The Pennsylvania housing market is one of the hottest in the U.S. right now. Low interest rates, tight supply, and a huge shift in buyer demand have home buyers, real estate agents, and investors turning their sights to the Keystone State.
We're taking a closer look at what’s happening in Pennsylvania, as well as how you can capitalize on these unique opportunities.
House Prices Are Soaring
Since the pandemic began, Pennsylvania median house prices have risen steadily. On average, the state has experienced a 16% increase in home value. The typical house is now worth approximately $234,684.
The Philadelphia metropolitan area has reported particularly strong growth, with the median home price jumping almost 12% to $329,900. The city's best-performing region is West Philadelphia, where prices have grown by a staggering 22%.
Counties such as Delaware, Montgomery, Kent, and New Castle are all recording their highest property prices in a decade, averaging from $293,000 to $386,000. Other areas with the fastest-growing sales prices in Pennsylvania include Chester, Pottsville, Brookhaven, New Holland, and North Wales.
Despite significant growth, the state's real estate market still comes in 20% cheaper than the U.S. average. It’s easy to see why the state has become a popular choice for homebuyers and investors looking for a bargain.
If you're looking to stay on top of Pennsylvania’s real estate growth, PropStream's heat map and estimated value features help you easily identify up-and-coming regions. You can then use the draw feature to zero in on properties, run comparables, and perform searches with over 120 filters to find your next off-market investment or listing.
Some Areas Remain More Affordable
Some areas of Pennsylvania are not experiencing the same high growth as their neighboring regions. These are an even more affordable option for those wanting to get their foot in the door of this hot market.
The median sale price in Pittsburgh, for example, was $216,500. Property prices in Philadelphia’s Center City and University City have also lagged behind the rest of the region. They’re experiencing growth of less than 5%, despite being at the bustling heart of this popular city.
This decline in growth signifies a decline in demand driven by the pandemic. As more people made the switch to working from home, some no longer saw the need to confine themselves to city living. The good news is that this trend isn’t predicted to last. Data suggests a return to city living is already underway. If you're looking to capitalize on the minimal rise in property prices in these areas, you should move quickly!
Supply Isn’t Meeting Demand
There’s also great news for investors or homeowners looking to sell in Pennsylvania. Along with the high growth in sales prices, the state is also experiencing low inventory and low interest rates for buyers. This combination is resulting in a seller's market.
Demand within the state is high. Across the eight most popular counties of Philadelphia, the average property stayed on the market only 34 days — a 41% decrease from last year.
This high demand combined with extremely low inventory has resulted in one of the most competitive markets the state has ever seen. In Philadelphia, Camden, and Wilmington, the active listings were down 46% in February of this year compared to 12 months prior. Meanwhile, in Montgomery County, real estate agents are seeing the lowest number of property listings in up to 15 years.
Foreclosures Have Risen Since the Pandemic
It's also a distressed seller's market. In 2021, Pennsylvania was among the states with the biggest increases in foreclosure starts. This information is helpful for real estate agents, as it can provide them with a leg up on their competition.
PropStream provides financial and situational information for off-market and distressed properties. You can use it to discover homes in pre-foreclosure due to divorce filings, tax liens, or bankruptcy. With a variety of filters, it's easy to tailor your search to find properties in pre-foreclosure for a wide variety of reasons. You can also use the built-in Skip Tracing feature to find homeowner phone numbers and emails for quick and easy contact.
The Future of the Pennsylvania Real Estate Market
Experts predict Pennsylvania’s current low interest rates, tight supply, and high buyer demand will keep the market hot into the foreseeable future. Demand isn’t set to decline any time soon, so house prices will likely continue to rise. If you’re looking to capitalize on Pennsylvania's current real estate market, now is the time. Ensure you're on top of the trends and equipped with the right tools to help you get ahead.