Home Sales Dip Due to Affordability Problems

DEVON, PA — “Home sales are down, mostly due to affordability issues,” remarks Berkshire Hathaway HomeServices (BHHS) Fox & Roach President Joan Docktor. “Our month’s supply of available houses for sale (inventory) is slowly building. I am confident that it will be a seller’s market at least through 2023,” Docktor continued.

Number of Properties Sold Decreased

The number of properties sold overall in July of 2022, in the 12-county greater Philadelphia region, decreased by 22.8 percent from this time last year, according to (BHHS) Fox & Roach’s July HomExpert Market Report^©. There were 7,652 homes sold in July 2022, compared to 9,913 sold in July 2021.

• In BHHS Fox & Roach’s Pennsylvania market areas, the number of properties sold was down by an average of 24.6 percent, with 4,560 sold in July 2022, compared to July 2021’s 6,046 homes sold. Delaware County had the biggest decrease, down 27.9 percent and Bucks County had the second biggest decrease, down 27 percent compared to July 2021. Chester County had a 25.3 percent decrease compared to July 2021.
• In BHHS Fox & Roach’s New Jersey market areas, the number of properties sold decreased by an average of 21.9 percent, with 2,134 sold in July 2022 and 2,732 sold in July 2021. Mercer County had the largest decrease, down 29 percent and Camden County had the second largest decrease, down 25.4 percent compared to July 2021. Gloucester County had a 22.6 percent decrease.

Monthly Average Inventory Decreased

The number of homes for sale overall in the 12-county Greater Philadelphia region is down by 12.2 percent, with 22,772 homes on the market in July 2022, compared to 25,930 for sale in July 2021.

• In BHHS Fox & Roach’s Pennsylvania market areas, the average inventory is down by 8.7 percent, with 14,700 for sale in July 2022 and 16,109 for sale in July 2021. Chester County decreased 31.2 percent and Delaware County decreased 21 percent. Bucks County decreased 18 percent and Montgomery County decreased 15 percent compared to July 2021.
• In BHHS Fox & Roach’s New Jersey market areas, the average inventory is down by 19.6 percent, with 5,775 sold in July 2022 and 7,181 sold in July 2021. Mercer County had the largest drop, down by 24.3 percent and Gloucester County had the second largest drop, down by 21.5 percent. Burlington County had an 18.8 percent decrease compared to July 2021.

Average Days on Market Decreased

The average days a house stayed on the market overall in the 12-county greater Philadelphia area has decreased by 4.8 percent compared to July 2021, with 20 average days on market in July 2022 and 21 average days on market in July 2021.

• In BHHS Fox & Roach’s Pennsylvania market areas, the average days on market decreased 5.1 percent, with 18.6 days in 2022 and 19.6 average days on the market in July 2021. Bucks County’s average days on market decreased 36 percent and Delaware County’s average days on market decreased 29 percent. Montgomery County average days on market decreased 28 percent.
• In BHHS Fox & Roach’s New Jersey market areas, the average days on market increased 7.1 percent, from 22 average days on market in July 2021 to 24 average days on market in July 2022. Burlington County’s average days on market decreased by 10 percent while Salem County’s increased by 30.3 percent.

Average Sale Prices Increased

The average sale price in the 12-county greater Philadelphia region increased by 8.5 percent compared to July 2021, from $384,402 in July 2021 to $417,165 in July 2022.

• In BHHS Fox & Roach’s Pennsylvania market areas, the average sale price was $471,939 in July 2022 compared to $433,837, showing an 8.8 percent increase. Chester County had the highest increase of 13.5 percent compared to July 2021. Bucks County had the second highest increase in average sale price by 11.9 percent and Delaware County had an 8 percent increase.
• In BHHS Fox & Roach’s New Jersey market areas, the average sale price was $362,758 in July 2022 compared to $312,614, showing a 16 percent increase from July 2021. Salem County had the highest increase in sale price of 20 percent. Gloucester County had a 17.3 percent increase compared to July 2021 and Burlington County increased 16.6 percent.

Properties Under Contract Decreased

The number of properties under contract overall in the 12-county greater Philadelphia region is down by 15.2 percent, with 7,554 homes under contract in July 2022, compared to 8,904 homes under contract in July 2021.

