Pa. Home Inventory Down 21% Year Over Year in October

The challenging housing inventory levels and consumer demand are contributing to Pennsylvania median home sale prices maintaining higher values. The Pennsylvania median home sales price was $217,537 in October, up slightly compared to September and up 1.5% year over year, according to a report prepared for the Pennsylvania Association of Realtors®.

Our reports show the median sales price has risen 34% over the past five years. We know that home values have really appreciated in the past several years and according to most reports, home prices aren’t expected to fall significantly with the tight inventory most markets are experiencing.

Last week while I attended the National Association of Realtors® NXT Conference, the message we continued to hear was the lack of available homes continues to be an issue nationwide. In Pennsylvania, inventory remained about the same in October compared to the previous month this year with 36,839 listings on the market. However, the number of listings has fallen more than 60% from just five years ago and they’re down more than 21% from 2022.

These record-high home prices and tight inventory, combined with 20-year-high mortgage rates, have especially affected first-time homebuyers. According to research by the National Association of Realtors®, first-time buyers made up 32% of all homebuyers last year, up from previous year’s historic low of 26%, but still below the average of 38% since 1981.

Pennsylvania home sales were down slightly at 9,975 in October from September but were down about 20% year over year.

NAR research shows that both buyers’ and sellers’ use of Realtors® has remained steady. We need to explain to homebuyers that they can rely on their Realtors® to help with the sales transactions. Realtors® have strong skills in negotiating, particularly for multiple bid situations. Realtors® are key to guiding their clients through the process, helping prioritize their needs, coordinating home inspections and appraisals and serving as their ally.