LOS ANGELES (AP) — The spring homebuying season is off to a sluggish start as home shoppers contend with elevated mortgage rates and rising prices.
Sales of previously occupied U.S. homes fell 4.3% in March from the previous month to a seasonally adjusted annual rate of 4.19 million, the National Association of Realtors said Thursday. That’s the first monthly decline in sales since December and follows a nearly 10% monthly sales jump in February.
Existing home sales also fell 3.7% compared with March last year. The latest sales still came in slightly higher than the 4.16 million pace economists were expecting, according to FactSet.
A modest pullback in mortgage rates early this year helped lift home sales in January and February, but rates mostly ticked up in February and March, when many of the home sales that were finalized last month would have taken place.
AP correspondent Shelley Adler reports on the spring homebuying season.
Mortgage rates have risen the past three weeks, with the average rate on a 30-year mortgage moving this week above 7% to its highest level since late November, mortgage buyer Freddie Mac said Thursday.
The trend is a setback for home shoppers this spring homebuying season, traditionally the housing market’s busiest time of the year.
“Home sales essentially remain stuck because (the) mortgage rate has been stable and inventory is not really rising,” said Lawrence Yun, the NAR’s chief economist.
Despite the pullback in sales, the national median home sales price climbed 4.8% from a year earlier to $393,500. That’s the highest median sales price for any March on records going back to 1999 and marks the ninth month in a row that prices have risen compared to a year earlier.
The latest surge in prices reflects the heightened competition many home shoppers are facing. Consider, 60% of homes purchased in March sold within less than a month of hitting the market. And 29% of homes sold above their initial list price, up from 28% in March last year, Yun said.
“Inventory is simply not there,” he said.
While the supply of homes on the market remains below the historical average, the typical increase in homes for sale that happens ahead of the spring homebuying season gave home shoppers a wider selection of properties to choose from.
At the end of last month, there were 1.11 million unsold homes on the market, a 4.7% increase from February and up 14.4% from a year earlier, the NAR said. That’s still well short of the 1.7 million homes on the market in March 2019, before the pandemic.
The available inventory at the end of last month amounted to a 3.2-month supply, going by the current sales pace. That’s up from a 2.9-month supply in February and a 2.7-month supply in March last year. In a more balanced market between buyers and sellers, there is a 4- to 5-month supply.
That shortage of homes on the market means home sellers generally having an edge on buyers, especially those vying for the most affordable homes, which often fetch multiple offers.
The U.S. housing market is coming off a deep, 2-year sales slump triggered by a sharp rise in mortgage rates and a dearth of homes on the market. Sales of previously occupied U.S. homes sank to a nearly 30-year low last year, tumbling 18.7% from 2022 as the average rate on a 30-year mortgage surged to a 23-year high of 7.79%, according to Freddie Mac.
The average rate on a 30-year mortgage got as low as 6.67% in mid January, but has been creeping higher, reaching 7.1% this week. When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford.
Mortgage rates have mostly drifted higher in recent weeks as stronger-than-expected reports on employment and inflation stoked doubt among bond investors over how soon the Federal Reserve will move to lower its benchmark interest rate.
Home loan borrowing rates are influenced by several factors, including how the bond market reacts to the Fed’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The yield on the 10-year Treasury jumped to around 4.66% on Tuesday — its highest level since early November — after top officials at the Federal Reserve suggested the central bank may hold its main interest steady for a while. The central bank wants to get more confidence that inflation is sustainably heading toward its target of 2%.
Many economists still expect that mortgage rates will ease modestly this year, which could give homebuyers who can’t afford to pay all cash for a home more purchasing power.
“The 30-year-fixed mortgage rate could rise for few months to maybe even 7.5% before settling back down to 6.5% by the end of the year,” Yun said. In January, NAR forecast the average rate would drop to 6.1% by year’s end.
Economists at Realtor.com also project that the rate could average 6.5% by the end of this year.
For now, first-time homebuyers who don’t have any home equity to put toward their down payment continue to have a tough time getting into the housing market, though they accounted for 32% of all homes sold last month, an increase from 26% in February and 28% in March last year. That’s still well short of the 40% of sales they’ve accounted for historically.
Prospective homebuyers are facing competition from buyers who can afford to buy a home in cash. Some 28% of homes sold last month were purchased entirely with cash, down from 33% in February, but up from 27% a year ago, the NAR said.
Daily average mortgage rates jumped to their highest level since last November after last week’s disappointing inflation report
SEATTLE, April 18, 2024–(BUSINESS WIRE)–(NASDAQ: RDFN) —The median U.S. home-sale price increased 5% from a year earlier during the four weeks ending April 14, bringing it to $380,250—just $3,095 shy of June 2022’s all-time high. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
The average daily mortgage rate this week surpassed 7.4%, the highest level since last November, after a hotter-than-expected inflation report and the Fed’s confirmation that interest-rate cuts will be delayed. The combination of high mortgage rates and prices have brought homebuyers’ median monthly housing payment to a record $2,775, up 11% year over year.
There are signals that buyers are out there touring homes despite rising rates. Mortgage-purchase applications are up 5% week over week, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is near its highest level in seven months. Chen Zhao, Redfin’s economic research lead, said some house hunters are hoping to buy now because they’re concerned rates could rise more, and others have grown accustomed to elevated rates and pushed down their home-price budget accordingly.
“Home sales are slower than usual, but there are still people buying and selling because if not now, when?” said Connie Durnal, a Redfin Premier agent in Dallas. “I’ve had a few prospective buyers touring homes for the last several years, since mortgage rates started going up, and they wish they would have bought last year because prices and rates are even higher now. My advice to them: If you can afford to and you find a house you love, buy now. There’s no guarantee that rates will come down soon.”
For more of Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.
Leading indicators
Indicators of homebuying demand and activity
Value (if applicable)
Recent change
Year-over-year change
Source
Daily average 30-year fixed mortgage rate
7.41% (April 17)
Up from 7% one month earlier; highest level since November 2023
Increased 5% from a week earlier (as of week ending April 12)
Down 10%
Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)
Up 8% from a month earlier (as of week ending April 14)
Down 11%
Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Touring activity
Up 33% from the start of the year (as of April 14)
At this time last year, it was up 23% from the start of 2023
ShowingTime, a home touring technology company
Google searches for “home for sale”
Unchanged from a month earlier (as of April 14)
Down 17%
Google Trends
Key housing-market data
U.S. highlights: Four weeks ending April 14, 2024
Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
Four weeks ending April 14, 2024
Year-over-year change
Notes
Median sale price
$380,250
4.7%
Median asking price
$413,225
6.4%
Biggest increase since Oct. 2022; all-time high
Median monthly mortgage payment
$2,775 at a 6.88% mortgage rate
10.6%
All-time high
Pending sales
86,086
-2.3%
New listings
93,332
10.8%
Active listings
832,748
9.6%
Months of supply
3.3 months
+0.4 pts.
4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.
Share of homes off market in two weeks
42.6%
Down from 44%
Median days on market
35
-1 day
Share of homes sold above list price
29.2%
Essentially unchanged
Share of homes with a price drop
5.9%
+1.6 pts.
Average sale-to-list price ratio
99.2%
+0.2 pts.
