Philadelphia, PA Real Estate & Homes for Sale | realtor.com® (2024)

FAQs

Are home prices dropping in Philadelphia? ›

Philadelphia Housing Market Trends

In June 2024, Philadelphia home prices were up 3.7% compared to last year, selling for a median price of $280K. On average, homes in Philadelphia sell after 42 days on the market compared to 41 days last year. There were 1,295 homes sold in June this year, down from 1,523 last year.

Yes. This is the best time to buy a house in Pennsylvania. With the current trend in the PA housing market, you'll find better deals on your dream home during Q2 2024. As per Fannie Mae, mortgage rates may drop more in Q2 of 2024 due to economic changes, inflation, and central bank policy adjustments.

Current Inventory Levels

Philadelphia's current housing inventory is reflective of a market with supply dynamics that tend to favor sellers.

The best month to sell a house in Pennsylvania is June.

Last year, the average listing price for Pennsylvania homes in June was $244,783, which is $16,370 more than the annual average.

PENNSYLVANIA — Eleven Pennsylvania towns have made a list of the hottest 150 real estate markets in the nation, according to a new ranking from Realtor.com. Lancaster took home the state's highest ranking, at 21st in the nation with an 84.62 "hotness" score, according to the site.

Home sales in Philadelphia declined nearly 40% last year compared to the prior year, according to a new report from the Pew Charitable Trusts. In 2023, a total of 15,617 homes were sold — nearly 10,000 fewer than 2022, a banner year for home sales in Philadelphia.

It found that a single Philadelphia resident needs to make $92,726 yearly to live comfortably, which breaks down to a $44.58 hourly wage. For a pair of working adults with two children, the study found that a comfortable household income is a whopping $231,379 in Philadelphia.

Buy in November for a better price

The window between late fall and early winter is the best time for buyers on a budget. Keep in mind, fewer homes are for sale in the cold winter months and around the busy holiday season, so the selection of for-sale homes will be limited.

Pennsylvania's biggest city doesn't come with its largest price tag. In fact, buying a home in Philly will cost about $300 less per month than renting.

Philadelphia, PA housing market

In June 2024, the median listing home price in Philadelphia, PA was $284.9K, trending up 9.6% year-over-year. The median listing home price per square foot was $220. The median home sold price was $215K.

Does Philadelphia have a housing shortage? ›

Experts estimate that Philadelphia needs an additional 60,000 units of affordable housing.

One of the primary reasons for the surge in demand for properties in Philadelphia is the city's rapid economic growth. The job market has been booming, and unemployment levels are dropping. As a result, more people are looking to move to Philadelphia for work opportunities, which has driven the demand for housing up.

Real estate experts predict a continued housing shortage, and because they expect high buyer demand to keep pushing home prices up, 2024 may be an ideal time to sell. Experts also anticipate a leveling out of 2023's elevated mortgage rates, expecting rates to eventually settle around 6% – 7% in the spring.

Again, June and July are the best months to close your house sale quickly. During these months, homes spend an average 24-27 days on the market, which is 10-15 days less than the rest of the months. Fewer days on the market is considered an indicator of a seller's market.

All gains realized from selling, exchanging, or disposing of any type of property are taxed according to the Pennsylvania Personal Income Tax (PA PIT) system, meaning they are taxed as personal income. According to the PA-DoR's Personal Income Tax portal, Pennsylvania's personal income tax rate is a flat 3.07%.

The U.S. Census Bureau data indicates Philadelphia's population now stands at about 1.6 million residents, meaning a 1% drop occurred between July 2022 and July 2023. The data also shows that since April 2020, Philadelphia's population declined 3.3%, or by 53,251 residents.

Pennsylvania Housing Market Overview

In June 2024, home prices in Pennsylvania were up 6.2% compared to last year, selling for a median price. On average, the number of homes sold was down 11.2% year over year and there were 11,650 homes sold in June this year, down 13,139 homes sold in June last year.

Philadelphia faces a housing crisis, with 4,000 people experiencing homelessness, 40% of households cost burdened, and 22% living in poverty in 2022 (Office of Homeless Services, American Community Survey, 2018-2022).

It's a top-tier U.S. city known for its range of cultural, historical and recreational attractions - especially among East coast cities. Living in Philadelphia means having access to all the conveniences of a metropolitan city including public transportation, and all the charm of a small town.