A significant chunk of homes in the Philly metro are more valuable than ever, but home values in general are still below their pre-bubble peak, according to a new report by real estate group Zillow.
The current median home value in the Philly metro is $218,500, which is up 4 percent over the past year. In fact, 30.1 percent of all homes in the Philly metro are more valuable than ever before, according to Zillow, whose home value index includes the value of all single-family residences, condos, and coops.
But the current median home value is still 5.2 percent lower than the bubble peak in September 2006, when the median home value was $230,600.
Compared to the rest of the U.S., Philly’s real estate market has some catching up to do. The Zillow report found that almost half of the largest U.S. housing markets have surpassed their peak home values hit about a decade ago. Home values in San Francisco, for example, are 22.7 percent above their pre-bubble housing peak. In Seattle, they’re 18.6 percent above.
Still, with nearly a third of homes more valuable than ever before, there are much fewer homes for potential buyers to choose from, making the real estate market ripe for bidding wars and heavy competition. Zillow found that there are 15.2 percent fewer homes on the market to choose from.
A separate report, which only included single-family homes, also found that housing inventory in Philly proper is at its lowest point ever.
“The more pressing issue is abnormally low inventory, which is translating into an extremely competitive environment for home shoppers,” said Zillow Chief Economist Dr. Svenja Gudell in a statement. “Bidding wars and homes selling for over asking price have been common themes in many markets this summer, and continued competition in the face of limited supply will only continue to push home values up going forward.”
There is good news, though, for potential homebuyers. September and October tend to see more homes come to the market, said Gudell, so competition may be less fierce then.