Metro-level highlights: Four weeks ending April 14, 2024
Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
Metros with biggest year-over-year increases
Metros with biggest year-over-year decreases
Notes
Median sale price
Anaheim, CA (24.8%)
Providence, RI (14.6%)
Nassau County, NY (14.3%)
West Palm Beach, FL (13.5%)
New Brunswick, NJ (13.1%)
San Antonio, TX (-1%)
Declined in just 1 metro
Pending sales
San Jose, CA (25.6%)
San Francisco (11.2%)
Oakland, CA (7.1%)
Columbus, OH (6.7%)
Seattle (6.4%)
Nassau County, NY (-14.9%)
Atlanta (-13.6%)
Houston (-11.6%)
Riverside, CA (-10.8%)
Fort Lauderdale, FL (-10%)
Increased in 14 metros
New listings
San Jose, CA (46.6%)
Sacramento, CA (27.6%)
Phoenix (27.4%)
Jacksonville, FL (27.2%)
Dallas (22.9%)
Newark, NJ (-12.4%)
Providence, RI (-6.3%)
Milwaukee (-4.6%)
Chicago (-4.5%)
Detroit (-3.1%)
Declined in 9 metros
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-mortgage-rates-increase
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email [email protected]. To view Redfin’s press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240418348073/en/
Buying a home can be exciting, exhausting and, no matter how smoothly the process may go, one of the most stressful things you can do in life. Not having enough money to adequately finance a purchase makes it all the more daunting. Fortunately, there are first-time homebuyer programs available in every state, making it easier for many people to access the resources they need to buy their new home, and to feel more secure through the whole process.
Keep in mind that first-time homebuyers don’t actually have to be buying their first home. A first-time homebuyer is defined as anyone who hasn’t had an ownership interest in a primary home in the past three years.
The U.S. Department of Housing and Urban Development (HUD) also includes in its list of qualified homebuyers:
• A single parent who has only owned a home with a partner while married
• A displaced homemaker who has only owned a home with a spouse
• Someone who has owned a principal residence not permanently affixed to a permanent foundation
• Someone who has only owned a property that wasn’t in compliance with state, local, or model building codes
Here are the homebuyer programs that qualified first-time buyers have available to them in the Northeast:
Maine
Thinking of buying a home in the land of lobster and lighthouses? You’ll want to learn about the market and assess your financial situation before you start searching for a home mortgage loan. (A guide to the different types of mortgage loans can help.)
The scoop on the Main market: Prices in the Pine Tree State were up 5.7% in February 2024 when compared to the prior year, with homes selling for a median of $360,200, according to Redfin. The three most competitive cities for homebuyers were Standish, South Berwich, and Gray.
💡 Learn about Maine first-time homebuyer programs
New Hampshire
The housing market in the Granite State is hot. From February 2023 to February 2024, home prices rose 12.5% to an average sale price of $447,400, according to Redfin. And 41.8% of the homes sold above their list price. Still, there are good opportunities for the first-time buyer in the state, and there are first-time homebuyer assistance programs to help you reach your homeowning goal.
💡 Learn about New Hampshire first-time homebuyer programs
Vermont
The Green Mountain State is paradise for outdoorsy types with forests, lakes, and mountains. No wonder then that the housing market has heated up: The number of homes sold increased 14.2% between February 2023 and 2024. Prices were up 6.5% as well, according to Redfin.
Homebuyers may need help to afford a home with the median price here hitting $361,300. Fortunately, the state has several programs to offer.
💡 Learn about Vermont first-time homebuyer programs
Massachusetts
Glorious New England scenery, a rich history, and diverse cultural and educational opportunities are just some of the things Massachusetts has to offer residents. It’s no wonder that home prices here outpace the national average, or that they are rising. Prices in Massachusetts were up 9.9% in the year ending February 2024, Redfin reports. The median sale price in the state is now $576,900.
At the same time, the median number of days a home stays on the market has dropped by 5 year-over-year, an indicator that the market is warming. Still, there are plenty of opportunities for the first-time homebuyer in Massachusetts.
💡 Learn about Massachusetts first-time homebuyer programs
Rhode Island
This small state is big on charm: Rhode Island’s miles of coastline offer beautiful beaches and picturesque inlets, and you’ll also find dynamic cities and rural small towns here. There’s a lot for the first-time homebuyer in Rhode Island to get excited about. But prices here are well above the national average of $342,941. The average property value is $438,711, up 8.3% year over year, according to Zillow. Wondering what a down payment would look like on a given property price? Use a mortgage down payment calculator to do the math.
💡 Learn about Rhode Island first-time homebuyer programs
Connecticut
You’re looking at a competitive market in the Constitution State: In February 2024, home prices in Connecticut were up 13.2% year-over-year. The median price of a Nutmeg State home is $375,300, according to Redfin, and the number of days a property stays on the market is declining. Fortunately you can still find affordable homes in Torrington and New Britain, among other affordable places in Connecticut.
💡 Learn about Connecticut first-time homebuyer programs
New York
The housing market in New York state can be challenging, especially for first-time buyers. Home prices in the Empire State in January 2024 were up 6.3% over the prior year, with a median sale price of $518,800. The number of days on the market dropped as well. A stunning 37% of homes sold above their listing price.
💡 Learn about New York first-time homebuyer programs
New Jersey
The Garden State saw record real estate sales in some areas in recent years as city dwellers fled to the suburbs. In the year ending February 2024, home prices in New Jersey were up 14.5% over the prior year, and the median sales price was $479,100. The median days on the market dropped 15 year-over-year to 46. Buyers in New Jersey need to prepare themselves to compete in this market.
💡 Learn about New Jersey first-time homebuyer programs
Pennsylvania
Thinking of buying a home in Pennsylvania? Prices rose 6.6% from January 2023 to January 2024, to a median of $264,700, Redfin reported. It’s a seller’s market here, so you may have to compete to get the home you want, especially in cities like New Castle (home prices were up more than 31% in a year) and Mechanicsburg (up 55.5%). Harrisburg and Lancaster ranked as some of the best affordable places to live in Pennsylvania.
💡 Learn about Pennsylvania first-time homebuyer programs
The Takeaway
Qualifying first-time homebuyers have many options available to them in the Northeast, including down payment assistance. If you’re looking to buy your first home and aren’t sure how to get started, researching homebuyer programs is a great place to start. Once you know what kind of assistance you may qualify for, it’s a good idea to estimate just how much house you can really afford using a home affordability calculator.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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In addition, we can see the price reductions ticking up each week. They aren’t at a scary level, people are buying homes, but it’s notably softer on pricing than last year at this time.
Mortgage rates seem to have finally settled down. The Fed met last week and we escaped dramatic changes in the markets. I was worried that we might come out of that meeting with a spike in mortgage rates but that didn’t materialize so we got lucky.
I like to point out that consumers are more sensitive to changes in mortgage rates than to the absolute levels, and since rates are now basically unchanged for the month, just easing down from the early March peak of 7.2%, sellers and buyers are tip-toeing back into the market.
As a result, we continue to see the signals that home sales volume will grow this year and prices will be mostly flat. The price appreciation signals last year were stronger than they are now.
Housing inventory
The available inventory of unsold homes continued to climb last week.
There are now 513,000 single family homes unsold on the market.
That’s 1.1% more than last week and 24% more than a year ago.
Last year, inventory was still declining in March. Now it’s on the rise.
Inventory will cross over 2020 levels by July. We’ll finish the year with over 600,000 homes on the market unless rates reverse and fall quickly.
Three takeaways from the inventory data now:
1. Growing inventory this year means more sales can happen. More sellers means more sales will happen.
2. Year-over-year inventory growth points to weaker demand and is one of the signals that home prices won’t climb this year. We currently have 24% more homes on the market than a year ago.
3. The longer mortgage rates stay higher, the more inventory will grow closer to the old levels. If you’re a homebuyer and you’re waiting for mortgage rates to fall before you swoop in for a deal, recognize that even slightly lower rates will spur demand more than supply so inventory will start falling and selection and competition will be worse.
