How much does it really cost to buy a house in Philadelphia in 2023?
This is a question that many potential home buyers are asking, especially in today’s super competitive market.
In this article, I am going to break down the true cost of buying a house in the Philly Metro here in 2023. I will cover everything from the median home price to the down payment requirements, to the closing costs. I will also share a story of how I helped another client achieve their homeownership dream.
The first thing you need to know is the median home price. According to the largest data from Redfin, the median home price in the Philadelphia Metro in September 2023 is $260,000. This means that half of the homes sold in the Philly Metro over the past year sold for more than $260,000 and the other half sold for less.
The median $260,000 is down slightly from a year ago when the median home price was $263,000. But it is still well above the median home price of only $195,000 in 2019.
The Philadelphia Metro includes the city of Philadelphia and the surrounding suburbs in Pennsylvania, New Jersey, and Delaware.
Now remember, the median home price varies throughout the metro area, with higher prices in more affluent suburbs and lower prices in the city and in the less affluent suburbs.
For example, here are the median home prices in some of the most popular suburbs of the Philly Metro.
Chester County: $425,000
Bucks County: $390,000
Montgomery County: $375,000
Delaware County: $350,000
Camden County: $130,000
Of course, the actual cost of your home will vary depending on its size, location, and the condition. But the median home price gives you a good starting point for your budgeting.
Let’s talk about the down payment. The more you can afford to put down on a home, the lower your interest rate and your mortgage payment will be. So, if you wanted to do 20% down on a $260,000 home, you would need to have a down payment of $52,000.
There are many programs available that allow you to buy a home with a much smaller down payment, like an FHA or a VA loan. There are even conventional loans available now with as low as 3% of the purchase price.
In addition to the down payment, you are also going to need to pay your closing costs. Closing costs are fees that are associated with buying and selling a home. They can include things like title insurance, appraisal fees, and loan origination fees. On the buyer side, closing costs typically range from 2% to 5% of the purchase price of the home. So, for a $260,000 home, you can expect to pay between $5,200 and $13,000 for closing costs.
I recently helped a client buy her first home. She was a single mom. She was really worried that she would not be able to afford to buy a home of her own. But, together with my preferred lender, we were able to show her way to get off of the rental roller coaster and start building her own equity in her own home with just 3% down. We found her a great home within her monthly budget. She is now happily living in her new home with her son, and she is so happy that she explored the opportunity to own her own home. Now, she does not have to worry about her rent increasing every single year. Buying a home is a big financial commitment, but it is also a very rewarding experience.
If you are thinking about buying a home in Pennsylvania or over the river in New Jersey, I encourage you to reach out to me. I can help you understand the true cost of buying a home. I can work with you to find a lender and a home that is right for you.
I would love to hear your comments, too. What are your biggest fears or questions about this process? Schedule a free consultation with me today and learn more about buying a home. Call or text me at the number you see below.
I love helping people just like you find their dream home. Thanks for reading. Follow my blog for more helpful videos about buying and selling homes in the Philadelphia Metro. And I’ll talk to you really soon.
Dawn Damico: 215.962.9307
damico.dawn@gmail.com
