PENNSYLVANIA — The real estate market in Pennsylvania has seen a rise in home sales, with an 11% increase from July to August, according to a report commissioned by the Pennsylvania Association of Realtors®. Despite this, total sales have fallen by 17% compared to the same period last year, with nearly 11,700 homes sold in August.
Al Perry, the President of the Pennsylvania Association of Realtors®, indicated that the summer real estate market has been robust for home sales this year. However, he noted that the market is facing an inventory crunch, especially in the starter home price range. This challenge is shared by other real estate markets across Pennsylvania and the nation.
“The housing industry has underbuilt for more than a decade and isn’t able to meet the growing demand,” Perry explained. He further pointed out that millennials entering the home-buying phase and older homeowners choosing to stay in their homes longer are contributing to this tight market situation.
Perry also mentioned that many homeowners have been enjoying historically low interest rates over the past few years. Today, these homeowners face a difficult decision as they weigh their current rates against the significantly higher rates they would incur should they decide to trade-up for a more expensive home. “Entry-level housing sales depend on these trade-up purchases to make housing inventory available to first-time buyers,” Perry said, “Many of those trade-ups aren’t taking place in this current market.”
In terms of prices, the median home sale price in Pennsylvania saw a slight drop in August, falling to $223,131 from $225,278 in July. Despite this decrease, Perry stated that “Home prices in Pennsylvania have remained strong and are up about 5% over last year. Owning a home continues to be a great long-term investment to help build wealth.”
Perry also emphasized the importance of having a knowledgeable and experienced Realtor® during these challenging times. “Realtors®’ local market expertise and negotiation skills help ensure you get the best possible price and terms and protect your interests during the transaction,” he concluded.
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