Pointing to pent up demand from both buyers and sellers, The National Association of Realtors ranked the Philly metro area #8 of the top 10 markets for strong growth in home sales in 2024.
Mortgage interest rates are expected to drop which should make sellers feel economically comfortable to move and buyers to be able to purchase a new home.
Compared to other markets, the Philadelphia region had twice as many properties that are considered affordable to first-time home buyers. Philly is unique in that 44% of homeowners have lived in their properties longer than the regional average of 17 years. Consequently, this population could choose to sell under positive market conditions, making more homes available for purchase.
The National Association of Realtors made its top-10 list by considering 10 factors for a successful next year. Within these factors, the Philadelphia area had a similar or higher rating:
- share of buyers who would return to the market if mortgage rates
drop to 6.5% - share of renters who can afford the median-priced home (which was $368,500 in the Philadelphia area in 2023)
- growth in home prices between summer 2022 and summer 2023
- share of owners who have been in their homes for longer than the
average time period - share of affordable listings that first-time buyers can afford
- drop in the share of workers working from home from 2021 to 2022
- job growth
- share of high-income millennial renters moving in from out-of-state
Philly also has a new administration committed to public safety and has created a sense of optimism that’s been missing since the start of the pandemic!
