The current median home sale price of $307,300 is stable and rising steadily at 5.4% YoY. Moreover, homes spend only 26 days on the market. This indicates that the Pennsylvania real estate market is pretty much competitive.
The average months of home supply are 2 months. A market with fewer months of supply indicates a seller’s market. The number of homes sold was up 10.8% year over year. There were 12,210 homes sold in July 2024, up from 11,015 homes sold in July last year.
Despite the competitive nature of the market, recent developments, such as the NAR settlement, have caused some hesitation among sellers, leading to concerns about selling prices and agents’ compensation.
The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed the suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates. Here are some tips for you to sustain in the market:
- If You Are a Home Buyer: Homes for sale (39,585) are growing at 8.4%. Along with this, the expected drop in home prices can benefit you. The low interest rates at 6.25% to 6.62% are now in buyers’ favor. Also, you can request for seller concessions.
- If You Are a Home Seller: You can lock in Pennsylvania’s current high home prices. The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sales before prices potentially drop.
So, How Is the Real Estate Market in Pennsylvania?
Balanced! The number of homes for sale increased by 8.4% in July 2024 compared to the previous year. It’s the 4th consecutive month that the housing market has witnessed such growth. Other important facts are:
- Median Days on Market: The median days on the market for homes for sale are 26 days, up by 1 day YoY. This suggests a high demand in the Pennsylvania real estate market.
- Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 8.4%. There are 39,585 homes for sale in Pennsylvania, with an average supply of 2 months.
- Average Home Prices: The median home price in Pennsylvania is $307,300. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 99.8%, down by 0.34 pts YoY.
- Home Sales: As per July 2024 data, home sales increased by 10.8% YoY! 12,210 homes were sold, compared to 11,015 last year.
- Average Rent Prices: Rental costs vary statewide. The median rent is $1,550 with a YoY change of +$50.
Data Sourced From: Redfin
Why Is Pennsylvania a Seller’s Market Now?
The Pennsylvania real estate market has a balanced inventory of homes for sale. Besides this, a steady increase in median home prices favors home sellers. Homes spend only 20 days on the market which depicts the competitive market. Let’s look at some more facts:
- Fewer Days on the Market: Homes are spending only 26 days on the market before going under contract. This is visible in metro cities like Reading and York where the average days on the market are between 8 to 12 days.
- Multiple Offers on Homes: Reading has got 88 and York got 83 in Redfin’s Compete Score. It means the housing market in Pennsylvania is very competitive. This suggests that many homes receive multiple offers and sell within 7 to 10 days.
- High Sale-To-List Price: The average homes sell for about 1% above the list price whereas hot homes sell for about 4% above the list price. The average sale-to-list price ratio in Lower Allen is 111.4%.
- Homes Sell Above List Price: On average, 39.2% of homes were sold above list prices. However, in July, 30.6% of homes experienced price drops, compared to 25% last year. This trend indicates a gradual shift toward a buyer’s market.
Your Path to Homeownership Starts Here🏡
Select Your Loan Type
-
New Home Purchase
-
Mortgage Refinance
-
Cash-out Refinance
Pennsylvania Housing Market Predictions 2024
Here are the predictions for Pennsylvania’s housing market in the remaining months of 2024 and 2025:
- Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
- Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across Pennsylvania YoY, reaching $307k in July 2024. Cities like Lower Allen and York have experienced a 21.1% and 21.4% increase, respectively, in median home sale prices YoY. It’s expected to grow even further.
- New Home Construction Will Increase: As per Building Permits Survey, 14,600 new private housing units were authorized, in July 2024. Pennsylvania’s housing market’s high demand will be served with the new constructions.
- iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.
Bonus Predictions: Buyer Broker Commissions Will Be Zero!
In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:
- Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
- Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
- Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
- Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.
Curious what the NAR lawsuit is about?
Check out our video to find out why NAR chose to settle and eliminate the buyer-broker compensation rule.
Is the Housing Market in Pennsylvania Going to Crash?
A housing market crash in the Hoosier State is unlikely.
Pennsylvania’s cost of living is 4% lower than the national average. The average cost of living for one person in Pennsylvania is $2,234.
Pennsylvania has a high median household income of $68,927. Pennsylvania’s unemployment rate was 3.4% in July, lower than the national rate of 4.3%.
The state benefits from a lower cost of living, a high median household income, and a strong job market. These factors contribute to housing market stability, making a crash in Pennsylvania unlikely.
2024: Is it a Buyer’s or Seller’s Market?
Pennsylvania real estate market favors sellers in 2024. (And buyers, too!). The market is expected to lean more in favor of the buyers in the latter half of 2024.
Home prices are rising modestly, and the number of homes for sale has increased by 8.4% YoY. Buyers now have more choices. With mortgage rates around 6.42%, buyers also have more purchasing power.
Consequently, more homeowners are likely to list their homes on Pennsylvania MLS. The 5.5% increase in new active home listings in Pennsylvania has brought back home shoppers.
So, whether you are looking for a condo in Chesterbrook or a single-family home in Middle Town, you will find your dream home in the coming months.
Find Your New Home With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest home listing sites in the US. Find condos, townhouses, co-ops, and other homes for sale on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.
Frequently Asked Questions about Pennsylvania Real Estate Market
When will the housing market crash in Pennsylvania?
Not for the next few years. Pennsylvania's housing market will not crash in 2024. Despite modest home prices, Pennsylvania's market is afloat.
What are the real estate housing market 2024 predictions for Pennsylvania?
2024 is a balanced market with 2 months of supply. Here's our forecast for Pennsylvania's housing market in 2024's latter half: (1) Home buyers will return to the market, (2) Housing inventory will increase, (3) Property prices in Indiana will increase marginally, (4) Buyer agent commissions will be zero!
Are home prices dropping in Pennsylvania?
Not yet! The property prices in Pennsylvania are currently increasing at a good pace of 5.3% YoY. However, you can still find the cheapest places to live in Pennsylvania. You can find the value of your favorite homes on Houzeo's home value estimator.
Is it a good time to buy a house in ?
Yes! Currently, the homes for sale are at around 39K, up by 8.4% YoY. Low home prices and low mortgage payments have made buying a home affordable. More buyers will return in the second half of 2024, so we'd recommend you buy a house now.
