While nearly three quarters of Americans feel that home prices are too high, only 64 percent of Pennsylvania residents feel the same.
According to a recent survey from ValuedInsured, more than half, 52 percent, of Pennsylvania residents surveyed feel that prices in their community are unsustainable and that homes are overvalued. This is 5 percent lower than the national average.
More than half of homeowners in Pennsylvania believe that those who purchase in their current neighborhood could be overpaying, which is 4 percent lower than the national average. More than two-thirds of potential homebuyers are concerned buying today could mean buying high. Yet, 65 percent of consumers in Pennsylvania think their local housing market is cooling, compared to the national average of 75 percent.
“In August 2017, ValueInsured was among the first to report Americans’ concerns about overheated housing and a possible correction,” said Joe Melendez, CEO and founder of ValueInsured. “Buyers have switched from hoop jumpers to bargain-hunter mode. Expect the market to stall in the near term.”
Yet, 66 percent of homeowners in the commonwealth think their home will be worth more by the end of next year, compared to 34 percent who think their homes will be worth less. And most Pennsylvania residents feel that rising mortgage rates will help the housing industry, as it will shrink demand and home prices will drop.
“Gentrification and expanding to suburbia from city center has kept home prices in check in Pennsylvania, more stable versus ‘hot’ markets like Seattle, which have been irrational. I will also give credit to Pennsylvania homebuyers, who have shown remarkable discipline, resisting the herd mentality we have seen in other more overvalued housing markets. Locals here express more housing optimism, possibly because they have experienced less volatility,” said Melendez.
Not surprisingly based on the results of this survey, Pennsylvanians have a higher optimism about the housing industry in the state. Eighty-four percent of non-owners in Pennsylvania said they would purchase a home soon if they could afford it, 12 percent higher than the national average.
For 2019, “consumers are broadcasting a cautious tone and are willing to wait out the market uncertainty. We could see longer days on market for listed homes, and decelerated price growth,” said Melendez.