New listings
Each week this spring we’ve been tracking the new listings volume. Last week we saw just over 60,000 new listings added to the inventory with another 17,000 new listings / immediate sales. In total, new listings data is 14% more than last year. April is looking good for home sales growth.
A year with 5.5 to 6 million home sales would need probably 80,000 new listings of single family homes right now. And we have 60,000, so there simply aren’t enough homes for sale to hit the big sales numbers, but the lid is being lifted. We can see obvious growth.
Pendings
As supply increases, the rate of sales is starting to pick up compared to a year ago. We can measure home sales in real time by tracking all the homes that moved to contract pending status this week. These “pendings” aren’t yet sold. They’ll spend 30 or 40 days in contract and the sales will mostly close in April or May.
There were 67,000 new contracts for single family homes this week compared to only 62,000 in the same week last year. There were another 15,000 condos into contract. This annualizes to only 4.3 million home sales, without any seasonal adjustment. So obviously the rate of sales is still pretty slow, which makes sense given the high mortgage rates. But the sales rate is climbing. The rate of new contracts is 8% more than last year but still 15% fewer than March of 2022, when buyers were desperately trying to get their deals done as rates were rising.
It looks like April will see decent home sales growth over 2023 but won’t overtake 2022 sales volumes until after July of this year. July of 2022 was when supply and demand fell precipitously. If mortgage rates stay stabilized in the upper 6s, these trends look durable to me.
Home prices
Last week, all the current price measures actually had pretty healthy gains. When we look at all the homes on the market, the median price is now $439,000. That is up a fraction this week and just a little bit higher than last year. Home prices climb this time of year before peaking in June as the best inventory, the most new listings, and the best demand is in the market. This week’s price increase is right in the normal range for the end of March.
The price of new listings took a healthy jump this week, up 1% to $424,900. That’s nearly 4% higher than a year ago. It’s also to be expected that the price of new listings each week in the spring lurch higher. There is no signal of big home price changes in this leading indicator, but it’s nice that this move is up.
Four years ago in March 2022, we were at the start of the pandemic lockdown and we could see the price of the new listings drop very quickly. That price decline only last for three weeks though. And the price of the new listings was one of the important factors that showed us very quickly how there would be no housing crash as a result of the crisis.
The price of the homes going into contract across the country are holding up but also not accelerating. The median price of the new contracts this week was $389,900 — that’s up a fraction from last week and 4% more than a year ago. Home prices peaked in May of 2022 and didn’t surpass that during last year’s spring season. I expect we’ll hit new all-time highs for home prices in the next month or so, assuming these current trends hold.
Price reductions
Most of the signals in the data last week were pretty optimistic. If there is one factor to temper than optimism, it’s the price reductions. The percent of homes on the market with price cuts from their original list price ticked up to 31.4% this week. There are more homes on the market now that have felt the need to reduce asking price than there were a year ago. Last year’s market strength in Q1 and Q2 led to 5% home-price growth for the full year of 2023. We have less strength in pricing now than we did last year.
While price reductions are in the “normal” range, they are higher now than any March in many years. There are more sellers now who have reduced the asking prices on their homes than in any March in over a decade. This last decade was a very strong one for homebuyer demand, so we haven’t seen a “normal” market in a very long time.
This is a signal to pay attention to. It’s hard to see how home prices will grow nationally this year under these circumstances. We can see buyers in the market, but there is no signal of them pushing home prices higher. Sellers who over-price are being forced to reduce.
In March 2022, there were still very few overall homes with price reductions, but that was changing rapidly. The slope started to climb very quickly, especially in April and May of that year. The number peaked in November 2022 with 43% of the homes on the market needing price cuts. That November peak corresponded to home sales price declines four to six months later. That’s why this data is worth watching so closely: These price cuts tell us about demand now, which turns into sales several months down the road.
We can see homebuyers are very sensitive to mortgage rate moves. We can see the price reductions data adjust exactly in the moments that mortgage rates jump higher.
As we started 2024, the signals in the U.S. real estate market were for inventory growth, sales growth and home-price growth across the U.S. At the time, I observed that even if mortgage rates stayed flat, the momentum seemed to be in the cards for broad, slow growth in the market.
However, mortgage rates didn’t stay flat. They climbed starting Jan. 1 and as of today, March 18, mortgage rates are 30-40 basis points higher than Jan. 1. Rates are off their recent peak of a couple weeks ago, but the latest economic news is still very strong, and the markets are growing less sanguine about interest rates easing significantly soon. Last year, the most common view was that mortgage rates would fall in 2024. That hasn’t materialized yet and many people are less optimistic that it will.
We’ll learn more about the future of interest rates at the Federal Reserve meeting this week. Although I don’t have any capacity to predict interest rates, I do know what happens to the housing market if rates rise or fall from here.
Of my initial expectations this year — rising inventory, rising sales rates, rising prices — only rising inventory remains clear at this moment as we finish Q1 with rising interest rates. I talk frequently about how rising rates creates rising inventory. That’s true again this week in the data. My other two expectations, slowly rising sales volume, and slowly rising prices, are less compelling. Let’s look at the data.
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Housing inventory
Looking at last week’s numbers:
There are 507,000 single-family homes on the market in the U.S.
That’s 1.3% more than a week prior, 22% more than a year ago, and 105% more than two years ago.
This week in 2022 was the last of the 3% mortgages. Inventory and rates rose in lockstep starting then.
There are 250,000 more homes on the market now then when we exited the pandemic boom in March 2022.
At this moment in 2022, interest rates and inventory had started rising quickly together as the pandemic boom ended. Mortgage rates were still in the 3s in early March 2022. By April they were in the 4s and by May they were in the 5s.
As mortgage rates rise, so do the number of unsold homes: Demand slows, inventory grows. As the economy remains surprisingly strong, mortgage rates are staying higher for longer than people predicted and as long as rates stay high, inventory will keep growing.
While inventory is growing across the country, some markets are way more impacted and already have more homes on the market than in 2019 or 2020 just before the pandemic. Nearly all markets are showing inventory growth over last year now and this is expanding every week.
The takeaway? If mortgage rates continue to rise to 7.5% or all the way to 8% again, we will see a pretty dramatic increase in unsold inventory. But if rates finally fall, let’s say to 6.5% or lower, we’ll see consumers act very quickly and this inventory growth will reverse. Lower rates mean more buyer competition and less unsold inventory.
New listings
Last week, 59,000 new single-family listings came to market. New listings volume continues to run ahead of last year and we see more sellers than last year. In fact, last week, after including the 16,000 immediate sales, there were 24% more new listings than the same week a year ago.
Last year was probably a record low for mid-March as we had very few sellers. For the rest of 2024 we should expect to have more sellers than a year ago, which is a very good thing. It was not that long ago that we had 70,000 or 80,000 new listings each week in March. We’re at 59,000 right now so the seller volume is climbing, but it’s still a third fewer than in recent years. So nationally there isn’t any sign of supply and demand getting out of balance.
Home prices
Demand is slow as mortgage rates continue to stay in the 7s. Supply is gradually increasing and demand is generally soft. As a result, some of the leading indicators for future home sales prices are starting to weaken.
One obvious place to watch this pricing transition is in the percent of homes on the market with price reductions. This week, 30.9% of the homes on the market have taken a price cut. That’s up half a percent this week and is now more than a year ago.
It’s totally normal to have around a third of homes on the market take a price reduction from the original list price before they sell. I’m going to watch the slope of this curve as this chart will show exactly how quickly the market reacts to higher mortgage rates. This is a pivotal time for measuring buyer demand.
