Pennsylvania Realtors® Anticipate Increased Homebuying Interest as Mortgage Rates Shift

The median home sales price rose 6.4% in August compared to the same time last year, according to a report prepared for the Pennsylvania Association of Realtors®. In August, the median home sales price was $319,250, up from $300,000 in August 2024. The median price remained about the same compared to the previous month last year.

I believe we’re all optimistic that the recent announcement that the Federal Reserve has cut rates will help with a decline in mortgage rates.

When the Federal Reserve adjusts interest rates, it can directly influence mortgage costs. Even small shifts can affect a buyer’s monthly payment, making affordability a key factor in today’s housing decisions.

Home listing levels continue to climb, hitting 41,497 last month, up nearly 7% year-over-year. Inventory levels were down by about 2% from July to August this year. Sales in the previous 12 months have increased more than 5% in price ranges over $250,000 to $2 million and over. Sales have fallen more than 5% on listings priced under $249,999.

Our report shows that there are 4.27 months of inventory on the market, moving closer to a balanced market of six months. The greatest inventory shortage remains in the $125,000 to $374,999 range, which has less than four months of inventory.

Home sales were consistent year-over-year at 11,470 in August.

With both prices and inventory holding steady, Pennsylvania’s housing market is showing a welcome sense of stability for buyers and sellers alike. When prices and inventory remain stable, it gives buyers and sellers the confidence to make their next move.

A trusted Realtor® and lender can help navigate the shifts, ensuring clients make confident decisions about their homebuying process.