Confidence returns to residential real estate
The 2017 regional housing market finished strong
The residential real estate market in the 12-county Greater Philadelphia region continues to rebound.
Home sales across the area were up 7.7 percent in 2017, according to the Berkshire Hathaway HomeServices Fox & Roach Realtors’ HomExpert Market Report. The report also shows that average sales prices increased 2.5 percent across the region, to $271,636.
“The market is having a healthy recovery with the number of homes sold increasing by 18.9 percent since 2015, showing that home sales have gone up dramatically over the last three years,” said Steve Storti, chief marketing officer, Berkshire Hathaway HomeServices Fox & Roach, Realtors.
Storti added that inventory across the region is still down, adding, “confidence in the economy continues, supporting the desire to purchase homes going into 2018.”
According to the report, the monthly average inventory of homes available on the market for the region decreased 15.3 percent in 2017 to 28,703 compared to 33,876 at the end of 2016. The numbers indicate a steady drop in the monthly average inventory over a three-year period, according to a press release.
The average number of days a home remained on the market decreased from 69 days in 2016 to 59 in 2017, a decrease from 2015, when homes stayed on the market for an average of 72 days.
Among the report’s highlights:
• Chester County posted the highest average sale price in 2017 at $378,903, a 4.6 percent increase from 2016; followed by Bucks County ($345,737, up 4.8 percent); Montgomery County ($329,327, up 4.3 percent); Mercer County, N.J. ($323,051, down 2.9 percent); and Delaware County ($268,099, up 3.2 percent).
• Existing home sales increased across the region, with Philadelphia County posting the highest number of homes sold in 2017 at 17,036, a 5.5 percent increase compared to yearend 2016; followed by Montgomery County (11,330, up 2.4 percent); Bucks County (8,205, up 2.0 percent); Camden County, N.J. (7,681, up 16.9 percent); and Chester County (7,287, up 3.7 percent).
• The 12-county tri-state region sold a total of 47,730 single-family homes in 2017. Montgomery County posted the highest number of single-family houses sold in 2017 at 6,885, a 1.2 percent increase; followed by Camden County, N.J. with 5,880, a 17.8 percent increase. Chester County had 4,732 single-family houses sold in 2017, a 3.5 percent increase; while Delaware County had 3,947 single-family houses sold, a 2.3 percent increase.
• Inventory remained lower across the region in the fourth quarter of 2017, compared to the same period in 2016, with the number of houses for sale down by 18.2 percent. Delaware County posted the biggest decrease in monthly average inventory, declining by 24.9 percent. Montgomery County had a 20.3 percent decrease and Chester County’s inventory was down 10 percent.
• For the Main Line, homes sales increased to 3,233 homes sold in 2017, up 5.0 percent from 3,079 homes sold in 2016. Lower Merion had the most properties sold in 2017, with 924 a 7.9 percent increase from 2016. Haverford was next with 776 sold, a 6.6 percent jump from 2016. Main Line data includes Malvern, Tredyffrin, Willistown, Easttown, Haverford, Newtown, Radner, Narberth and Lower Merion.
• Pennsylvania led the tri-state region in highest average sale price in 2017 at $304,327 (up 5.6 percent); followed by Delaware at $230,130 (up 0.2 percent); and New Jersey, with $219,191 (down 2.8 percent).
• Pennsylvania also led the tri-state region in the number of homes sold in 2017 with 50,959 (up 3.9 percent); followed by New Jersey at 24,654 (up 15.1 percent); and Delaware at 9,685 (up 11.2 percent).
• New Jersey’s Salem County posted the lowest average sale price at $128,312, which was a 7.4 percent decrease from 2016 year-end.
For the report, the Greater Philadelphia region includes counties in southeastern Pennsylvania, southern New Jersey and Delaware. They are: Philadelphia, Bucks, Chester, Delaware, Montgomery, Burlington, Camden, Gloucester, Mercer, Salem, Kent and New Castle.