09 Sep PA Housing Market Update
Pennsylvania Housing Market Overview: Real Estate Trends in 2024
The real estate market in Pennsylvania has been showing steady growth in 2024, reflecting broader trends seen across the U.S. In July, home prices in Pennsylvania experienced a year-over-year increase of 5.3%, signaling a strong market environment. Simultaneously, the number of homes sold rose by 11%, and the total number of properties available for sale increased by 8.8%.
This rise in home prices and sales indicates a thriving real estate market, where demand continues to meet and exceed expectations. For both buyers and sellers, understanding these trends can provide insight into making informed decisions about their real estate investments.
What Do These Real Estate Trends Mean for Buyers and Sellers?
The current rise in home prices is often a sign of a robust housing market. When prices increase steadily, it indicates strong demand, which can lead to faster sales and potentially higher returns for sellers. For buyers, rising prices may make it more challenging to find affordable options, emphasizing the importance of acting quickly in competitive areas.
As of now, the median home price in the United States sits at approximately $307,000. In Pennsylvania, prices are trending upward, reflecting this national movement. Real estate investors and homebuyers should be aware of how the local market is shifting, as Pennsylvania continues to be an attractive option for those looking to purchase property.
Pennsylvania Housing Supply: Are There Enough Homes for Sale?
Housing supply plays a crucial role in the overall health of the real estate market. In July 2024, Pennsylvania had 39,745 homes available for sale, which marks an 8.8% increase compared to the previous year. This suggests that more sellers are entering the market, creating more opportunities for buyers. Additionally, 13,913 new homes were listed, reflecting a 5.5% year-over-year increase in new inventory.
Despite this growth, the average months of housing supply in Pennsylvania remains at just two months. This means that if no new homes were listed, it would take approximately two months to sell all the available properties at the current rate of sales. This is a slight decrease from the previous year, signaling that demand is still outpacing supply in many areas.
What Does Housing Supply Mean for the Real Estate Market?
Changes in housing supply are a critical factor in determining the direction of the real estate market. A shrinking supply indicates that homes are selling quickly, often due to high demand. Conversely, when more homes are listed and inventory grows, it suggests a cooling market where buyers have more options.
Currently, the housing market in Pennsylvania is leaning toward higher demand, with homes selling relatively quickly. This competitive landscape could lead to increased home values over time, which is great news for sellers but may present challenges for buyers looking to find affordable real estate options.
Pennsylvania Housing Demand: How Competitive is the Real Estate Market?
The competitiveness of Pennsylvania’s real estate market can be measured by several factors, including how often homes sell above their asking price. In July 2024, 39.2% of homes sold for more than the listing price. While this represents a slight drop of 2% compared to the previous year, it still indicates a strong demand for homes in the area.
On the other hand, 30.6% of homes in Pennsylvania experienced price reductions, up from 25% in July 2023. This rise in price drops suggests that some sellers may be adjusting their expectations to align with current market conditions. Homes are selling for an average of 99.8% of their listing price, which is a small decrease of 0.34 points from last year. This indicates that buyers may have a little more room to negotiate, but the market remains competitive overall.
What Does Housing Demand Tell Us About Real Estate Trends?
Homes that sell above list price are typically receiving multiple offers, a common sign of a competitive market. When bidding wars are frequent, buyers need to be prepared to move quickly and potentially offer more than the asking price to secure a property. A shrinking percentage of homes selling above list price, as seen in Pennsylvania, could indicate that the market is becoming less aggressive, although it is still competitive by historical standards.
For real estate investors and homebuyers, understanding the dynamics of housing demand is essential. Knowing whether homes are selling above or below list price helps shape expectations and strategies when entering the market.
U.S. Migration Trends: Where Are Homebuyers Moving?
Migration trends across the United States have a significant impact on regional real estate markets, including Pennsylvania. Between June and August 2024, 26% of U.S. homebuyers were searching to move to a different metro area. The top states people were looking to move to included Florida, North Carolina, South Carolina, Tennessee, and Arizona. In contrast, the top states people were leaving were California, New York, Illinois, Massachusetts, and Washington.
Among the major U.S. metro areas, Sacramento was the most popular destination for homebuyers seeking to relocate. Other top relocation destinations included Sarasota, Myrtle Beach, Orlando, and Cape Coral. On the flip side, Los Angeles saw the highest number of people searching to leave, followed by New York, San Francisco, Seattle, and Washington.
How Do Migration Trends Affect Real Estate Markets?
Migration patterns are crucial for understanding where demand for housing is growing or shrinking. Areas that attract more new residents typically experience rising property values and increased competition for homes. In contrast, regions losing residents may see slower real estate markets and potentially lower prices.
For Pennsylvania, staying informed on these national trends can help buyers and sellers anticipate changes in the local real estate market. With more people moving out of traditionally expensive markets like California and New York, Pennsylvania could continue to see an influx of buyers seeking more affordable housing options.
Final Thoughts on Pennsylvania’s Real Estate Market
In 2024, the Pennsylvania real estate market remains strong, with rising prices, healthy demand, and growing inventory. For both buyers and sellers, understanding these trends is essential to navigating the competitive landscape. While prices are increasing, the addition of more homes on the market could provide more opportunities for buyers. However, with many homes still selling above list price, the market remains competitive, especially in high-demand areas.
As migration trends show that more people are leaving costly metro areas in favor of more affordable regions, Pennsylvania’s real estate market could continue to thrive, attracting both new residents and investors looking for promising opportunities.