Philadelphia PA Real Estate - Philadelphia PA Homes For Sale | Zillow (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.

The Philadelphia region is experiencing a seller's market, with active listings down 60% in February compared to pre-pandemic levels. This scarcity of available homes positions well-maintained and reasonably priced properties in a spot to capture significant buyer interest.

Philadelphia stands out as an excellent place to buy investment property for several reasons. The city's stable job market, diverse economy, and growing population create a consistent demand for housing.

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.

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.

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).

Here's how each month of the year ranked for the best time to sell a house. The highest-earning months are, in ranking order, May, June, April and March. Just over 18 million purchase transactions took place during this period, according to ATTOM.

Homes listed on Wednesdays tend to sell at a higher rate than those listed on any other day, partly due to the fact that many people enter contracts over the weekend. New potential buyers are continuing the search mid-week for the following weekend and trying to make serious offers to secure a home.

The pandemic-driven boost to prices should last until at least 2026, according to Bank of America. Housing prices are rapidly rising, and there's room for them to go even higher, according to Michael Gapen. The bank predicts that home prices will rise 4.5% in 2024 and 5% in 2025.

The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

How much money do you need to live in Philadelphia? ›

How much does a single person need to make to live comfortably in Philadelphia? The SmartAsset study found a single person in Philadelphia would need to make a salary of $92,726 per year, pre-tax, to live comfortably in the city. That breaks down to an hourly wage of $44.58.

Based on all homes sold in the last 12 months. Homes in Philadelphia have sold for 0.8% less than they did a year ago. Summary: The median home sold price in Philadelphia was $259,379 in July 2024, down 0.8% from last year, and the median price per square foot was $197.

Housing Market Forecast for 2024

“The market will move toward more of a balanced housing market in the second half of the year, but prospective home buyers will still face competition.” Though affordability obstacles persist for buyers, other indicators suggest that the market is tilting toward buyers.

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.

Predictions for 2024 and Beyond:

Rents are likely to stabilize in the latter half of 2024, with modest increases continuing in subsequent years. Tenant preferences will evolve, with an emphasis on affordability, flexibility, and amenities that enhance the living experience.

Among those are the city's gradual population growth after decades of decline, a property tax abatement implemented in 2000 that spurred new real estate investment, the market contraction following the 2006-08 national housing crash, and the subsequent years of low interest rates that attracted many new homebuyers.

Over the last 12 months, the CPI-U increased 3.6 percent, led by the index for all items less food and energy, up 4.0 percent largely due to rising shelter prices. (See chart 1 and table A.) Food prices also rose, up 2.8 percent. The energy index advanced 0.6 percent, in part due to higher prices for electricity.