• In BHHS Fox & Roach’s Pennsylvania market areas, properties under contract have decreased by 16.8 percent, from 4,383 under contract in July 2022 to 5,266 in July 2021. Chester County had the biggest decrease compared to July 2021, of 25 percent, while Bucks County decreased 17.4 percent compared to July 2021 and Philadelphia County decreased 17 percent.
• In BHHS Fox & Roach’s New Jersey market areas, properties under contract have decreased by 11.7 percent from 2,533 under contract in July 2021 to 2,236 in July 2022. Gloucester County had the biggest decrease compared to July 2021, of 17.4 percent, while Mercer County decreased 15.6 percent compared to July 2021.

Main Line:

• Home sales on the Main Line’s nine major municipalities/townships have decreased 35.9 percent, with 259 homes sold in July 2022, compared to 404 homes sold in July 2021.
• Average sale price increased by 5.6 percent, from $740,976 in July 2021 to $782,114 in July 2022.
• Properties under contract have decreased by 9.8 percent, with 259 in July 2022 and 287 in July 2021.
• Monthly average inventory decreased by 22 percent, with 602 homes for sale in July 2022 and 772 homes for sale in July 2021.
• Average days on market decreased by 29 percent, with 15 days on market in July 2022 and 21 days on market in July 2021.

Delaware:

• Total properties sold in Kent and New Castle Counties are down by 15.9 percent, from 1,114 sold in July 2021 to 937 sold in July 2022. New Castle County had a 15.5 percent decrease in properties sold in July 2022, compared to July 2021 and Kent County decreased by 16.7 percent.
• Average sale price in Delaware is up by 6.9 percent, from $327,020 in July 2021 to $349,495 in July 2022. New Castle County sale price increased 6.2 percent and Kent County increased 7.6 percent.
• Average days on market in Delaware decreased by 16.7 percent, from 18 days in July 2021 to 15 days in July 2022. The average days on market in New Castle County decreased 14.3 percent.
• Monthly average inventory in Delaware decreased by 12.8 percent, from 1,289 homes for sale in July 2021 to 1,125 for sale in July 2022. In New Castle County, there were 19.9 percent less homes for sale, and in Kent County, there were 4.3 percent more homes for sale.
• Properties under contract in Delaware decreased by 15.5 percent, from 1,085 properties under contract in July 2021 to 917 properties in July 2022. 

Jersey Shore:

• Atlantic County’s home sales decreased by 41 percent, with 320 homes sold in July 2022 and 542 homes sold in July 2021. Average prices of homes are up by 9 percent, from $463,895 in July 2021 to $503,573 in July 2022. Properties under contract decreased by 21.8 percent, from 536 under contract in July 2021 to 419 under contract in July 2022. Average days on market is up by 4.8 percent compared to July 2022. Monthly average inventory is down by 9.3 percent.
• Cape May County home sales decreased 36.9 percent, with 166 homes sold in July 2022 and 263 sold in July 2021. The average price of properties sold increased by 39 percent, from $558,237 in July 2021 to $778,013 in July 2022. The monthly average inventory is up by 1.6 percent and properties under contract are down by 27.8 percent, compared to July 2021.

Lehigh Valley:

• Home sales in the Lehigh Valley decreased by 19 percent, with 741 homes sold in July 2022 compared to 915 homes sold in July 2021.
• Average sale price on homes is up by 14.4 percent, from $309,763 in July 2021 to $354,483 in July 2022.
• Monthly average inventory is down by 23.8 percent, with 1,840 homes for sale in July 2022 compared to 2,414 homes for sale in July 2021.
• Average days on market is down by 24.2 percent, from 17 days in July 2021 compared to 13 days in July 2022.
• Properties under contract have decreased by 8.3 percent, with 770 properties under contract in July 2022 and 840 under contract in July 2021.

Note, the Greater Philadelphia region includes counties in Southeastern Pennsylvania, Southern New Jersey and Delaware, which are: Philadelphia, Bucks, Chester, Delaware, Montgomery, Burlington, Camden, Gloucester, Mercer, Salem, Kent and New Castle. Main Line data includes Malvern Borough, Tredyffrin Township, Willistown Township, Easttown Township, Haverford, Newtown, Radnor, Narberth, and Lower Merion. Center City data includes zip codes 19102, 19103 (Rittenhouse Square), 19106 (Old City), 19107 (Washington Square), 19123 (Northern Liberties/Fishtown), and 19130 (Fairmount/Art Museum). The Lehigh Valley region includes both Lehigh and Northampton Counties. Additional charts and graphs available upon request. Top municipalities listed include 20 or more sales. Days on Market (DOM) data measures the number of days a property is listed from initial list date in the multiple listing service (MLS) until the property goes under contract.