystal ball of Philadelphia’s real estate future, where innovation and history meet to create the neighborhoods and houses of the future.
Trends in the Housing Market
The real estate market in Philadelphia is described as “somewhat competitive.” While normal homes sell for about 3% less than the listed price and go into pending status in about 47 days, many homes draw several offers.
Conversely, homes that are in high demand could sell for nearly the asking price and go into pending status in roughly eighteen days.
At $235K in December 2023, Philadelphia’s median house price had dropped 2.9% from the year before. 52 days was the average amount of time properties were on the market, which is a little less than the 54 days it was the previous year.
Compared to 1,049 in December of last year, there were 1,067
more properties sold in December of this year.
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Neighborhood Perspectives
Brewerytown: This neighborhood is known for properties like the one that recently sold for $450,000 after spending 103 days on the market with no offers.
Lower Moyamensing: Listings in this competitive market indicate that a three-bedroom home recently sold for $239,000, 4% less than the asking price. For a full week, this property was listed for sale.
Northeast Philadelphia: An extremely popular neighborhood featuring properties like a four-bedroom that went for $374,100, 7% more than the asking price. This ad was only on the market for 38 days, so it sold swiftly.
Center City: It is regarded as the center of Philadelphia, features more expensive offerings, such as the two-bedroom home that was just sold for $575,000 after 91 days on the market. Nine percent less was the asking price for this property.
Germantown: A more reasonably priced area with properties like the three-bedroom that just went for $155,000, the asking amount, after 91 days on the market.
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Trends in Rental Prices
Similar to other major US cities, rent prices have fluctuated in Philadelphia. The average rent for a one-bedroom apartment in Upper North Philadelphia is $925, a 61% annual increase. This neighborhood stands out.
One-bedroom alternatives in neighborhoods like University City and Rittenhouse Square experienced a slight increase of 8%, coming up to $2,386 and $2,200, respectively. In Lower North and Brewerytown, on the other hand, where average 1-bedroom rents have decreased by 17% to $1,450, there are more inexpensive possibilities.
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Budget-friendly Neighborhoods
Finding the most economical areas is essential for Philadelphia residents who value living on a tight budget. The reasonably priced housing options in Cedar Park, Germantown, and Mantua offer an alternative to the average one-bedroom rent of $1,771 in the metropolis.
To Conclude
In 2024, Philadelphia’s real estate market offers an intriguing blend of caution and opportunity. Deals are available for both buyers and renters in an overall declining market, especially in neighborhoods like Lower North and Brewerytown. Bidding wars persist, though, especially in coveted regions like Northeast Philadelphia.
A possible decline in mortgage rates is expected to drive a moderate gain in sales and property values throughout the year, according to experts. The location is crucial as usual.
For anyone planning to buy, sell, or rent in Philadelphia, knowing which neighborhoods to focus on will be essential to navigating the city’s always changing real estate market.
You can locate the ideal spot to call home in the City of Brotherly Love by making educated judgments based on your grasp of market trends and local dynamics.
