Thinking about buying or selling a home in Pennsylvania? Understanding the Pennsylvania housing market trends is key. While prices are showing slight moderation and sales have slowed down, the increase in inventory offers more opportunities for buyers.
The market is moving toward a more balanced state, creating a more equitable environment for both buyers and sellers. Let's dive into the latest data to see what's happening.
Pennsylvania Housing Market Trends: A 2024 Update
Home Sales in Pennsylvania
September 2024 saw a slight dip in home sales compared to the previous month. According to the Pennsylvania Association of Realtors®, there were 9,538 sales, a 6.5% decrease from September 2023. While this might sound concerning, it's important to remember that the market is adjusting after a period of rapid growth. We're seeing a return to a more balanced market, which is positive news in the long run. It means buyers have less pressure to rush into offers and can possibly negotiate better terms.
Pennsylvania Home Prices: A Closer Look
The median sales price for homes in Pennsylvania in September 2024 was $295,000. This is a 3% drop from August, but still a healthy 9% increase compared to September 2023. This slight price correction suggests that while the market is cooling down, home values aren't plummeting. Instead, it's a more stable, manageable adjustment.
Housing Inventory: More Choices for Buyers
One of the most significant changes in the Pennsylvania housing market is the increase in inventory. In September, there were nearly 38,800 active listings. This represents a 3% jump from August and a whopping 28% increase since January 2024. This is the highest inventory we've seen all year, which is fantastic news for potential homebuyers. Having more homes on the market means less competition and more choices.
Market Trends: A Shifting Landscape
The combination of slightly lower prices and a significantly higher inventory signals a clear shift in the Pennsylvania housing market. We're moving away from the seller's market we've experienced over the past few years toward a more balanced market. This means buyers have more negotiating power and less pressure to make quick decisions. This level of balance can be good for both buyers and sellers. Buyers can find a home that meets their needs without feeling pressured, and sellers will have to price their homes competitively.
Pennsylvania Housing Market Data: September 2024
Here's a summary table of key data points:
Metric | September 2024 | September 2023 | Change (YOY) |
---|---|---|---|
Median Sales Price | $295,000 | $270,000 | +9% |
Home Sales | 9,538 | 10,203 | -6.5% |
Active Listings | 38,794 | 35,378 | +9.6% |
Months of Inventory | 3.97 | N/A | N/A |
Important Note: Months of Inventory is a key indicator of market balance. A 6-month supply is generally considered a balanced market. A lower number indicates a seller's market (fewer homes available), and a higher number indicates a buyer's market (more homes available). Pennsylvania's 3.97 months of inventory suggests the market is trending towards balance, but not quite there yet.
Home Price Range Analysis
Let's break down the Pennsylvania housing market by price range, providing insights into the specific trends within different segments. The data below illustrates the number of listings, sales over the past 12 months, and months of inventory for each price bracket.
Listing Price Range | Listings (Sep) | Sales (Previous 12 Months) | Months of Inventory |
---|---|---|---|
Below $125,000 | 4,570 | 13,663 | 4 |
$125,000 – $249,999 | 10,388 | 35,978 | 3.5 |
$250,000 – $374,999 | 8,978 | 30,345 | 3.6 |
$375,000 – $499,999 | 6,048 | 18,226 | 4 |
$500,000 – $624,999 | 3,021 | 7,703 | 4.7 |
$625,000 – $749,999 | 1,891 | 4,669 | 4.9 |
$750,000 – $874,999 | 1,111 | 2,435 | 5.5 |
$875,000 – $999,999 | 759 | 1,599 | 5.7 |
$1M – $1.99M | 1,465 | 2,357 | 7.5 |
$2M and up | 563 | 369 | 18.8 |
This data shows that lower-priced homes are generally seeing lower months of inventory (indicating more competition), while higher-priced homes offer more options for buyers. This is a typical trend in most real estate markets.
Pennsylvania Housing Market Forecast 2024-2025
According to Zillow, the average Pennsylvania home value sits at $269,276, showing a 3.7% increase over the last year. Homes are currently spending around 11 days on the market before going pending – a pretty fast turnover!
This indicates a generally active market, but the picture varies significantly depending on the region. While this paints a generally positive picture at the state level, the local Pennsylvania housing markets tell a more nuanced story.
Pennsylvania Housing Market Forecast: A Regional Breakdown
Pennsylvania Housing Market Outlook
Key Highlights
Average Home Value: $269,276 (3.7% annual increase)
Days on Market (Pending): ~11 days
Regions on the Rise
Region | Forecasted Growth (Sept 2025) |
---|---|
Pottsville | 4.4% |
Reading | 2.1% |
Allentown | 2% |
Regions Facing Challenges
Region | Forecasted Decline (Sept 2025) |
---|---|
DuBois | -5.2% |
Altoona | -4.8% |
Johnstown | -4.9% |
Overall Market Sentiment
Market Outlook: Variable regional performance; continued activity.
The Pennsylvania housing market isn't a monolith; it's made up of many distinct local markets, each with its own unique characteristics and forecast. We'll break down the projected changes for several key regions. The data below represents forecasts from October 2024, looking out through September 2025. Remember, these are projections and the actual market performance could vary.
