Home price cuts and canceled contracts were less likely in the Philly region than in most major metros in April

Signs point to a stronger housing market last month in the Philadelphia region than in most other major metropolitan areas.

In the Philadelphia metro, home sales were less likely to fall through and sellers were less likely to cut their prices in April, according to two Redfin analyses of the country’s 50 most populous metropolitan areas.

Price cuts are becoming slightly less common in most of these areas, because housing supply has not kept up with stronger homebuyer demand. So sellers have an advantage. Also, more sellers are adjusting their expectations and pricing their homes more realistically to fit the market, so it’s less likely they will need to drop the price.

The market that Redfin defines as Philadelphia and Delaware Counties had the biggest seasonally adjusted decrease in price cuts from March to April.

Roughly 30% of the region’s home sellers cut their asking prices last month, down from about 34% in March. Sellers cut their prices by an average of about 5%.

In the market that Redfin defines as Montgomery, Bucks, and Chester Counties, about 22% of sellers cut their prices in April. In comparison, across the 50 largest metros, about 35% of home sellers cut their prices last month.

But the share of sellers who cut their prices increased in 21 metro areas. It rose most in the Phoenix area, reaching roughly 51% last month, up from about 48% the month before.

Almost three in five sellers in the San Antonio, region cut their asking price in April. That was the highest share of all the metros Redfin analyzed.

After San Francisco, the Newark, N.J., metro was the place least likely to have price cuts. About 15% of sellers dropped their prices last month.

When it comes to following through with home sales once an agreement is signed, the Philadelphia region also stands out.

Contracts in the market that Redfin defines as Montgomery, Bucks, and Chester Counties were among the least likely to fall through. In April, 7.5% of deals were canceled, compared with 13.4% nationally.

In this region, home sellers still have the upper hand over buyers, because there’s strong demand and not enough homes for sale. Buyers know if they back out of a deal, finding another home won’t be easy.

Sales contracts also were less likely to fall through in the market that Redfin defines as Philadelphia and Delaware Counties than nationally. Just over 10% of contracts were canceled in April.

Among the 50 most populous U.S. metro areas, the San Francisco region had the lowest share of contract cancellations in April — about 3%.

Buyers are more likely to end a deal in strong buyers’ markets, where homes are plentiful. In the Atlanta metro area, for example, almost one in five contracts were canceled in April, the highest share among populous metros.