(Courtesy of Altos Research.)
The median list price in PHILADELPHIA, PA this week is $195,450. The 660 properties have been on the market for an average of 204 days.
Even though the days-on-market is trending higher, so is the Market Action Index at these inventory levels, providing a neutral outlook for the market.
Supply and Demand
The market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes.
The market has been on a downward trend recently and this week, while essentially flat, doesn’t break us out of that cycle.
Prices have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move from these current levels.
Price per Square Foot
Despite recently falling prices, the price per square foot has stayed reasonably flat. This implies that there’s a portion of the market being priced at a premium. You can investigate this condition in the quartile details.
Market Action Index
The PHILADELPHIA market is currently in the Buyer’s Advantage zone (below 30), though not strongly so. The 90-day Market Action Index stands this week at 24.20 so buyers should expect to find reasonable levels of selection.
Market Action Index per Quartile
Not surprisingly given the overall Market Action Index, all quartiles are in the Buyer’s Market zone with several months of inventory given the current rate of demand for homes in the quartile. Watch the quartile for changes before the overall market shifts. Often one end of the market (e.g. the low end) will improve and signal a strengthening market before the whole group changes.
Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Advantage zone (below 30) for a long period, prices are likely in for a downward correction.
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For more information about luxury single family homes, contact Mike McCann.