Pennsylvania Real Estate Market Trends

Dated: February 20 2024

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So, How is the Real Estate Market in Pennsylvania?

Swell! Home values in Pennsylvania rose by 27% in the last 5 years. Home sales decreased by 18.4% in September 2023 YoY despite the mortgage rate climbing to 7.84%! So, Pennsylvania’s housing market remains resilient, and in demand

.Pennsylvania Real Estate Market Statistics

  • Average Home Prices: The average median home price in Pennsylvania is $274,600, up by 3.5% YoY. In 2024, experts predict the median sale price will increase due to the tight inventory. Currently, the sale-to-list price ratio is at 99.3%, with a decline of 9.0% YoY compared to September 2022.
  • Home Sales: As per September 2023 data, home sales decreased by 18.4% YoY! In September 2023, 10,698 homes were sold, down from 13,107 in September 2022.
  • Average Rent Prices: Rental costs vary statewide. An average tenant in Miami pays $1,531, while the one living in Philadelphia pays $1,925.
  • Median Days on Market: The median days on the market for homes for sale was 27 days, up by 8 days YoY.
  • Pending Sales:  The number of homes for sale shrank by 18.4% YoY compared to 2022. Currently, there are 37K homes for sale in Pennsylvania.
  • Months of Supply: The average months of supply is 2 months. Pennsylvania’s inventory isn’t as squeezed as the national housing market.

Pennsylvania Housing Market Predictions 2024

 

Pennsylvanians have survived the shockwaves of skyrocketing mortgage rates and rising home prices of 2023. Here’s what we predict for Pennsylvania’s housing market:

  1. Home Sellers Will Return to the Market in 2024: Sellers who chose the sidelines in 2023 will come back. Especially those who can’t avoid new jobs or want to move to a cheap place. Whitney, the analyst who predicted the 2008 financial crisis accurately, has forecasted that baby boomers looking to downsize will also add up to 30 million housing units. Yowaza!
  2. Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the softening labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. We think the rates will remain above 6%, but they will stabilize in the second half.
  3. The Number of Home Buyers Will Rise: The historically high interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The easing inflation and stabilizing rates will bring back house hunters.
  4. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across PA YoY, reaching $402K in September 2023. Experts predict home prices will continue to rise until the low supply-high demand dynamic changes.
  5. New Home Construction Sales Will Increase: NAHB predicts that new house building starts will increase by 6% in 2024. This increased builder confidence is due to low borrowing rates, a robust economy, and rising home values.
  6. iBuyers Will Continue to Make Lowball Offers: iBuyers offered 104.1% of market value in 2021. They offered 86% in 2022 and around 70% in 2023.
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Robert Acuff

As a seasoned real estate professional Bob Acuff stands out as a distinguished leader in the industry, bringing unparalleled expertise and a wealth of achievements to every transaction. With a passio....

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