While the housing market is experiencing some slowdown, home prices continue to reach record highs and inventory is not lasting long on the market.
Last month, the percentage of active listings rose 18.7% year over year, representing 98,000 more homes on the market, according to Realtor.com®. However, inventory is still below June 2022 levels by 34.1% and down 53.2% compared to June 2019. Newly listed homes increased 4.5% year over year. Home prices are still increasing; the median national home price for active listings hit $450,000 in June, a 16.9% increase year over year. However, there has been a decrease in smaller (1,750 square feet or less) homes listed, suggesting that the increase in price could be attributed to larger, pricier homes leading the rise in cost.
Homes are still moving quickly off of the market. The average home was on the market for 32 days in June, compared to 36 days a year prior. Pre-pandemic, homes were spending about 59 days on the market. Despite most homes spending so little time on the market, there has been an increase in homes reducing their listing price. About 15% of homes dropped their price, an increase of 7.3% year over year.
However, the two biggest cities in Pennsylvania are offering affordable alternatives. In the Philadelphia area, the median listing price is $349,000, representing a 4.2% year over year increase, according to Realtor.com®. Yet, both active and new listings are down in the market, but homes are spending 37 days on average on the market, remaining unchanged from a year prior. In Pittsburgh, the median home price is just $240,000, a decrease of 8.6% year over year. Homes are lasting around 37 days on the market as well, down four days year over year. Active listings are up 4.2%, while new listings are down 6.9%.