The latest housing numbers for the Philly ‘burbs are in, and at first glance it all sounds pretty good: The median house price in the suburbs increased by 13.6 percent in the second quarter of the year, a record-high quarterly jump.
The median house price in the Philadelphia region is now $244,000, up from $213,000 in the first quarter. In addition, houses are selling at a much faster clip, falling from an average of 88 days on the market this past winter to 54 days by June.
All of that is good news for the suburban housing market, which has struggled to catch up to its pre-recession levels compared to Philly proper. But it doesn’t necessarily mean the region is on its way to full recovery.
Kevin Gillen of Drexel University’s Lindy Institute writes in his latest report, “While both suburban price appreciation and sales volume set new records this quarter, there have been other recent quarters where they have done so as well, only to subsequently slump again.”
Here’s how Philly’s housing market has fared since 2012 compared to the region as a whole.
Still, Gillen suggests that despite his call for caution, things are looking up for the suburban housing market. Like with Philly, housing inventory throughout the region is also at seasonal all-time low. At the current rate, it would take 4.2 months to sell off every house in the surrounding counties.
- Philadelphia Regional Housing Report: Q2 2017 [Lindy Institute]