A longer-term signal is the asking prices of all the homes on the market. The median price of single-family homes in the U.S. right now is $435,000. That’s up a notch from a week earlier and just 1.2% higher than a year ago.
Again, in January I expected this price data to be accelerating a little more quickly than it has. Home prices peak each year in June before receding a bit in the second half of the year. The question now is: will we surpass that all-time high this year or will it get delayed until 2025?
The median price of the new listings inched down to $419,900 last week and the new listings cohort is priced 5% higher than a year ago. The new listings are an excellent leading indicator for future home sales prices. The sellers and listing agents use all their collective wisdom and in aggregate they know exactly where to price the new listing. What this data tells us right now is that across the U.S. we have just narrowly increasing home prices this year so far. The signals are slightly weaker now than the data at the start of the year led me to expect.
Pending sales
This week saw 66,000 new contracts for single-family homes started. That’s 15% more than the same week a year ago. Since mortgage rates have been on the rise this year, the sales have been just barely above last year, so this week was probably a bit of an anomaly, but it is welcome nonetheless.
When we look at the price of the homes in contract but not yet sold — these are the pendings — we see that home sales prices are coming in about 4% higher than a year ago. The median price of all the homes in contract right now is $389,000. Home prices ended 2023 at 5-6% gains over the previous year, so home-price appreciation is compressing as mortgage rates have risen.
If rates stay steady around 7%, I don’t expect much price correction lower. If mortgage rates jump from here, I expect that we’ll see a step down in home prices like we saw in October of 2022.
Selling your house is often one of the largest financial transactions you’ll make in your life. It can be complex and emotionally challenging, especially if it’s your first time dealing with a home sale or if the house is full of family memories.
Despite these challenges, millions of people successfully sell their homes each year. The process is well-trodden, but each sale has its unique circumstances and can come with many curveballs.
Whether you’re downsizing, upgrading, relocating, or just ready for a change, selling your house is a big step. The task might seem daunting, but remember, you’re not alone. Many resources can guide you through this process, providing advice and support along the way.
This guide aims to simplify the process and provide you with step-by-step instructions to help sell your house.
From setting your objectives to finally handing over the keys, we’ll walk you through each stage. We will address common challenges and offer expert insights to ensure you’re well-prepared for the journey ahead. Our goal is to help you sell your house at the best possible price within your desired timeline, while minimizing stress and maximizing satisfaction.
Understand Your Selling Objectives
The first step in any successful real estate transaction is understanding your motivations and objectives for selling. Be clear about your goals and timeline to create a selling strategy that will get you the price you want for your home within the timeframe desired.
Why are you selling?
Your motivations for selling might be tied to lifestyle changes, financial circumstances, or relocation for work. Perhaps you’ve outgrown your current house, or maybe it’s become too big after the kids have moved out. You might need to relocate for a new job or prefer a change in scenery as you approach retirement. By identifying your reasons for selling, you’ll have a clearer idea of what you want to achieve with the sale.
What’s your timeline?
Your timeline can significantly influence your selling strategy. If you’re in a rush due to reasons like a job relocation or closing on another home, you may have to price your property more competitively to attract a faster sale. However, if you have the luxury of time, you can afford to be patient and wait for an offer that matches your ideal price.
Evaluate Your Financial Position
Understanding your financial situation is essential in the home-selling process. A realistic view of your finances will help you make informed decisions, particularly in setting a reasonable asking price.
Understand Your Home Equity
Equity refers to the portion of your property that you truly “own” – it’s the difference between the current market value of your home and the remaining balance on your mortgage. Knowing your equity can give you an idea of your potential profits from the sale.
Consider Your Outstanding Mortgage
The amount left on your mortgage is another critical factor. If your outstanding balance is more than your home’s sale price, you may need to consider a short sale, which requires your lender’s approval and can affect your credit score.
Estimate Closing Costs
Closing costs are the fees and expenses you pay to finalize your home’s sale, excluding the commission for the real estate agent. They may include title insurance, appraisal fees, and attorney fees, among other costs. These are usually about 2-5% of the purchase price. Understanding these costs is crucial as they directly impact your net proceeds from the sale.
Taking the time to clarify your selling objectives and understanding your financial position will pave the way for a more streamlined and successful home-selling experience. These factors are not just critical for setting a realistic asking price but also for aligning your home sale with your larger financial or life goals.
Prepare Your House for Sale
Once you’ve identified your selling objectives, the next step is to prepare your house for the market. A well-prepared home can catch the attention of more prospective buyers and even command a higher sale price.
Home Improvements and Necessary Repairs
Before you list your home, assess its overall condition. Some minor upgrades and necessary repairs can significantly enhance your home’s appeal, often leading to a faster sale or higher selling price.
Deep Cleaning and Carpet Cleaning
Begin with a deep clean to ensure your home looks its best. Pay attention to often-overlooked areas, such as baseboards, window sills, and ceiling fans. If you have carpets, consider hiring a professional carpet cleaning service to remove any stains or odors. Cleanliness can significantly influence a buyer’s first impression.
Minor Upgrades and Fixes
Next, tackle minor upgrades and repairs that could deter potential buyers. This could include painting walls with a fresh, neutral color, fixing any plumbing or electrical issues, and ensuring all appliances are in working order. Although these tasks may seem small, they can make a big difference to potential buyers.
Stage Your House
Staging your house involves preparing it for viewing by potential buyers. It can significantly impact how quickly your home sells and the price.
Hire a Professional Stager
A professional stager, although an extra cost, can be a worthwhile investment. For a few hundred dollars, they can transform your space and make it appealing to as many potential buyers as possible. They use strategies like optimal furniture placement, accentuating natural light, and choosing neutral decor to make your home attractive and inviting.
Depersonalize Your Home
Part of effective staging involves depersonalizing your home. This means removing personal items like family photos, collections, and mementos. The aim is to create a neutral space where potential buyers can easily envision themselves and their own belongings. It’s all about helping buyers picture your house as their future home.
In the competitive real estate market, first impressions count. By investing time, money and effort in staging your house for sale, you can stand out from the competition and make a great impression on prospective buyers. These preparations could translate into a quicker sale and potentially a higher price.
Set the Right Price
One of the most critical decisions in the home-selling process is determining the right asking price. Setting a competitive price can help attract more prospective buyers, shorten the time your home spends on the market, and potentially yield a higher sale price.
Understand the Importance of Pricing
Choosing the right price is not just about the amount you’d like to receive. It’s also about understanding buyer psychology and local market trends. Pricing your home correctly can result in more interest, more showings, and ultimately, more offers.
Get a Comparative Market Analysis
A key tool for setting the right price is a Comparative Market Analysis (CMA). A CMA provides information about recent home sales in your area, adjusted for differences in features and conditions, giving you a good idea of what buyers might be willing to pay for your home.
Hire a Great Real Estate Agent
A great real estate agent can provide an accurate and comprehensive CMA. They have the experience and local market knowledge to understand which homes are truly comparable to yours and how various features and upgrades impact pricing.
Consider Comparable Sales
Comparable sales, or “comps,” are recent home sales in your area that are similar to your property in size, condition, and features. Your real estate agent will look at these comps, adjust for differences, and use the information to guide you towards a fair and attractive list price.
Adjust for Features and Conditions
Every home is unique, and its features and condition will impact its value. Your real estate agent will consider these factors when setting your home’s list price. For example, if your home has a new roof or a remodeled kitchen, it might command a higher price compared to a similar home without these upgrades.
