How’s The Real Estate Market in South Jersey and PA? – Fall Update!

Now that fall is in full swing, it is a good time to check out how the current market is doing in our South Jersey and Pennsylvania areas.   While you are involved in your fall activities, such as apple and pumpkin picking, watching football games, or going to fall festivals throughout our area, and with all that is going on in the world, you may be curious about the real estate market.

Here is a snapshot of where the market is this fall:

National Economy (because it has some effect on the local market)

Overall, the economy has accelerated its growth, ever so slightly, in the 2nd quarter of this year, which is what the federal reserve’s actions wanted to happen to reduce inflation.  The Federal Reserve Bank of Atlanta puts the 3^rd quarter GDP estimate at 4.9% which is higher than the previous quarters.   Job creation pace has slowed down and unemployment rate inched up to 3.8% in August.  Now, because it is still a strong job market, the Federal Reserve Bank’s attempts to slow down the economy and inflation means that we won’t be seeing lower interest rates in the near future, for the time being.  The longer the interest rates continue, it could cause damage to the long-term economy and considerably slow its growth.   Some experts want a recession to begin so interest rates can come down and not cause long-term damage to the economy.   (Source:  Otteau Reports)

As of this writing the interest rates are just below the 8%, and don’t see them coming down any time soon.    This will continue to cause some buyers to remain on the sidelines and some sellers will continue to not move forward with selling their home because they don’t want to lose the low interest rates.   On the flip side, with the high interest rates mortgage companies are coming up with creative loan programs to help buyers and move up (or move down) sellers overcome these rates, at least for the short term.   I am continuously speaking with various lenders and staying updated on these programs.   Reach out to me (click here) if you want to learn more about them.

At the time of this writing, there is conflict and instability breaking out in the Middle East.    If this continues and spreads, it can have impact on the U.S. housing market.  At this moment it is unknown how this will affect our economy, but it is important to monitor it and see how it can affect home prices in our area.

State Economy

New Jersey – unemployment as of as of August has increased to 4.2% which is higher than the national average of 3.8%.  However, unemployment claims decreased in September and appear to continue to go down as of this writing.  The good news is that the state has added more jobs than were lost during the covid pandemic.  Housing demand is still strong due to lack of inventory, thus keeping prices up, but seeing a cooling into the new year.  (Source:  Otteau Reports)

Pennsylvania – unemployment as of July is 3.5% which is lower than the national average of 3.8%, that shows that Pennsylvania’s economy is doing better than its neighboring state.  However, it is predicted that unemployment will slightly increase into the next year.  With solid employment numbers and strong economy housing prices are likely to increase for the remainder of the year.  The housing market in Pennsylvania continues to be the most affordable in the Northeast region. (TD Bank State Economic Forecast)

Housing Market

New Jersey – home sales have continued to slow this year.   Sales are down 20% from last year.  The main reasons are due to less homes on the market, rising mortgage rates, and general pessimism that the economy is headed in the wrong direction.  This makes it more challenging for more home buyers.   As we go into the later part of this year, home prices may start to inch down.   (Source:  Otteau Reports)

As of September 2023

• Burlington County
  • Burlington County is currently experiencing a strong seller’s market.  It has only 1.44 months of inventory.  The stronger the seller’s market, prices rise higher, there are more buyers than sellers – more demand. (Source:  RPR)
    
    • Homes are selling at 2.18% over asking price
      
    • Average days on market is 17 (that is low!)  
      
    • Median sold price is $359,950
      
    • Prices are up 7.5% this year
      
    • There are 52 cities in Burlington County. (Source:  Realtor.com)
      • Moorestown has a median listing price of $694,500, making it the priciest town.
      • Burlington City is the most affordable with a median price of $281,700.
      • Mount Laurel homes sell the quickest.
      • Marlton (Evesham) and Burlington Twp sell the most over asking.
      • Willingboro median sold price is $334,900, which is 10.7% higher than last year.

• Camden County
  • Camden County is currently experiencing a strong seller’s market.  It       only has 1.34 months of inventory.  The stronger the seller’s market, prices rise higher, there are more buyers than sellers – more demand as well.  (Source:  RPR)
    
    • Homes are selling for 2.9% over asking.
      
    • Average days on market is 16!!  (that is incredibly low!).
      
    • Median sold price is $310,000.
      
