Pennsylvania
Housing Market
The landscape of Pennsylvania’s housing market evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across Pennsylvania. Our report offers real-time insights to help you make informed decisions.
Overview
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Demand
Buy or Sell
Market Insights
MigrationPennsylvania Housing Market Overview
Home prices in Pennsylvania show a growth of 8.1% YoY as of January 2025. The steady increase in home prices indicates the strength of the housing market. While prices in Pennsylvania are climbing, the median home value in the state ($286,600) is 31.5% lower than the national average. The number of homes sold has increased by 5.8% YoY.
You can also check the market competitiveness through median days on the market. Homes in Pennsylvania now spend 45 days on the market before going under contract. All these metrics collectively indicate changes in the Pennsylvania housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Homes in Pennsylvania now spend 45 days on the market before going under contract. All these metrics collectively indicate changes in the Pennsylvania housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You get less negotiation power as the mortgage rate is over 7%. However, median home prices in Pennsylvania are far below the national average, which means affordable housing is possible in PA. If competition is low and inventory increases, you can plan a purchase.
- If You're a Seller: You can profit from the growing prices and high demand in PA. The 8.1% in home prices and 5.8% increase in the number of homes sold signals more opportunities to make a profit while selling a house in Pennsylvania.
Pennsylvania Housing Supply
Pennsylvania's housing supply will only grow as new construction expands. Experts predict moderate inventory gains in 2025. However, high mortgage rates will shrink home sales. Homes for sale in Pennsylvania have increased by 4.4% year over year in January 2025. Currently, there are 31,703 for sale houses in Pennsylvania. The market leans towards sellers with only 3 months of supply. Fewer months indicate a seller’s market and more months indicate a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: You have more competition as home supply is very tight. The 98% sale-to-list price ratio suggests that you could have an upper hand in negotiation. The growth in inventory level and the low median sale price mean you can still buy your dream home in PA. If You're a Seller: With 3 months of supply and growing median home prices, you’re in luck. Act fast and sell your home before more supply hits the Pennsylvania real estate market. Rising inventory could lower demand and lead to fewer offers. To attract buyers, focus on staging and marketing your home effectively.
What Does It Mean for Home Buyers and Sellers?
Pennsylvania Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, the percentage of homes selling above and below the list price were almost the same — 25.9% of homes sold above the list price, while 24.7% of homes sold below the list price. The 98% sale-to-list price suggests negotiation opportunities for both buyers and sellers.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: The current housing market in PA has a few metrics that lean in your favor — such as the 24.9% of homes with price drops and the relatively low median home value. However, high mortgage rates could make things tough for you. If You're a Seller: You'll make a good profit if you sell now. With the 8.1% increase in home prices, a 98% sale-to-list price ratio, and limited supply, the negotiation power lies in your hands. Wait till summer, and you’ll experience higher demand and more bidding wars for your home.
In January 2025, the percentage of homes selling above and below the list price were almost the same — 25.9% of homes sold above the list price, while 24.7% of homes sold below the list price. The 98% sale-to-list price suggests negotiation opportunities for both buyers and sellers.
What Does It Mean for Home Buyers and Sellers?
Is it a Buyer's or Sellers's Market in Pennsylvania?
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Buyer’s Market
Seller’s Market
Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.
Is it a Buyer's or Sellers's Market in Pennsylvania?
As of January 2025, home sellers in Pennsylvania have an advantage due to increased prices and a limited supply of homes. For buyers, home sale prices are affordable but competition is high.
The current mortgage rate is close to hitting 7%, which may reduce buying power in the state-wide real estate market. Additionally, only a 1.5% rise in new home listings does not provide many options to new home buyers in Pennsylvania. However, these housing market trends vary significantly across Pennsylvania. Check your local real estate trends before you decide to invest.
Pennsylvania Housing Market Insights
The housing market in Pennsylvania is highly competitive compared to the nationwide market. Pennsylvania property prices are rising at a rapid rate. The median home price in Pennsylvania ($286,600) is 31.5% lower than the national median of $418,489. Inventory trends indicate a growing availability of for sale homes in Pennsylvania, though at a slow pace. Currently, there are 31,703 homes available in the Keystone State.
