PENNSYLVANIA — The Pennsylvania housing market continues to grapple with a challenging inventory landscape and robust consumer demand, resulting in sustained high median home sale prices. As of October 2023, the median home sales price was reported at $217,537, demonstrating a slight increase compared to September and a 1.5% year-over-year rise, according to a report prepared for the Pennsylvania Association of Realtors®.
“The median sales price has risen 34% over the past five years,” stated PAR President Al Perry. “Homes have really appreciated in value in the past several years, and we don’t expect to see them falling significantly with the tight inventory most markets are experiencing.”
Inventory levels remained relatively stagnant in October compared to the previous month, with 36,839 listings on the market. However, this figure represents more than a 60% drop from just five years ago and a decline of over 21% from 2022.
“The lack of available homes continues to be an issue,” Perry noted. “These record-high home prices and tight inventory, combined with 20-year-high mortgage rates, have especially affected first-time homebuyers.”
Research by the National Association of Realtors® underscores this point, showing that first-time buyers accounted for 32% of all homebuyers last year, up from the previous year’s historic low of 26%, but still below the average of 38% since 1981.
Home sales in Pennsylvania experienced a slight dip in October, totaling 9,975, down from September and marking a roughly 20% year-over-year decrease.
Amid these challenging circumstances, homebuyers are increasingly relying on the expertise of Realtors® in their sales transactions. “Realtors® are key to guiding their clients through the process, helping prioritize their needs, coordinating home inspections and appraisals, and serving as their ally,” Perry added, highlighting the crucial role of real estate professionals in navigating a complex and competitive housing market.
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