    • There are 52 cities in Camden County. (Source:  Realtor.com)
      • Haddonfield has a median listing price of $600,000, making it the most expensive town.
      • Camden City has a median listing price of $135,000, which is the most affordable area.
      • Cherry Hill homes sell the most over asking, average home price is $424,900.
      • Pennsauken median sold price is $282,500 and are selling 8% higher than a year ago.
      • Sicklerville, Winslow Twp and Gloucester Twp sell the quickest
        
• Mercer County
  • Mercer County is also experiencing a strong seller’s market.  It only has 1.46 months inventory.  The stronger the seller’s market, prices rise higher, there are more buyers than sellers and more demand as well. (Source:  RPR)
    
    • Homes are selling for 3.2% above asking
      
    • Average days on market is 20 days
      
    • Median sold price is $385,000
      
    • There are 22 towns in Mercer County. (Source:  Realtor.com)
      • Princeton has a median listing price of $1,000,000, making it the priciest town. 
      • Trenton City has a median listing price of $219,000, making it the most affordable.
      • East Windsor sold the most over asking.
      • Ewing, and East Windsor sells the homes the quickest
      • Hamilton median sold price was $365,500, which is 12.3% higher than a year ago.

Pennsylvania – home sales have continued to slow down this year.   Sales are down 25.8% from last year.   Similar to New Jersey, the main reasons are due to less homes on the market and rising mortgage rates.  Pennsylvania saw an increase in sales as the median sales price slightly came down in August 2023.  (Source:  Pennsylvania Association of Realtors)

As of September 2023:

• Bucks County
  • Bucks County is currently experiencing a strong seller’s market.  It has only 1.27 months of inventory.  The stronger the seller’s market, prices rise higher, there are more buyers than sellers – more demand. (Source:  RPR)
    
    • Homes are selling at 1.1% over asking price
      
    • Average days on market is 12 (crazy low!)  
      
    • Median sold price is $447,450
      
    • There are 82 cities in Bucks County. (Source:  Realtor.com)
      • New Hope has a median listing price of $2,000,000 making it the priciest town.
      • Levittown has a median listing price of $359,500, making it the most affordable town. 
      • Levittown, Bensalem, Southampton and Yardley homes sell the quickest
      • Yardley, Quakertown, and Southampton homes sell the most over asking.
      • Bensalem median sold price is $389,500, which is 12% higher than last year
      • Langhorne homes median sold price $517,500, which is down -13.3% higher than last year.

• Montgomery County
  • Montgomery County is currently experiencing a strong seller’s market.  It has only 1.25 months of inventory.  The stronger the seller’s market, prices rise higher, there are more buyers than sellers – more demand. (Source:  RPR)
    
    • Homes are selling at 2.5% over asking price
      
    • Average days on market is 9 (that is extremely low!)  
      
    • Median sold price is $425,000
      
    • There are 111 cities in Montgomery County. (Source:  Realtor.com)
      • Bryn Mawr has a median listing price of $899,900, making it the priciest town.
      • Black Horse has a median listing price of $250,000, making it the most affordable town. 
      • Pottstown, Abington, and Collegeville homes sell the most over asking.
      • Jeffersonville homes sell the quickest.
      • Norristown median sold price is $267,500, which is about the same as last year.

• Philadelphia County
  • Philadelphia County is currently experiencing a seller’s market.  It has only 3.77 months of inventory.  Not as strong as the surrounding counties.  The stronger the seller’s market, prices rise higher, there are more buyers than sellers – more demand. (Source:  RPR)
    
    • Homes are selling at 97.0% of the asking price
      
    • Average days on market is 28  
      
    • Median sold price is $263,250
      
    • There are 7 cities in Philadelphia County. (Source:  Realtor.com)
      • Middle City East has a median listing price of $707,500, making it the priciest city.
      • Overbrook Hills has a median listing price of $189,500, making it the most affordable city. 
      • Philadelphia city median sold price was $250,000, which is down -6.7% less than the previous year.
      • Mid-City West median sold price is $412,500, which is 4.4% higher than last year.

That is a snapshot of the real estate market in our area today.  If you want to get the knowledge of a specific town or neighborhood, feel free to reach out to me anytime (click here).   

Remember, despite what is happening in the market, buyers still need to buy, and sellers still need to sell. 

So, if you need to buy or sell, or both at the same time, make sure you are aware of the type of market you are in to better inform yourself on marketing, pricing, and coordination, all with the help of your real estate agent. 😊