State housing market continues upward trend

Pennsylvania saw double digits increases in closed sales in the second quarter over the first quarter of 2013, according to a Pennsylvania Association of Realtors® market analysis report. The statistics are based on MLS data reported to PAR.

Continuing the positive trend, closed sales were up 12 percent statewide in the second quarter compared to the first quarter of 2013. Pending sales were up 16 percent in the Commonwealth and inventory levels shrank 6 percent in the second quarter. Both closed sales and pending sales are up more than 11 percent over the second quarter of last year as well.

Medium home prices saw a small increase, rising 3 percent to $183,000 in the second quarter while days on mark dropped nearly 14 percent to 87 days.

“We’re continuing to see positive trends throughout most of the state,” said PAR President Bette McTamney. “It’s encouraging to see sales up, prices rising slightly and the days on market shrinking. While we’ve seen mortgage rates increase slightly, they are still very affordable.”

Rising interest rates and home prices have attributed to the housing affordability index dropping 7 percent over last year at this time. The current affordability index is 172. An index of 120 means the median household income is 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.