Setting the right price is both an art and a science. It requires an understanding of the local real estate market, an evaluation of comparable sales, and an assessment of your home’s unique features. By enlisting the help of a great real estate agent and leveraging their expertise, you can set a competitive price that will attract serious buyers and maximize your profits.
Market Your House
Once your house is ready for sale and priced right, the next step is to get the word out to prospective buyers. Effective marketing can attract more interest and lead to quicker, more competitive offers.
Use High-Quality Professional Photos
Professional photography plays a crucial role in marketing your house. High-quality photos can showcase your home’s best features and give potential buyers a good first impression. Homes listed with professional photos tend to receive more views online, which can lead to faster sales and often at higher prices.
Craft a Compelling Listing Description
A well-written listing description can spark interest and invite potential buyers to learn more. Highlight your home’s unique features, recent upgrades, and what makes it special. Remember, you’re not just selling a property, you’re selling a lifestyle. Allow your real estate agent to offer feedback and help you create an enticing, optimized listing that will also show up in search results when people are looking for a home like yours.
Host Open Houses and Private Showings
Open houses and private showings are opportunities for potential buyers to experience your home in person. Be flexible with your schedule and make your house available for viewing as often as you can. The more people who walk through your door, the better your chances of receiving an offer.
The Role of a Good Real Estate Agent in Marketing
Marketing a house involves a significant time commitment and a specific set of skills. This is where a good real estate agent comes into play.
Leverage the Multiple Listing Service (MLS)
A good real estate agent can list your property on the Multiple Listing Service (MLS), a database of homes for sale that’s used by real estate professionals. An MLS listing can increase your home’s visibility, attracting other real estate agents and their clients.
Find a Realtor with A Proven Track Record
Choose a real estate agent with a proven track record of sales in your area. Their experience and local market knowledge can be invaluable in promoting your home effectively and attracting serious buyers.
In a crowded real estate market, standing out is key. By leveraging professional photography, crafting a compelling listing description, and utilizing the expertise of a good real estate agent, you can market your home effectively, attracting more potential buyers and increasing your chances of a successful sale.
Evaluate Offers and Negotiate
Once your marketing efforts start paying off and offers begin to come in, it’s time to shift focus to negotiation. The goal here is to achieve the best possible terms that align with your selling objectives.
How to Evaluate Offers
When you receive an offer, it’s essential to look beyond the offered price. While the highest offer might seem the most appealing, it’s not always the best choice.
Consider the Buyer’s Lender
Understanding where the buyer’s financing comes from is important. Offers from buyers who are pre-approved by a well-known lender may carry less risk than those from buyers who are not pre-approved or who are using a less established lender.
Assess the Down Payment
The size of the buyer’s down payment can indicate their financial stability. A larger down payment may suggest that the buyer has solid finances and is serious about purchasing your home.
Understand the Buyer’s Timeline
A buyer’s timeline can be just as important as their offered price. A qualified buyer who can close quickly might be more attractive than a higher offer that’s contingent on selling a current house.
How to Manage Multiple Offers
Receiving multiple offers can be exciting, but it can also be overwhelming. Your real estate agent can help you with this process.
Consult with Your Real Estate Agent
Your real estate agent’s experience can be invaluable in this situation. They can guide you through your options, help you compare offers side by side, and give advice based on their understanding of the current real estate market and the specifics of each offer.
Make the Best Decision Based on Your Needs
When reviewing multiple offers, it’s important to consider your own needs and priorities. For example, if you need to sell quickly, you might prioritize a buyer who can close sooner, even if their offer is not the highest.
Negotiating and accepting offers can be a complex part of the selling process. It’s not just about accepting the highest offer, but understanding the nuances of each proposal and making the best decision for your circumstances. With the right real estate agent by your side, you can handle this process confidently and successfully.
Close the Sale
After you’ve accepted an offer, the next step is to finalize the transaction. The closing process involves several stages, including a home inspection, title search, potential repair negotiations, and final paperwork signing. Here’s what to expect:
The Due Diligence Period
The due diligence period allows the buyer to further investigate the property after their offer has been accepted. During this time, the buyer’s agent will arrange for a home inspection.
Home Inspection and Report
A professional home inspector will thoroughly examine your property and generate an inspection report. This document details the condition of the house and outlines any potential issues, from minor maintenance concerns to significant structural problems.
Negotiating Repairs
If the inspection report reveals necessary repairs, there may be further negotiations. Buyers might ask you to handle the repairs, reduce the sale price, or offer a credit at closing to cover the repair costs.
The Title Search and Insurance
As part of the home buying process, the buyer’s lender will work with a title company to conduct a title search. This ensures the house is free from liens or claims and that you have a clear title to transfer to the new owners.
Understanding Title Insurance
Buyers might also negotiate for you to pay for title insurance as part of the closing costs. Title insurance protects the buyer and their lender from future property ownership claims, unexpected liens, or undisclosed property heirs.
Sign the Final Paperwork
The last step in the home sale process is the closing meeting. Here, you’ll sign the final paperwork, which includes key documents such as:
The Bill of Sale
This document transfers the ownership of personal property (like appliances or furniture) included in the home sale.
The Deed
This legal document transfers ownership of the property from you, the seller, to the buyer.
Documents Prepared by a Real Estate Attorney or Real Estate Brokerage
The closing process involves many legal documents. These might be prepared by a real estate attorney or real estate brokerage to ensure everything is in order.
Closing the sale of your house can be a complex process. However, understanding each step can help you proceed with confidence and reach a successful conclusion to your home sale journey.
Post Sale Considerations
Even after the final paperwork has been signed, and the new owners have the keys, there are a few additional factors to consider. The sale of your house doesn’t just end at the closing table. Let’s delve into these post-sale considerations.
Understand the Tax Implications
Selling your house can have significant tax implications. The application of taxes largely depends on the profit you make from the sale and how long you’ve lived in the house.
Capital Gains Tax Exemption
If the house was your primary residence for at least two of the last five years before selling, you might qualify for a capital gains tax exemption. This can significantly reduce your tax liability.
Consult with a Tax Professional
However, tax laws can be complex, and every situation is unique. Consult with a tax professional or a certified public accountant to fully understand the potential tax impacts. They can provide guidance tailored to your specific circumstances.
The Move to Your New Home
Moving to your new home involves logistical and financial considerations. Plan ahead for moving costs, including professional movers, moving supplies, and potential temporary housing.
Keep Records of Your Home Sale Expenses
It’s wise to keep a comprehensive record of all home sale-related expenses. This includes real estate agent commissions, home improvements made before the sale, and any fees or costs associated with closing. These records can be crucial for your future tax returns or financial planning.
Some of your moving costs may be tax-deductible if you or a member of your household is in the military, and you are moving due to a military order. Previously, moving costs were tax-deductible for many people who were relocating due to a job. After 2025, these deductions may return.
Conclusion
Selling your house is a significant event, and educating consumers about the process can reduce stress and result in a better outcome. By preparing your home, pricing it right, and working with a competent real estate agent, you can complete the transaction smoothly and efficiently.
The selling process might seem overwhelming, but with thorough preparation and the right team on your side, it can be an exciting time. Remember, every house can sell, it just requires the right strategy, a competitive price, and a bit of patience.
Frequently Asked Questions
What should I do if my house isn’t selling?
If your house isn’t attracting buyers, various factors could be at play. The asking price may be too high, marketing efforts might be insufficient, or the house’s condition could be deterring potential buyers. Consult with your real estate agent to pinpoint potential problems and devise solutions. You may need to reduce the price, enhance your marketing strategy, or invest in necessary home improvements.
Can I sell my house myself instead of using a real estate agent?
