Spring is in the air and so is the buzz in the Philly real estate market! 🌸🏡 Whether you’re looking to buy, sell, or just stay in the know, we’ve got you covered with the latest market trends, mortgage rate updates, and local happenings. This newsletter is your go-to guide for all things real estate in the City of Brotherly Love & Sisterly Affection. So, grab your shamrock shake 🍀 and let’s dive in!
RIP IKEA Boat, you were there for us through it all
📢 MARKET UPDATE: PHILLY SPRING SELLING SEASON IS HERE!
Philadelphia’s Market Highlights:Ranking: Philadelphia has climbed to the 5th hottest housing market in the nation for 2025, up six spots from last year. This surge is attributed to the city’s affordability and robust job market. Inventory Levels: Despite the demand, housing inventory remains a challenge, sitting at 46% below pre-pandemic levels, though there’s been a modest 5.5% increase from last year.
National Trends: Existing-Home Sales: Nationally, existing-home sales fell by 4.9% month-over-month to a seasonally adjusted rate of 4.08 million in January 2025. However, there’s a silver lining with a 2.0% year-over-year improvement. Pending Home Sales: Contracts signed to purchase homes decreased by 4.6% in January 2025 compared to the previous month. The South experienced the most significant drop, while the Northeast saw a modest gain.
Local Rental Market: Rental Prices: Philadelphia’s rental market has seen a slight dip. The median one-bedroom rent was $1,520 in December 2024, marking a 1.3% decrease from the previous year. This decline is largely due to a surge in new apartment units, with over 13,000 added in 2024. Regional Comparison: While Philly’s rents have softened, nearby areas like Trenton, NJ, have experienced significant increases, with one-bedroom rents rising nearly 27% in December 2024.
Mortgage Rates & Affordability: Mortgage Rates: Despite multiple short-term interest rate cuts by the Federal Reserve, mortgage rates have remained steady over recent months. Affordability: Elevated home prices combined with stable mortgage rates continue to pose challenges for affordability.
What This Means for You: Sellers: With limited inventory and Philadelphia’s rising market status, it’s an opportune time to list your property. Buyers: While competition is stiff, stable mortgage rates and a slight softening in rental prices might offer some relief. Renters: Now could be a good time to negotiate favorable lease terms, given the recent dip in rental prices.
