Philadelphia’s Housing Market May Be Losing Some Momentum

Philadelphia’s housing market has kept strong annual starts and closing pace, but quarterly declines indicate that the momentum may be slowing down.

While Philadelphia’s housing market remains buoyant according to the annual numbers, quarterly declines indicate that the momentum may be slowing down.

According to a Metrostudy survey of Philadelphia region’s housing market for Q4 2016, 2,275 new homes started in the quarter show a 19.4 percent decrease from the previous quarter, and a 2.9 percent drop compared to the same period last year.

However, on an annual basis, starts numbered 10,181 at the end of the surveyed quarter, showing an 8.1 percent increase year over year. The annual closings pace was 10,224, same as for the previous quarter, and up 5.9 percent for Q4 of 2016.

“The fourth quarter saw starts and closings decline from their 3Q16 levels, but the pace of both annual starts and annual closings has been over 10,000 for the past three consecutive quarters,” explained Quita Syhapanya, Director of Metrostudy’s Philadelphia market.

The fourth quarter of 2016 saw the median closing price for a new home in the Philadelphia region at $356,700, a 1.2 percent increase over the previous quarter.

“The Philadelphia MSA continues to be under supplied of finished lots,” noted Syhapanya. “New lot development will be important for the lifeline of the builders here as we move into 2017 and beyond.”


Top photo credit: MarkMoz12 Home For Sale Sign via photopin (license)

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