State real estate market continues positive momentum

The Commonwealth’s real estate market continues bouncing back, according to a recent Pennsylvania Association of Realtors® (PAR) market analysis report. Closed sales were up 15 percent and new listings rose 12 percent in the third quarter of 2013 over the same quarter a year ago. The statistics are based on MLS data reported to PAR.

Median sale prices were up slightly with a 3 percent rise to $185,000 in the third quarter this year compared to the third quarter in 2012. Days on market continued to drop, down 14 percent to 80 days in the third quarter, compared to Q3 2012.

“While all real estate is local and each market has its own characteristics, most Realtors® throughout Pennsylvania are seeing increased business,” said PAR President Bette McTamney. “Many of us are seeing multiple offers on homes that are priced right and in good condition. Our statewide market research shows that 93 percent of original list price was received in the third quarter compared to 91 percent in the third quarter of 2012. Some local areas are seeing as high as 96 percent.”

The affordability index has fallen nearly 10 percent compared to the third quarter last year. “Mortgage rates are still very attractive but they have been rising slightly and we’re seeing home prices trending upward as well,” McTamney said. “The affordability index in the third quarter is at 165.” 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.