Sky-high home prices put pressure on buyers in Philadelphia region

PHILADELPHIA (WPVI) -- There's more bad news for homebuyers. Prices remain high across the country, but especially in the Philadelphia region, where realtors say buyers are facing fierce competition both in the city and, increasingly, in the suburbs.

"Philadelphia's such a stable region that is just well established, so it's a very competitive real estate market," said Paul Carson, broker and owner of Philly Mortgage Brokers.

From Phoenixville to Downingtown, home prices are holding strong, sitting above the national average.

Data from the 6abc price tracker shows that home prices in the Philadelphia area are 4.4% higher than the national average.

Local realtor Deanna Albanese, of Long & Foster Real Estate, says that stability is part of what keeps prices high.

"We are stable. I think our economy is very stable compared to other parts of the country as well. And though the appreciation has slowed in recent years, it's still remaining steady, just at a slower rate," Albanese said.

Albanese spent the day lining up showings for multiple buyers and says the real competition is now happening outside the city.

"We still have bidding wars. If a home is priced well and shows well, especially with minimal repairs to be made, buyers are really looking for that home that's move-in ready," she said.

Even with elevated prices, she says buyers are still willing to compete because the Philadelphia market tends to hold its value better than more volatile regions.

"There are parts of the country where, historically, that is a problem with cycles in the market. There are places where, if you overpay drastically in one of those upswings, you could find yourself underwater. That tends to be less of a problem here in the Philadelphia metro," Albanese explained.

Carson adds that deciding when to buy isn't just about watching the market; it's about knowing your own financial situation.

"What's your personal affordability in terms of your income, what can you afford, and is your personal economy stable? Am I safe and sound, do I know I'm going to be in the area for a while?" he said.

To compare home prices in Philadelphia and around the country, head to 6abc.com/pricetracker.