Yes, selling your house yourself is an option. This is known as “For Sale By Owner” (FSBO). However, selling a house involves complex tasks like pricing, marketing, negotiating, and handling legal paperwork. Real estate agents possess the expertise and experience to deal with these challenges. If you opt for FSBO, be prepared for a significant time commitment and be ready to handle these tasks yourself.
How long does it usually take to sell a house?
The timeline for selling a house can vary greatly and depends on numerous factors, such as local market conditions, the home’s condition and price, and even the time of year. On average, it can take anywhere from a few days to a few months. Your real estate agent can give you a better estimate based on local trends and your specific situation.
What is a seller’s market, and how can it impact my home sale?
A seller’s market occurs when the demand for homes exceeds the current supply. This often results in homes selling more quickly and at higher prices. If you’re selling your house in a seller’s market, it can be an advantage as you may get multiple offers and a higher sale price.
Should I make repairs before selling my house?
Whether to make repairs before selling your house often depends on the type and extent of the repairs and the overall condition of your house. Small repairs and improvements, like painting or fixing leaky faucets, can make a good impression on buyers. If your home has more more substantial issues, discuss the repairs with your real estate agent to weigh the cost against the potential return on investment.
High mortgage rates and harsh weather are pushing down home sales, but some house hunters are touring and getting a feel for the market.
The bumpy start to 2024’s housing market continues, with daily average mortgage rates posting their biggest one-day increase in over a year on February 2. The jump came after a hotter-than-expected January jobs report and the Fed’s confirmation that they’re unlikely to cut interest rates in the next two months, which means mortgage rates will probably remain elevated near their current level for at least that long.
Rising home prices are exacerbating rising rates, with the typical monthly mortgage payment just about $100 shy of October’s all-time high. The median U.S. sale price rose 5.4% year over year during the four weeks ending February 4, the biggest increase in over a year. High housing costs are pricing out many would-be homebuyers; pending sales are down 8%, the biggest decline in four months. There are also a few other contributors to sales falling: Harsh winter weather in the first half of January delayed a lot of homebuying deals, and pending sales were improving at this time last year as mortgage rates temporarily dropped.
Still, some house hunters are at least getting a feel for the market. Redfin’s Homebuyer Demand Index–a seasonally adjusted measure of requests for tours and other buying services from Redfin agents–has steadily risen since mid-January, and a separate measure of home tours shows they’ve increased 16% since the start of the year, compared with a 10% rise at this time last year. Some sellers are jumping in, too, with new listings up 7% year over year.
“We’re seeing a bit of recovery with house hunters touring homes, but even demand at the earliest stages isn’t up as much as we would expect at this time of year,” said Chen Zhao, Redfin’s economic research lead. “That’s because mortgage rates are climbing again and winter weather has been harsher than usual in much of the country, keeping some house hunters at home.”
Luis Rojas, a Redfin Premier agent in the Viera West, FL area, said today’s housing market is touch and go. “High mortgage rates brought the local market to a near-standstill from August through November, activity picked up when rates dropped a bit in mid-December, and now it’s slowing down again as rates rise,” Rojas said. “I’m advising buyers–especially first-timers–that the mortgage rates they see in the news aren’t the be-all and end-all. Some local lenders are willing to give rates in the 5% range for new construction projects because any business is better than no business.”
Down 1% from a week earlier; up 3% from a month earlier (as of week ending Feb. 2)
Down 19%
Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)
Up slightly from a week earlier, but down 7% from a month earlier (as of week ending Feb. 4)
Down 14%
Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Google searches for “home for sale”
Down 2% from a month earlier (as of Feb. 3)
Down 16%
Google Trends
Touring activity
Up 16% from the start of the year (as of Feb. 6)
At this time last year, it was up 10% from the start of 2023
ShowingTime, a home touring technology company
Key housing-market data
U.S. highlights: Four weeks ending February 4, 2024
Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
Four weeks ending February 4, 2024
Year-over-year change
Notes
Median sale price
$361,498
5.4%
Biggest increase since Oct. 2022
Median asking price
$395,949
7%
Biggest increase since Sept. 2022
Median monthly mortgage payment
$2,607 at a 6.63% mortgage rate
11.5%
Down roughly $110 from all-time high set in October 2023, but up roughly $250 from the four weeks ending Dec. 31
Pending sales
68,872
-7.8%
Biggest decline since October 2023
New listings
70,415
6.6%
Active listings
740,834
-3.5%
Months of supply
4.2 months
Unchanged
4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.
Share of homes off market in two weeks
33.3%
Up from 32%
Median days on market
48
-2 days
Share of homes sold above list price
22.4%
Up from 20%
Share of homes with a price drop
5.5%
+1 pt.
Average sale-to-list price ratio
98.2%
+0.5 pts.
Metro-level highlights: Four weeks ending February 4, 2024
Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
Metros with biggest year-over-year increases
Metros with biggest year-over-year decreases
Notes
Median sale price
Miami (13.4%)
Anaheim, CA (13.4%)
Detroit (13.3%)
Warren, MI (12.1%)
Chicago (11.3%)
San Antonio, TX (-4.7%)
Austin, TX (-3.7%)
Declined in 2 metros
Pending sales
San Jose, CA (13.8%)
San Francisco, CA (6%)
Anaheim, CA (4.5%)
Riverside, CA (0.4%)
Columbus, OH (0.2%)
San Antonio, TX (-33.2%)
Portland, OR (-30.2%)
Nashville, TN (-21.5%)
New Brunswick, TN (-19.4%)
Houston (-18.5%)
Increased in 5 metros
New listings
Dallas, TX (27.1%)
Miami (26.9%)
Jacksonville, FL (26.3%)
Fort Lauderdale, FL (23.6%)
San Diego, CA (22.1%)
Chicago (-17.8%)
Atlanta (-16%)
Milwaukee, WI (-14%)
Portland, OR (-13.6%)
Nashville, TN (-10.4%)
Declined in 14 metros
Refer to our metrics definition page for explanations of all the metrics used in this report.
It’s always sunny in Philadelphia, whether you’re in a home or an apartment.
Philadelphia’s real estate market is a dynamic landscape with various trends and factors influencing the choices of residents. From affordable neighborhoods to luxury living options, this article delves into the overall market trends, neighborhood insights, market dynamics and renting scenarios in the City of Brotherly Love.
Overall housing market trends
The Philadelphia housing market exhibits a diverse range of trends, catering to individuals with varying preferences and budget constraints. Let’s take a deeper dive into Philadelphia real estate.
Philadelphia’s real estate market is categorized as “somewhat competitive.” Certain homes attract multiple offers, while the average homes typically sell for approximately 3% below the listed price and enter pending status in approximately 47 days. On the other hand, in-demand homes may sell for close to the list price and enter pending status within about 18 days.
In December 2023, the median home price in Philadelphia experienced a 2.9% decrease from the previous year, reaching $235K. The average time homes spent on the market was 52 days, slightly less than the 54 days recorded last year. The number of homes sold in December this year increased to 1,067, compared to 1,049 in the previous year.
Neighborhood insights
Find out what Philadelphia homes are selling for in different neighborhoods, as well as how long they’re staying on the market.
Brewerytown: This neighborhood is characterized by listings like a recent property that sold for the listing price of $450,000 after being on the market for a long stay of 103 days.
Lower Moyamensing: A competitive market shown through listings like a three-bedroom recently sold for 4% under the list price at $239,000. This property sat on the market for 72 days.
Northeast Philadelphia: A highly sought-after neighborhood with listings like a four-bedroom that sold for 7% over the listing price at $374,100. This listing went quickly as it only spent 38 days on the market.
