Around the Block: 10/25/24

10/25/2024

Relevant Commentary, all information Philly (real estate and otherwise), Open Houses, Listings, Happenings, and More — by Jeff "City" Block

Q3 Philly Market Report

Hey Readers,

The Third Quarter Philly Market Report is out, and the biggest takeaway is clear: 2024 has shaped up to be virtually identical to 2023. Before I get to the stats, here are a few general observations about the Philly market--

In my 3rd Quarter 2023 Report newsletter, I stated:

“2023 has seen the most significant drop in the number of sales since the Great Recession, both nationwide and in Philadelphia. As per the recently released Compass Philly Q3 Market Report, this trend continues in the 3rd Quarter, where the number of residential sales in Philly was down 17.5% compared to the same period in 2022. Days on Market were up about 23%. So, fewer sales and a longer time to sell, how about prices–up 3% compared to Q3 2022.

“But I think we can glean some valuable information from these reports. The number of sales this year is down significantly. Homes are staying on the market longer. And prices overall are flat compared to 2022. Pricing is seemingly up slightly in some market segments (e.g., single-family homes) and down in others (e.g., condos and multi-units). Bear in mind that pricing was at or around all-time highs in 2022, so even if a home’s value is down slightly, a seller is still in a good position price-wise.”

In 2024, The Song Remains the Same. Check out these statistics for the City of Philadelphia as a whole (number of sales, Median Sales Price (MSP), and Days on Market (DOM)):

Sales Q3 2023—3,593

Sales Q3 2024—3,579

MSP Q3 2023--$265K

MSP Q3 2024--$270K

DOM Q3 2023—43

DOM Q3 2024—43

Wow!! That is some crazy high correlation!

And what did I predict last year going into 2024?

“No one knows what we can expect from the economy or real estate market in Q4 and into 2024. And if they say they do know, then they are totally guessing. But there are a few general statements that will probably play out — interest rates will likely stay elevated well into 2024 and perhaps into 2025. However, remember that 7% interest rates are historically not high at all. Whether real estate prices go up or down nationally, Philly is a slow-and-steady city that tends to see more moderate appreciation/depreciation. The city itself is in solid shape as a popular place to live, with a presumptive mayor-elect who is expected to be much more competent than the current mayor. Philly has its issues (like all cities), but it is a city that I firmly believe is on the upswing.”

So, how did this play out? Interest rates did stay (relatively) elevated well into 2024, fluctuated slightly, and are currently down slightly compared to last year. Pricing has stayed constant. Philly’s new mayor has certainly been better than the last one (admittedly, a very low bar, but objectively, she has been solid overall). Philly is absolutely a city on the upswing.

I would say that overall, the 2023/2024 Philly real estate market is average. Sales are down yet prices remain at all-time highs. Compared to 2021 and 2022 (record breaking years), the number of sales are way down, but you can’t ignore the pricing, which has stabilized at all-time highs.

Check out the entire Compass Philly Q3 Market Report to see the Q3 results for your specific neighborhood. And remember, due to very small sample sizes, the neighborhood statistics are more for fun rather than an indicator of a particular neighborhood’s real estate dynamics. And if you have questions about your neighborhood or particular property, please contact me directly. I always enjoy discussing Philly real estate.

Have a great weekend.

Thanks,

Jeff

Spotlight Property

Featured Listings

Chestnut Hill - pending

102 W Gravers Lane

3 BD | 2.5 BA | 2000 SF | $895,000

Point Breeze - JUST REDUCED

2418 Manton Street

3 BD | 2.5 BA | 2200 SF | $495,000

Roxborough - New Listing

371 Delmar Street #B

3 BD | 2.5 BA | 2658 SF | $625,000

Center City West

1811 Chestnut Street #501

2 BD | 2.5 BA | 1337 SF | $539,500

Graduate Hospital - pending

2403 Madison Square

2 BD | 1.5 BA | 840 SF | $475,000

University City - pending

422 S 44th Street

5 BD | 2.5 BA | 3040 SF | $875,000

Germantown

54 E Penn Street

3 BD | 2.5 BA | 2452 SF | $545,000

Cobbs Creek

6200 Ellsworth Street - Triplex

7 BD | 4 BA | 3015 SF | $549,000

Center City West - pending

1919 Chestnut Street #1520

2 BD | 1 BA | 1134 SF | $475,000

Graduate Hospital - NEW PRICE

1704 Webster Street

2 BD | 1 BA | 874 SF | $389,000

Lower Moyamensing -Just reduced

1116 Tree Street

2 BD | 2 BA | 1657 SF | $349,500

University City - PENDING

3513 Hamilton Street

0 BD | 0 BA | 3147 SF | $379,000

Kingsessing - Pending

5837 Hoffman Avenue

5 BD | 2 BA | 1640 SF | $225,000

Eastwick - pending

8427 Lyons Place

3 BD | 1.5 BA | 1440 SF | $249,500

Haddington - pending

131 N 55th Street

3 BD | 1 BA | 1209 SF | $165,000

Washington Square West

604 S Washington Square # 1113

Studio | 1 BA | 415 SF | $195,000

Know Someone Looking to Buy or Sell?

As always, please know that I’m humbled by and appreciative of your introductions and referrals. If you have a friend, colleague, or family member that is in need of Expert Real Estate Representation, please have them contact me.

Be assured, I will do my best to exceed their expectations! Thanks for taking the time to read this issue of Around the Block.

Some imagery in this e-newsletter was sourced via visitphilly.com and Canva.