The National Association of Realtors recently reported that contracts to buy existing homes fell 0.7 percent in a year to year comparison from July 2017 to July 2018. The organization also noticed that this marked the seventh straight month of year to year declines. Some see these statistics may be slightly skewed by the overheated – and now cooling – real estate markets in the West. One reason given for this cooling of the real estate markets is that prices have risen so far that fewer and fewer potential home buyers can qualify. Another reason for the rapid increase in home prices is the limited supply in many markets in the West.
While national home sales numbers have been falling, home prices have been rising. Home prices were up approximately 6 percent in June 2018, as compared to June 2017. However, all major regions of the country recorded declines in home sales over the past year ending in July 2018. The West led the group with a 5.8 percent annual decline, the Northeast was 2.3 percent lower, the Midwest was down 1.5 percent, and the South experienced a 0.9 percent drop.
Philadelphia’s housing market demonstrated stronger performance than the national numbers. For July 2018 the median closing price for a home in Philadelphia was $218,000 – a 12.4 percent increase from July’s 2017 price of $194,000. The July 2016 median closing price was $175,000. The supply of housing for sale was down 22 percent in July 2018 with only 2.8 months available. A lower supply number suggests more price increases into 2019.
“Overall homes are still affordable in Philadelphia. The average salary needed to buy a median priced home in Philadelphia is roughly $53,000, almost exactly the national average. This is far less than some cities such as Boston and Washington, D.C. It is about $10,000 less than Chicago and about $4,000 less than Baltimore,” mentioned Mr. Campbell.
Dr Cash Home Buyers
100 N 18th St Suite 300, Philadelphia, PA 19103