Philadelphia, PA is the city of brotherly love. There's an abundance of history in the city and many vacation there for a weekend or two on the East Coast. As far as real estate goes, as of May 2021, let's dive into what's going on in Philadelphia.
Quick Facts
Updated May 2021
- 1.6 million population
- 17% higher cost of living
- The median price of homes is $241,000
- The average square foot price is around $200.
- Homes are on the market for an average of 50 days.
- Currently a buyers market
Philadelphia, PA in a Nutshell
Philadelphia, PA is the largest city in Pennsylvania. It is surprisingly not the capital of the state—that title belongs to the city of Harrisburg.
The weather in Philadelphia is warm and sometimes humid during the summer and fall. Meanwhile, it can drop to sub-zero temperatures during the winter and early spring months.
The current population of Philadelphia stands at around 1.6 million. Most people usually have jobs in the healthcare, education, and retail industries when living in Philadelphia.
Philadelphia has some of the most walkable streets in the country. There are many public transportation options, so, Philadelphia is considered an urban city.
Public schools in Philadelphia are accessible from residential areas. Most public schools in the city have 80% score and above. There are around 500 public schools and 300 private schools in the city.
The Real Estate Situation in Philadelphia, PA
The real estate market of Philadelphia is quite dynamic in its own way. The median price of homes in Philadelphia costs $241,000. This median price is higher for both the state of Pennsylvania and the United States itself. The average square foot prices of properties in Philadelphia cost around $200.
Kensington, East Girard Avenue, East Norris Street, and Port Richmond are the best neighborhoods in Philadelphia. The greatest properties in town are in the downtown and southern portions of the city.
On average, it takes 50 days for most properties to get off the market. But, great homes usually sell in an average of 11 days. Realtors are selling around 800 to 1,900 homes every month. Sales usually peak during the summer and fall months. The worst time for the market is during winter.
Most houses in Philadelphia were constructed before 1940. Only around 6% of houses in Philadelphia were built from 2000 to the present.
The average rent in Philly is about $1,400 a month. Owners and renters in the city are on equal ground, as they make up around 50% of each other.
Around 13% of homes in Philadelphia are vacant. This gives buyers ample room for choices and some real estate shopping. Appreciation rates are what you would expect in an urban environment, at a 7% average annual increase. Since 2000, the cost of homes in Philadelphia have already increased a whopping 180%. This makes Philadelphia a place of high appreciation rates as opposed to other cities in the country. Imminent rising prices often mean that buyers should buy the property if the opportunity arises.
Final Thoughts
With all this data said, Philadelphia, PA is definitely a buyer’s market. The city is currently experiencing an oversupply in properties. At least 14% of homes in Philadelphia are subject to price drops. On average, a buyer can buy a property in Philadelphia for 2% lower than the asking price.
The real estate market is fluid and there will surely be some changes moving forward, but for now, buyers should jump in before the tides change!
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