Pennsylvania Housing Market Analysis - August 2024
The Pennsylvania housing market in August 2024 is showing us varying trends across key metrics. The Median Sales Price for homes in the state stands at $310,200, reflecting a modest year-over-year (YoY) increase of 1.0%. This indicates a slight appreciation in home values, suggesting a stable market environment.
Conversely, the Median List Price has experienced a slight decline, currently at $292,800, down by 0.6% YoY. This decrease in list prices may indicate a shift towards more competitive pricing strategies among sellers, potentially to attract buyers in a market where other indicators show some cooling.
One of the more notable trends is the increase in the median Price Per Square Foot, which has risen to $179, marking a significant 5.1% YoY increase. This suggests that while overall list prices have slightly decreased, the value attributed to each square foot of property has appreciated, reflecting a demand for quality and perhaps smaller, more efficient living spaces. The Median List Price per square foot has also seen a substantial rise of 8.0% YoY, aligning with this trend.
In terms of sales activity, the number of Homes Sold in August 2024 was 12,070, a slight decline of 1.5% YoY. Pending Sales have seen a more pronounced drop, down by 7.3% YoY to 12,282. This reduction in Pending Sales could be indicative of a slower market pace or buyer hesitation. New Listings have also decreased by 2.3% YoY, totaling 13,413, which may contribute to the overall market dynamics.
Inventory levels have increased by 6.7% YoY, reaching 26,078 homes. This rise in inventory, coupled with a 20.0% YoY increase in Months of Supply to 2.20 months, suggests that the market is becoming more balanced, moving away from the seller's market conditions that have prevailed in recent years. The Median Days on Market have increased by 3.0% YoY to 29 days, further indicating a slight cooling in market activity.
The average sale to list ratio has decreased slightly to 99.3%, down by 0.6% YoY, suggesting that homes are selling closer to their list prices but with less frequency of bidding wars. The percentage of Homes Sold above list price has dropped to 34.9%, a 5.7% YoY decrease, reinforcing the trend towards a more balanced market.
Price Drops have become more common, with 31.2% of listings experiencing a reduction, up by 3.3% YoY. This increase in Price Drops may be a response to the higher inventory levels and longer time on market. Additionally, the percentage of homes going Off Market Within Two Weeks has decreased by 3.6% YoY to 46.7%, indicating that homes are taking longer to sell.
Overall, the Pennsylvania housing market in August 2024 shows signs of stabilization with modest price increases in some areas and a cooling in sales activity. The increase in inventory and Months of Supply suggests a shift towards a more balanced market, providing opportunities for both buyers and sellers to navigate the real estate landscape with more equilibrium.
