A continuously low inventory in the Philadelphia area is causing home prices to continue growing even with a sharp decline in sales, writes Ryan Sharrow for the Philadelphia Business Journal.

The number of closed sales across the region dropped in March by 21.4 percent to 5,815 compared to the same month a year ago. Meanwhile, the median home price went up by 5.5 percent to $324,995.

Inventory in the Philadelphia area is currently 40 percent of that in March 2019. In many counties, there is less than a month’s supply. Time on the market has slightly increased to 13 days in March, up from four days twelve months prior.

Some counties in the region recorded a lower drop in sales. Bucks County’s closed home sales were 482, or down just 7.5 percent.

Montgomery County recorded 597 sales, a drop of 22.9 percent. Delaware County saw a fall of 26.2 percent and Chester County closed sales decreased by 21.7 percent. Philadelphia County fell by 27.4 percent with 1,225 closed sales.

Chester County is still the priciest in the region, with a median home sales price of $476,000 in March. That is up 4.7 percent year over year. Bucks County follows at $425,000, up 6.3 percent.

Read more about home prices in the Philadelphia Business Journal.

Philadelphia Suburbs talks about the reality of the Pennsylvania housing market.