Housing markets like Blandon show high competition. Home prices have grown at 50% YoY with a sale-to-list price ratio of 101% which are clear pointers to a seller’s market. Sinking Spring shows an even higher sale-to-list price ratio of 108%. Overall, PA’s housing market favors home sellers. If you’re buying a house in Pennsylvania, you can still find affordable houses as the median home value is relatively low. You can also wait till PA home prices drop further.
Housing markets like Blandon show high competition. Home prices have grown at 50% YoY with a sale-to-list price ratio of 101% which are clear pointers to a seller’s market. Sinking Spring shows an even higher sale-to-list price ratio of 108%. Overall, PA’s housing market favors home sellers. If you’re buying a house in Pennsylvania, you can still find affordable houses as the median home value is relatively low. You can also wait till PA home prices drop further.
Nationwide Migration Trends
Last year, Pennsylvanians moved out of the state to relocate to states like Florida, New Jersey, New York, Ohio and Virginia. Over 30,000 people relocated from Pennsylvania to Florida over the last five years. There is also a conspicuous inbound trend, with PA gaining almost 260,000 new residents in 2023-24. The new residents primarily came from New York, New Jersey, Maryland, and California. Pennsylvania’s affordable housing is particularly appealing to families.
This migration pattern reflects the broader differences in the national cost of living index. The cost of living and housing costs in Pennsylvania are lower than the national average, while utilities are 6% higher.
This migration pattern reflects the broader differences in the national cost of living index. The cost of living and housing costs in Pennsylvania are lower than the national average, while utilities are 6% higher.
Frequently Asked Questions
How have house prices in Pennsylvania changed over the past year?
Home sale prices in Pennsylvania have continued to rise over the past years, driven by high demand and low inventory. Prices have increased at an annual growth rate of 8.1%, with multiple regions seeing large double-digit percentage growth. You can check your home’s fair market value with a free home value estimator to know where you stand.
How is the housing market right now in Pennsylvania?
Pennsylvania’s housing market shows an upward trajectory for home prices and inventory. Home sales may remain low as long as mortgage rates remain over 6.5%. Scranton and Reading are among the hottest real estate markets in Pennsylvania, with price gains of 34% and 38% respectively. Experts forecast continued growth in housing demand in 2025, which will keep prices up.
What’s the average house price in Pennsylvania?
The average home price in Pennsylvania depends on house type, size, and local market conditions. It typically ranges from $287,200 for condos to $308,200 for single-family homes. If you plan to buy, you can find cheap homes for sale in PA that fit your budget.
What is the Pennsylvania housing market forecast for 2025?
The Pennsylvania real estate market is expected to yield high profits to home sellers. Rising median home prices and mortgage rates may make it hard for buyers to find affordable homes in Pennsylvania. Nevertheless, demand and supply for homes will continue to flourish due to population growth in the state.
Is this a good time to buy a home or sell a home in Pennsylvania?
Check real estate trends for housing prices and inventory in your city. Sellers can benefit from high demand and rising prices. However, when mortgage rates are stable and there is plenty of housing inventory, it's the best time to buy a house in Pennsylvania.
What is the cheapest place to buy a home in Pennsylvania?
Sharon, PA, has housing costs 83.4% lower than the national average. The city's median home value is only $66,570. Other affordable cities include Johnstown, Oil City and Altoona. You can compare costs of living, housing costs and median home prices to narrow down the cheapest places to live in Pennsylvania.
What are the best areas in Pennsylvania to buy a home?
Lancaster, State College, and Philadelphia are among the best areas to buy a home in Pennsylvania. Assess factors like community well-being score, median household income and safety index to select the best place to live in PA.
How can I list my home for sale in Pennsylvania?
You can list your home for sale with a Flat Fee MLS Pennsylvania listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in Pennsylvania?
The average mortgage rate for buyers in the PA housing market fluctuates between 6% to 7%. It depends on the market and your credit score. Always check current rates with lenders before you apply for a mortgage.
What is the cost of living in Pennsylvania?
The cost of living in Pennsylvania is 4% lower than the national average. However, housing alone is 30% higher than the national average. Utilities are 7% higher, and basic necessities like food, clothing and groceries cost around the same as the rest of the country. You can use our free Pennsylvania cost of living calculator to know more.
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