Pennsylvania Median Home Price Fell 3% in February

We saw more homes listed last month which is good news for homebuyers and Realtors®.

PAR’s monthly housing report showed more homes on the market in February compared to January, while sales fell slightly, according to a report prepared for the Pennsylvania Association of Realtors®.

Homes listed on the market were up 3.3% at 32,636 houses in February compared to 31,550 the month prior, however this remains significantly fewer homes listed than just two years ago.

The number of houses listed in February is nearly half compared to the high in 2020. In February 2020, we had 61,748 listings and the highest number of listings was in June 2020 with 66,629. As we all are experiencing, we simply don’t have enough inventory to meet demand even though most markets continue to see strong demand from potential homebuyers.

Unsold inventory remains at a little over a two-month supply, similar to market conditions across the country, with six months considered a balanced market. In my own local market, the inventory is considerably lower. This continues to be a hurdle for potential buyers throughout the state.

The low available inventory is being reflected in home sales. They fell again in February, down 13% from January. The commonwealth had 8,607 home sales in February, compared to 9,920 the month prior.

We also saw the median home price decline 3.2% to $184,200 in February, compared to $190,381 in January. This is still up 4.3% over the same time last year.

I’m optimistic that as the pandemic conditions continue to improve, we’ll see more consumers ready to list their homes. As you know, many have been cautious about having potential buyers tour their homes.

Mortgage rates have gone up slightly over the past year but as we all know, they’re still historically low. I was recently in a meeting where a fellow Realtor®, who has been in the market about 20 years longer than me, recalled interest rates at 18% at one point in his career. It’s become so important for all of us to explain the current market situation and set expectations for our clients.