Center City: Known as the heart of Philadelphia has pricier listings like the recently sold two-bedroom that sold for $575,000 after 91 days on the market. This property sold for 9% under the list price.
Germantown: A more affordable neighborhood characterized by listings like a three-bedroom that recently sold for its original listing price of $155,000 after spending 91 days on the market.
Market dynamics
Many factors, including economic conditions, job opportunities and urban development initiatives influence the dynamics of the Philadelphia housing market. These factors fluctuate between the varying Philadelphia neighborhoods. Home prices, buyer demand and overall Philadelphia housing market trends are dependent on the individual neighborhoods.
Renting in Philadelphia
The rental market in Philadelphia offers a diverse array of options, featuring varying prices and living experiences depending on the specific neighborhood. Let’s delve into the current status of the rental market in Philadelphia.
Rental price trends
Philadelphia has experienced fluctuating rent prices, just as other large US cities have as well. Upper North Philadelphia stands out with an average 1-bedroom apartment rent of $925 which is a 61% rise in rent YoY.
Areas like Rittenhouse Square and University City saw a small change of 8%, raising their one-bedroom options to $2,200 and $2,386, respectively. Conversely, affordable options are available in Lower North and Brewerytown, where average 1-bedroom rents are down 17% bringing rent to $1,450.
Affordable neighborhoods
Unearthing the most affordable neighborhoods is crucial for those prioritizing budget-friendly living in Philadelphia. Cedar Park, Germantown and Mantua provide affordable housing options, presenting alternatives to the city’s average 1-bedroom rent of $1,771.
Popular neighborhoods
Where are the neighborhoods that new Philadelphia residents are flocking to? We’ve identified a few of the top contenders.
Lower North: Lower North Philadelphia combines historical allure with modern urban living, creating a diverse and dynamic atmosphere for residents and visitors alike.
Brewerytown: Brewerytown, once industrial, is now a trendy residential enclave with historic charm, attracting a creative community drawn to its artistic vibrancy and proximity to Fairmount Park.
North Central: North Central, centered around Temple University, pulsates with academic energy and community engagement, making it a lively hub for both students and residents.
Avenue of the Arts North: Avenue of the Arts North, at the heart of Philadelphia, is a cultural epicenter renowned for its theaters, music venues and artistic ambiance, offering residents a vibrant and enriched urban experience.
Migration patterns
Whether individuals are arriving in search of new opportunities or departing for different horizons, tracking these migration patterns contributes to a comprehensive understanding of the Philadelphia housing dynamics. According to Redfin market data gathered Oct 2023 – Dec 2023, 22% of Philadelphia homebuyers searched to move out of Philadelphia, while 78% looked to stay within the metropolitan area.
People are coming to Philadelphia from:
People are leaving Philadelphia for:
Luxury living options
For those with a penchant for luxury apartment living, Philadelphia boasts options in University City, Logan Square and Rittenhouse Square. These neighborhoods provide upscale living experiences, albeit at a higher cost compared to the city’s average 1-bedroom rent. Some luxury apartment options are found in communities like The Riverloft Apartment Homes, The Alexander and The Atlantic.
Taxes
Taxes play a significant role in the overall cost of living in any city. The minimum combined sales tax rate for Philadelphia, Pennsylvania is 8%. This is the total of state, county and city sales tax rates.
Unveiling the keys to your Philadelphia dream
Philadelphia’s housing market holds so many diverse options, catering to a wide range of preferences and budgets. Whether you’re drawn to the affordability of specific neighborhoods or the luxury living options in the city’s vibrant districts, this guide will assist you in making informed decisions in the pursuit of a home in the City of Brotherly Love.
Are you ready to make the move to Philly? Find the right Philadelphia apartments to match your needs.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
It’s always sunny in Philadelphia, whether you’re in a home or an apartment.
Philadelphia’s real estate market is a dynamic landscape with various trends and factors influencing the choices of residents. From affordable neighborhoods to luxury living options, this article delves into the overall market trends, neighborhood insights, market dynamics and renting scenarios in the City of Brotherly Love.
Overall housing market trends
The Philadelphia housing market exhibits a diverse range of trends, catering to individuals with varying preferences and budget constraints. Let’s take a deeper dive into Philadelphia real estate.
Philadelphia’s real estate market is categorized as “somewhat competitive.” Certain homes attract multiple offers, while the average homes typically sell for approximately 3% below the listed price and enter pending status in approximately 47 days. On the other hand, in-demand homes may sell for close to the list price and enter pending status within about 18 days.
In December 2023, the median home price in Philadelphia experienced a 2.9% decrease from the previous year, reaching $235K. The average time homes spent on the market was 52 days, slightly less than the 54 days recorded last year. The number of homes sold in December this year increased to 1,067, compared to 1,049 in the previous year.
Neighborhood insights
Find out what Philadelphia homes are selling for in different neighborhoods, as well as how long they’re staying on the market.
Brewerytown: This neighborhood is characterized by listings like a recent property that sold for the listing price of $450,000 after being on the market for a long stay of 103 days.
Lower Moyamensing: A competitive market shown through listings like a three-bedroom recently sold for 4% under the list price at $239,000. This property sat on the market for 72 days.
Northeast Philadelphia: A highly sought-after neighborhood with listings like a four-bedroom that sold for 7% over the listing price at $374,100. This listing went quickly as it only spent 38 days on the market.
Center City: Known as the heart of Philadelphia has pricier listings like the recently sold two-bedroom that sold for $575,000 after 91 days on the market. This property sold for 9% under the list price.
Germantown: A more affordable neighborhood characterized by listings like a three-bedroom that recently sold for its original listing price of $155,000 after spending 91 days on the market.
Market dynamics
Many factors, including economic conditions, job opportunities and urban development initiatives influence the dynamics of the Philadelphia housing market. These factors fluctuate between the varying Philadelphia neighborhoods. Home prices, buyer demand and overall Philadelphia housing market trends are dependent on the individual neighborhoods.
Renting in Philadelphia
The rental market in Philadelphia offers a diverse array of options, featuring varying prices and living experiences depending on the specific neighborhood. Let’s delve into the current status of the rental market in Philadelphia.
Rental price trends
Philadelphia has experienced fluctuating rent prices, just as other large US cities have as well. Upper North Philadelphia stands out with an average 1-bedroom apartment rent of $925 which is a 61% rise in rent YoY.
Areas like Rittenhouse Square and University City saw a small change of 8%, raising their one-bedroom options to $2,200 and $2,386, respectively. Conversely, affordable options are available in Lower North and Brewerytown, where average 1-bedroom rents are down 17% bringing rent to $1,450.
Affordable neighborhoods
Unearthing the most affordable neighborhoods is crucial for those prioritizing budget-friendly living in Philadelphia. Cedar Park, Germantown and Mantua provide affordable housing options, presenting alternatives to the city’s average 1-bedroom rent of $1,771.
Popular neighborhoods
Where are the neighborhoods that new Philadelphia residents are flocking to? We’ve identified a few of the top contenders.
Lower North: Lower North Philadelphia combines historical allure with modern urban living, creating a diverse and dynamic atmosphere for residents and visitors alike.
Brewerytown: Brewerytown, once industrial, is now a trendy residential enclave with historic charm, attracting a creative community drawn to its artistic vibrancy and proximity to Fairmount Park.
North Central: North Central, centered around Temple University, pulsates with academic energy and community engagement, making it a lively hub for both students and residents.
Avenue of the Arts North: Avenue of the Arts North, at the heart of Philadelphia, is a cultural epicenter renowned for its theaters, music venues and artistic ambiance, offering residents a vibrant and enriched urban experience.
