Philadelphia Emerges as a Top Housing Market to Watch in 2024

The National Association of Realtors has identified the Philadelphia region as one of the top 10 housing markets poised for significant growth in 2024. This recognition is based on pent-up demand from both buyers and sellers, marking a shift from two years of subdued activity in the real estate sector nationwide.

Factors Contributing to Philadelphia's Ranking:

1. Pent-Up Demand: After a period of subdued activity, the housing market in the Philadelphia metro area is expected to experience increased activity, driven by pent-up demand from both buyers and sellers.

2. Mortgage Interest Rates: Economists anticipate a continued drop in mortgage interest rates in the coming year. This is expected to attract more buyers who were previously priced out of the market and motivate homeowners with lower rates to consider selling and moving.

3. Affordability: In October, the Philadelphia region had twice as many properties affordable for first-time homebuyers compared to other metro areas. Additionally, 44% of homeowners in the region have lived in their properties longer than the national average of 17 years, indicating a potential surge in listings if market conditions improve.

4. Geographic and Economic Factors: The Philadelphia region's relative affordability, its strategic location between New York and Washington, and its abundance of walkable communities, jobs, and recreation contribute to its appeal and potential for real estate growth.

The National Association of Realtors considered ten factors when compiling the list of top markets for 2024. Philadelphia scored similarly or higher than the national average in areas such as the share of buyers returning to the market with lower mortgage rates, the affordability of median-priced homes, home price growth, and job growth.

While Philadelphia performed well in several key areas, it lagged behind the national average in wage growth and experienced a higher violent crime rate in 2022. However, industry experts express optimism, citing the city's desirability, job market, and anticipated improvements in safety under a new administration.

Source: Guaranteed Rate as of 12/26/2023

Market Predictions for 2024

Industry experts expect entry-level buyers, who have been on the sidelines due to high interest rates and low housing supply, to enter the market in 2024. Anticipated signs for their entry include an increase in homes for sale as more homeowners decide to sell and the continuation of lower mortgage rates.

In conclusion, The Philadelphia region's inclusion in the top 10 housing markets to watch in 2024 reflects its potential for growth, driven by a combination of factors such as affordability, geographic advantages, and expected improvements in mortgage interest rates. As the market prepares for a more active year, both buyers and sellers may find new opportunities in this emerging real estate landscape.