Philadelphia Condo Market 2023 - 2024

Are you curious about the current state of the Philadelphia condo market and what the future holds? This comprehensive blog post covers recent statistics, emerging trends, and key developments to keep an eye on. Our audience includes potential buyers and sellers of Philadelphia condos, real estate professionals, and interested individuals from the greater Philadelphia area and beyond.

Introduction

The Philadelphia condo market has seen shifts in 2024's first quarter compared to the previous year. This post explores how the market is performing, which neighborhoods are thriving, and what kinds of developments are on the horizon. We also provide insights into luxury and new construction condos, as well as factors affecting the market.

Market Summary

In the first quarter of 2024, Philadelphia saw an 8.3% decline in condo sales compared year over year to the first quarter of 2023, with a 4.6% drop in median prices. The average time to sell a condo decreased by 30.4%, while supply, measured in months of inventory, increased by 20.1%. Despite this, there were 9.1% more condo sales in quarter one 2024 compared to the fourth quarter of 2023, with prices declining slightly (1.6%). Average price per square foot ($331) remained unchanged, though the days on market increased by 30% and the months of supply rose by 20.1%.

The combination of higher supply and lower demand has led to a roughly five-month inventory and softened prices. With mortgage rates remaining high, buyers should find good opportunities. See the Market Statistics section for more data.

Luxury Condo Market

Luxury condos, those selling above $1,000,000, experienced a 41% decrease in sales in Q1 2024 compared to Q1 2023, with only 13 sales. The 13 sales are an increase of one sale compared to Q4 2023. As of April, there are 102 luxury condos on the market, reflecting a 14-month supply, making this a buyer's market. Bargaining for lower prices is likely, particularly in Q3 2024 if the inventory remains steady.

Value Condo Market

The value condo market, units costing less than $300,000, had sales in the first quarter of 2024 (137) that were off 8.1% from first quarter of 2023 (149). There were 10 more sales in the first quarter of 2024 than in the fourth quarter of 2023, a modest improvement. There are currently 195 units for sale in this segment, which is slightly less than 4 months’ supply. This is a slight seller’s market so bargaining for lower prices will be difficult.

New Construction Condos

In the past year, 113 new construction condos were sold in Philadelphia, making up 8.1% of the market. Most sales occurred in Q2 and Q3 of 2023. Sales fell by 62.2% in Q4 2023 and Q1 2024. Luxury developments with units available include 2100 Hamilton, Arthaus, and The Laurel, currently offering 26 units combined. Upcoming projects include an extension of Freeman Auction House at 1810 Chestnut St, adding 19 condos.

Factors Affecting the Condo Market

  • Mortgage Interest Rates: Rates hovering near 7% have dampened demand and limited the market's reach. Many simply decide to remain in their current homes.
  • New Apartment Construction: An ongoing surge in apartment construction in and around Philadelphia has contributed to a more competitive condo market. See this Hapco article or this Inquirer article for more detail on these developments.

Top Five Neighborhoods for Condo Sales

Market Statistics for Condo Sales in Philadelphia

April 2023 to March 2024:

  • Condos Sold: 1378, 115 per month
  • Percentage of Sales: 9.9%
  • Median Price: $317,000
  • Median Days on Market: 31
  • Median Sold Price/Original Price: 96.9%
  • Average Price/Sq Ft: $370
  • Months of Supply: 4.39
  • New Construction Sales: 113

Q4 2023:

  • Condos Sold: 252, 84 per month
  • Percentage of Sales: 7.9%
  • Median Price: $315,000
  • Median Days on Market: 30
  • Median Sold Price/Original Price: 96.2%
  • Average Price/Sq Ft: $331
  • Months of Supply: 4.06

Q1 2024:

  • Condos Sold: 275, 92 per month
  • Percentage of Sales: 9.7%
  • Median Price: $310,000
  • Median Days on Market: 39
  • Median Sold Price/Original Price: 96.4%
  • Average Price/Sq Ft: $331
  • Months of Supply: 4.9

 

Charts and Graphs

 

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