Migration patterns
Whether individuals are arriving in search of new opportunities or departing for different horizons, tracking these migration patterns contributes to a comprehensive understanding of the Philadelphia housing dynamics. According to Redfin market data gathered Oct 2023 – Dec 2023, 22% of Philadelphia homebuyers searched to move out of Philadelphia, while 78% looked to stay within the metropolitan area.
People are coming to Philadelphia from:
People are leaving Philadelphia for:
Luxury living options
For those with a penchant for luxury apartment living, Philadelphia boasts options in University City, Logan Square and Rittenhouse Square. These neighborhoods provide upscale living experiences, albeit at a higher cost compared to the city’s average 1-bedroom rent. Some luxury apartment options are found in communities like The Riverloft Apartment Homes, The Alexander and The Atlantic.
Taxes
Taxes play a significant role in the overall cost of living in any city. The minimum combined sales tax rate for Philadelphia, Pennsylvania is 8%. This is the total of state, county and city sales tax rates.
Unveiling the keys to your Philadelphia dream
Philadelphia’s housing market holds so many diverse options, catering to a wide range of preferences and budgets. Whether you’re drawn to the affordability of specific neighborhoods or the luxury living options in the city’s vibrant districts, this guide will assist you in making informed decisions in the pursuit of a home in the City of Brotherly Love.
Are you ready to make the move to Philly? Find the right Philadelphia apartments to match your needs.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
The Miami housing market has been a topic of interest for both buyers and sellers in recent years. With its lively vibe, beautiful beaches and booming economy, Miami has become a desirable location for people of all walks of life looking to invest in real estate.
In this article, we will delve into the current state of the Miami home prices, exploring key trends, average home prices and market competitiveness. Whether you’re a prospective buyer, seller or simply curious about the Miami real estate scene, this is the place to be to gain valuable insights you need to enter the market with confidence.
Miami housing market at a glance
Miami’s housing market has experienced significant growth in recent years, with rising home prices and increased demand. In December 2023, the median sale price for homes in Miami reached $570,000, reflecting an 11.8% increase compared to the previous year. This price surge indicates a strong market and a favorable environment for sellers.
Average days on the market
One important factor to consider in the Miami housing market is the average number of days homes stay on the market. Homes in Miami sell after an average of 69 days, which is a slight decrease from the previous year’s average of 71 days. This suggests that the market is relatively quick-paced, with buyers actively searching for properties and pulling the trigger when they see something they like.
Competitiveness of the Miami housing market
To assess the competitiveness of the Miami housing market, we can look at multiple offers and sale-to-list price ratios. In Miami, multiple offers are relatively rare, indicating a less competitive market compared to other cities. On average, homes in Miami sell for about 4% below the list price.
Miami’s pricing compared to the national average
Miami’s median sale price of $570,000 is 41% higher than the national average. This significant difference highlights the desirability of the Miami real estate market and the premium prices buyers may expect to pay. Additionally, the overall cost of living in Miami is 19% higher than the national average, further emphasizing the city’s appeal to those in higher tax brackets.
Number of homes sold
The number of homes sold in Miami provides valuable insights into the overall market activity. In December 2023, there were 495 homes sold, representing an increase from the previous year’s 472 homes sold. This uptick indicates a strong housing market with a healthy level of buyer demand.
Miami rental market overview
Apart from the housing market, Miami’s rental market is also a crucial aspect to consider for anyone seeking temporary or long-term accommodations. 2024 has already proven a positive year for renters as prices have slowly dipped in several key markets, and landlords are willing to offer valuable renter incentives. Let’s explore the average prices and trends in Miami’s available rentals to provide a comprehensive analysis.
Average rent prices in Miami
The average rent prices in Miami vary depending on the type of apartment. For studio apartments, the median price started at $2,644 in January and gradually decreased to $2,210 by December. On the other hand, the median price for one-bedroom apartments remained relatively stable throughout the year, ranging from $2,579 to $2,726. For two-bedroom apartments, the median sale price fluctuated between $3,872 and $3,600.
Month
Studio
1 Bed
2 Beds
Jan 2023
$2,644
$2,579
$3,872
Feb 2023
$2,579
$3,009
$3,972
Mar 2023
$2,633
$2,986
$3,908
Apr 2023
$2,615
$2,938
$3,790
May 2023
$2,615
$2,952
$3,811
Jun 2023
$2,435
$2,927
$3,702
Jul 2023
$2,423
$2,921
$3,728
Aug 2023
$2,355
$2,770
$3,675
Sep 2023
$2,249
$2,719
$3,504
Oct 2023
$2,274
$2,700
$3,401
Nov 2023
$2,270
$2,684
$3,565
Dec 2023
$2,209
$2,658
$3,552
Jan 2024
$2,210
$2,726
$3,600
Rental market trends
Understanding Miami’s rental market trends can help landlords and tenants make informed decisions. Let’s take a closer look at the changes in average rent prices over the past year.
Average rent price fluctuations
In the past year, the average rent in Miami experienced slight fluctuations. Studio apartments saw a 16% decrease in rent, starting at $2,644 in January and ending at $2,210 in December. Similarly, one-bedroom apartments experienced a 9% decrease, with rent ranging from $2,579 to $2,726. For two-bedroom apartments, the rent decreased by 7%, fluctuating between $3,972 and $3,600.
Apartment type
Avg. rent
Annual change
Studio
$2,210
-16%
1 Bed
$2,726
-9%
2 Beds
$3,600
-7%
Affordable neighborhoods in Miami
For those looking for more affordable housing options in Miami, certain neighborhoods offer lower rent prices. Let’s explore some of the most affordable neighborhoods in Miami and the average rent prices for one-bedroom apartments.
Neighborhood
Average rent for 1-bedroom apartment
Allapattah
$1,700
Little Haiti
$1,700
Model City
$1,700
Little River
$1,700
Shore Crest
$1,700
Neighborhood rent trends
Different neighborhoods in Miami may have varying rent trends, making it key to consider location-specific factors when searching for rental properties. Here is a breakdown of rent trends for studio apartments in various neighborhoods in Miami.
Neighborhood
Studio Avg Rent
Annual Change
Lower Brickell
$3,810
-7%
Miami Financial District
$3,500
+32%
Brickell
$3,159
+17%
Miami Urban Acres
$2,940
-27%
Riverside
$2,828
+21%
Riverview
$2,813
+20%
West Brickell
$2,660
-2%
Brickell Village
$2,619
+9%
Downtown
$2,584
-4%
Riverfront
$2,550
N/A
Comparison with other cities
If you’re considering Miami as a potential relocation destination, it’s helpful to understand how it compares to other cities in terms of rental prices. Here is a comparison of studio apartment average rent prices in Miami and several other cities.
City
Studio Avg Rent
Annual Change
Coral Gables
$2,723
-15%
Miramar
$2,370
+76%
Sunny Isles Beach
$2,350
-2%
Doral
$2,142
-2%
Boca Raton
$1,972
-16%
Plantation
$1,930
+21%
Fort Lauderdale
$1,920
-14%
Coconut Grove
$1,800
+3%
Hialeah
$1,800
+4%
Miami Beach
$1,766
-12%
Make Miami your home
The Miami housing market is a fertile environment for buyers, sellers and renters alike. With rising home prices, a relatively quick sales process and increased demand, Miami proves to be an attractive real estate destination.
The rental market provides a range of options, from affordable neighborhoods to upscale areas. By understanding the current trends and market conditions, anyone can make an informed decision when navigating the Miami housing and rental market. So, whether you’re looking to buy, sell or rent, Miami is a great place to call home.