Philadelphia Home Demand Index, November 2021

[Yuriy Skripnichenko]

Hi all, new report from Bright MLS.

Following four months of Moderate demand for homes in the Philadelphia Metro area, buyer interest decreased in November, in line with the typical seasonal slowdown in activity at the end of the year. In addition, strained affordability as home prices continued to rise likely contributed to the softening of demand.

Most of Philadelphia is in slow or steady demand. Far NE Philadelphia stays in high demand. 

Demand for homes in the Philadelphia Metro area was weakest for lower-priced single-family homes and strongest for higher-priced single-family homes, a pattern that has been in place for several months. Demand decreased for all types of homes in November. Although still reflecting the strongest level of buyer interest among all types of homes, the Index for higher-priced single-family homes fell the most, moving from High to Moderate demand. The months supply of homes ranged from 1.3 months for mid-priced single-family homes to 5.3 months for higher-priced condos.

Cheers, 

Yuriy 

[Chris McTyre]

If affordability is an issue, why do you think demand was weakest for lower-priced single family homes? Is this indicating that the affordability issue lies in the fact that the typical lower-priced home has become too expensive?