Rising Mortgage Rates Fail to Cool Area’s Hot Residential Real Estate Market

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rows of houses
Image via Unsplash.
The rise in residential mortgage rates hasn't seemed to cool the hot market of area home sales.

Despite rising mortgage rates (reaching four percent for the first time in two years), home prices locally and nationally continue to soar. Stacker covered the rate’s trending status and its inability to pop the local real estate bubble.

Real estate platform ZeroDown put together a weekly real estate market report for Philadelphia using Redfin data for the four weeks ending Jan. 30.

The median sales price in the Philadelphia metro area over that period was $251,738 — a 6.9 percent year-over-year increase. This puts the median sales price per square foot at $185, a 10 percent increase compared with the same period last year. The sales-to-list-price ratio was 0.98, the same as last year.

Meanwhile, 32.6 percent of homes sold with price drops in Philadelphia, which represented a 1.5 percent one-year increase.

There was a slight drop in the speed at which houses are sold, with 37.5 percent of inventory being off-market in two weeks, compared with 38.6 percent last year.

Finally, the Philadelphia metro area has 11.1 months of supply, which is 0.9 months less than a year ago.

More detail on how rising mortgage rates are having little effect on Philadelphia-area real estate is in Stacker.

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