Region | Starting Date | Oct 2024 Change (%) | Dec 2024 Change (%) | Sept 2025 Change (%) |
---|---|---|---|---|
Philadelphia, PA | Sept 30, 2024 | 0.2 | 0 | 0.8 |
Pittsburgh, PA | Sept 30, 2024 | -0.2 | -0.9 | -1.5 |
Allentown, PA | Sept 30, 2024 | 0.3 | 0.3 | 2 |
Harrisburg, PA | Sept 30, 2024 | 0.2 | -0.1 | 0.7 |
Scranton, PA | Sept 30, 2024 | 0.1 | -0.1 | 1 |
Lancaster, PA | Sept 30, 2024 | 0.4 | 0.3 | 1.3 |
York, PA | Sept 30, 2024 | 0.2 | 0 | 0.8 |
Reading, PA | Sept 30, 2024 | 0.4 | 0.5 | 2.1 |
Erie, PA | Sept 30, 2024 | 0.1 | 0 | 1.1 |
East Stroudsburg, PA | Sept 30, 2024 | 0 | -0.2 | 3.2 |
State College, PA | Sept 30, 2024 | 0.3 | 0 | -1 |
Chambersburg, PA | Sept 30, 2024 | 0.2 | -0.1 | 0.1 |
Pottsville, PA | Sept 30, 2024 | 0.7 | 1.3 | 4.4 |
Lebanon, PA | Sept 30, 2024 | 0.1 | 0 | 0.8 |
Johnstown, PA | Sept 30, 2024 | 0.4 | -0.6 | -4.9 |
Altoona, PA | Sept 30, 2024 | -0.8 | -1.9 | -4.8 |
Williamsport, PA | Sept 30, 2024 | 0.2 | -0.1 | -0.9 |
Gettysburg, PA | Sept 30, 2024 | 0.2 | 0 | 0.2 |
Sunbury, PA | Sept 30, 2024 | 0.6 | -0.2 | -2.6 |
New Castle, PA | Sept 30, 2024 | -0.2 | -0.6 | -0.1 |
Meadville, PA | Sept 30, 2024 | 0 | -0.6 | -1.8 |
Indiana, PA | Sept 30, 2024 | -0.1 | -1 | -1.9 |
Bloomsburg, PA | Sept 30, 2024 | -0.3 | -0.9 | -3 |
DuBois, PA | Sept 30, 2024 | -0.4 | -1.7 | -5.2 |
Somerset, PA | Sept 30, 2024 | -0.1 | -0.3 | 0 |
Sayre, PA | Sept 30, 2024 | 0.1 | -0.1 | -0.2 |
Oil City, PA | Sept 30, 2024 | 0 | -0.2 | 0.8 |
Lewistown, PA | Sept 30, 2024 | 0.7 | 0.8 | 2.4 |
Huntingdon, PA | Sept 30, 2024 | 0.3 | -0.1 | -0.5 |
Lewisburg, PA | Sept 30, 2024 | 0.3 | -0.1 | -0.5 |
Bradford, PA | Sept 30, 2024 | -0.1 | -1.4 | -3.6 |
Selinsgrove, PA | Sept 30, 2024 | 0.3 | -0.8 | -3.3 |
Warren, PA | Sept 30, 2024 | -0.2 | -0.5 | 0.9 |
Lock Haven, PA | Sept 30, 2024 | 0 | -0.4 | -1.7 |
As you can see, the forecast is far from uniform across the state. Some areas, like Pottsville and Reading, are projected to see significant price increases. Conversely, places like Johnstown, Altoona, and DuBois are predicted to experience considerable price declines. This highlights the importance of focusing on specific local markets, rather than just the overall state average.
Will Home Prices Drop in Pennsylvania? Will There Be a Crash?
The million-dollar question (literally!), isn't it? Predicting a market crash is tricky business. While some Pennsylvania regions are forecasting price drops, a statewide crash seems unlikely. The projected declines are more localized and often stem from specific economic factors impacting that particular region. Interest rates, inflation, and local economic conditions play major roles. For example, areas heavily reliant on specific industries might see a steeper decline if those industries suffer setbacks.
Pennsylvania Housing Market Forecast for 2026
Predicting the Pennsylvania housing market beyond September 2025 requires more speculation, as long-term forecasts have higher margins of error. However, based on the current trends and projected trajectory, a gradual adjustment is more likely than a dramatic shift. Areas currently showing strong growth might see a moderation in their pace, while areas facing declines could see stabilization or even a slow recovery.
Much depends on broader economic factors like interest rates, inflation, and overall economic growth. We'll need to monitor those closely to refine our outlook for 2026 and beyond.
Remember that this is just a forecast. Things change rapidly in real estate. Stay informed, stay flexible, and consult with experienced professionals before making any major decisions.
Recommended Read:
- Philadelphia Housing Market Trends and Forecast for 2024
- Pittsburgh Housing Market Trends and Forecast 2024-2025
- Harrisburg Housing Market Forecast 2024: Will it Crash?
- Housing Market Predictions: Rate Cuts to Fuel Significant Price Increases
- Housing Market Predictions for Next Year: Prices to Rise by 4.4%
- Housing Market Predictions for the Next 4 Years: 2024 to 2028
- Housing Market Predictions for Q4 2024: Insights and Trends
- Housing Market Predictions Post 2024 US Elections