Median Home Sales Prices Fall in December

The Pennsylvania housing market saw a shift in activity in December, according to a report prepared for the Pennsylvania Association of Realtors®. Many markets across the country have seen home prices decreasing, while experiencing low inventory and higher mortgage rates.

In Pennsylvania, the median existing home sales price of homes sold dropped 11% from the previous month to $193,792 in December, which is nearly the same as it was a year ago.

Looking at our year-end totals, the median sales price overall for 2022 was $208,185. That’s about 8% higher than the 2021 median price of $192,040 and 21% higher than the 2020 median price of $168,152.

Like most of the country, I think Pennsylvania is starting to see prices leveling off. Most experts have been predicting a more modest 2% to 3% increase in prices overall this year, which is a shift from the more aggressive price increases that we’ve been experiencing the past few years.

Home sales fell slightly to 9,176 in December, down from 9,663 in November. As a result of the low inventory, sales were down 33% compared to the same time the previous year. Total sales in 2022 were 136,531, compared to 164,671 in 2021 and 151,363 in 2020.

The number of listings dropped to the lowest number all year in December to 28,801.

Listings are down 20% from the same time last year. Overall, we’ve seen the average number of listings decline about 10,000 each year since 2020. The industry has underbuilt homes for more than a decade and as more millennials look to become homeowners, we’re seeing a lack of available homes that they can afford. That shortage of homes continues to keep prices up overall.

With interest rates between 6% and 7%, many buyers are more cautious about entering the market. You and I know that working with a Realtor® can help them navigate the market to determine how to best meet their housing needs. I’ve talked with so many of you who continue to help buyers navigate this market and help them find the home of their dreams – because that’s Who We R.

As we see the market starting to settle in this different climate, I have confidence in the resiliency of our members to rise to new challenges we’ll see in the industry.