Pennsylvania Homebuyers Face Limited Options
Homebuyers in Pennsylvania are currently facing a challenging market, with 60% fewer houses to choose from compared to six years ago. This has led to a 20% decrease in home sales volume compared to October 2022. Despite this, there is no shortage of interested buyers, and several factors are contributing to the current situation.
Factors Impacting Pennsylvania’s Housing Market
Al Perry, president of the Pennsylvania Association of Realtors, explained that the reduced number of homes on the market and slower deal flow do not mean there aren’t interested home buyers. He stated, “We’re operating at about half that listing inventory now that we had just back then 2017.”
There are several factors contributing to the current housing market situation in Pennsylvania, including inventory, prices, and interest rates. Additionally, there has been a lack of new homes being built, while millennials, one of the largest generations, have reached their peak home buying years.
Interest Rates Offer Some Relief
While the overall housing market may be challenging, Perry has observed some relief in interest rates. He mentioned that lenders are offering rates under 7% for those with premium credit, and rates in the mid-sixes, depending on the down payment. This provides some relief for potential buyers in the current market.
It is important to note that while the Federal Reserve sets the underlying rate, known as the Federal Funds Rate, it is up to mortgage lenders to decide how much to charge customers. The median sale price for a home in Pennsylvania last month was $217,537, up from $214,000 in October 2022. The average 30-year fixed mortgage interest rate was 7.63% in late October, compared to 6.92% last year.
What This Means for Homebuyers
For homebuyers in Pennsylvania, the current market conditions mean they must be prepared to act quickly and potentially face increased competition for available properties. With fewer homes on the market and higher prices, buyers may need to adjust their expectations and be more flexible in their search criteria.
However, the relief in interest rates can provide some financial assistance for those looking to purchase a home in the current market. By staying informed and working with a knowledgeable real estate professional, buyers can navigate the challenges of the Pennsylvania housing market and find their perfect home. If you’re searching for a home in Pennsylvania, consider reaching out to Jessica Fulk Real Estate for expert guidance and support.
Orginal article: Link To Article – provided by Kansas City Realtors