PHILADELPHIA RESIDENTIAL REAL ESTATE MARKET: SPRING 2024 AND BEYOND

By Emily Lucking, Esq.

 

If you are looking to buy or sell a house this year within the Greater Philadelphia region, you may wonder what to expect from the ever-evolving Philadelphia area real estate local market.

Depending on the region, your location and the type of property in question, this year’s market shifts may be in your favor.  

Declining Mortgage Interest Rates, Stable and Increased Asking Prices 

Buyers will be relieved to know that mortgage interest rates are expected to decline this year from the peaks of 2023. Although rates are not likely to reach pre-pandemic lows, experts anticipate borrowing rates to hover around 4.5-6%. These lower rates will improve home affordability, but with greater affordability comes the potential for increased competition for hot properties. Thus, buyers may need to make several offers on homes before one is accepted. Due to the demand for desirable homes, prices are likely to remain high and possibly climb a bit higher. 

 City of Philadelphia  

Recently, Philadelphia’s residential market has offered favorable conditions for buyers. Homes stay on the market longer, and at more affordable prices. The factors contributing to Philadelphia’s buyers’ market include: 

  • Last year’s relatively high mortgage rates 

  • The post-pandemic buyer desire for more space, both inside and out.  

  • The uptick in crime over the past few years

With the new mayor’s focus on cleaning up crime, Philadelphia is hopeful that it will attract new home buyers to take advantage of the city’s tax abatement program, relatively affordable big city living, and easy access along the Mid-Atlantic and northeast corridors.  

Philadelphia’s Surrounding Suburbs  

In contrast to the market in the city, Philadelphia’s surrounding suburbs will remain a favorable market for sellers. Desirably priced homes are unlikely to last long on the market, and sellers can take advantage of the relatively low housing inventory to keep prices high. Buyers looking to purchase a home in the suburbs should be prepared to make offers quickly, and should have financing lined up so that there is no holdup to putting in an offer on a home once they find a property they would like to buy.  

Buyers can hope that lower interest rates encourage more homeowners to sell, thus increasing inventory in the suburbs. 

Luxury Buying and Selling 

Luxury properties are bought and sold among a smaller buying pool. Thus, luxury properties often take longer to sell, especially when borrowing rates are higher. This pattern will likely continue both in suburban and urban areas.