Home sales in Philadelphia declined nearly 40% last year compared to the prior year, according to a new report from the Pew Charitable Trusts. In 2023, a total of 15,617 homes were sold — nearly 10,000 fewer than 2022, a banner year for home sales in Philadelphia. The report attributes the “exceptional” uptick in 2022 to low interest rates and other “pandemic-related” trends, including the increase in people working from home. “It was one of the highest numbers of sales that we’ve had since the Great Recession,” said Katie Martin, lead researcher on Pew’s latest “State of the City” report. Affordability is one of the main issues causing the dip in sales. The average rate for a 30-year fixed mortgage is hovering around 7% — more than double the rate locked in by homeowners who refinanced during the pandemic. But despite the drop in home sales, homeowners continued to outnumber renters in the city. In 2022, there were 353,535 owner-occupied properties in Philadelphia, according to Pew. Renters occupied 311,986 properties. That translates to a 53% homeownership rate. “The number of renters has been increasing in tandem with the number of homeowners,” Martin said. “But it remains to be seen whether the number of renters will outpace the number of homeowners.” Read more here.
Source: PlanPhilly; 4/16/2024