What Are the Best Housing Markets in Pennsylvania?
The Wall Street Journal and Realtor.com recently ranked the best markets.
|
The housing market has been on fire for months all across the country, including right here in Pennsylvania.
It’s a long way from last year’s COVID-19 red phase, when PA real estate agents couldn’t even sell houses. So when it comes to PA markets, where do they rank when it comes to real estate sales?
The Wall Street Journal and Realtor.com recently ranked which housing markets are expected to provide both a strong return on investment and are a nice place to live. Read more from Penn Live.
|
More Buyers Expect the House Hunt to Get Easier; Majority Still Wary |
Homebuyers are up against limited inventories of homes for sale and struggling to triumph in a competitive market. But they’re hopeful for a turnaround over the next few months.
Thirty-three percent of prospective buyers recently surveyed are hopeful that it will be easier to find a home over the coming months—an improvement from 25% who said so a year ago, according to the latest Housing Trends Report, produced by the National Association of Home Builders. Still, the majority--61%—of buyers expect home searches to become more difficult or stay the same in the future.
|
Millennials Driving Home Prices; Entry Level Homes See Greatest Gains |
Another home price index shows double digit annual price increases, this time for March, and the CoreLogic HPI also has the highest month-over-month gain we have seen in the present environment. The company says there was an 11.3 percent national rate of appreciation during the month while prices were up 2.0 percent from February. There were no states in which prices declined year-over-year, and those with the highest rates included Idaho (25 percent), Montana (18.8 percent), and Arizona (18 percent).
The company says the 2021 spring homebuying season is on track to outpace trends seen in 2019 and 2018. Millennials are driving the demand, accounting for 54 percent of home purchase applications over the last year. "Older millennials are seeking move-up purchases and younger millennials are entering peak homebuying years. As we look towards the second half of the year, further erosion of affordability may dampen purchase demand as prospective buyers continue to compete for the severely limited supply of for-sale homes. A pick-up in construction and an increase in for-sale listings as more people get vaccinated may help moderate surging home price growth." Read more from Mortgage News Daily.
|
Are Existing Homes Really More Pricey Than New? |
The median existing-home price for a single-family home in March jumped to a record high of $334,500, according to data from the National Association of REALTORS®.
Meanwhile, the median sales price of a newly built home was $330,800, according to U.S. Census Bureau data.
New homes are traditionally more expensive than used homes. The scenario in which existing homes sell for more than a new home hasn’t occurred in more than 15 years, CNBC reports.
|
Don't Play, Parents: Homes With Kid-Friendly Features go Fast |
- Listing keywords indicating nearby parks, bonus space, and pools are some of the hottest for attracting home shopping families.
- Families should expect to pay more for kid-friendly features, with listings that mention “treehouse” or “garage” associated with a 2.2% sale premium.
- Kid-friendly homes are also selling quicker than expected. Homes with a backyard mentioned in the listing description are selling more than five days faster.
Buyers looking to snag a child-friendly home near a park or with a treehouse better be prepared to act fast.
Highlighting outdoor, family-friendly features in online listing descriptions helps homes sell more quickly than when indoor amenities are highlighted, a clear signal of the high demand families place on outdoor space. Listings mentioning a backyard sold 5.2 days faster than expected, and homes featuring a sandbox (4.5 days quicker) and playground (2.5 days) also sold more quickly. Read more from Zillow.
|
These Home Renovations Will Give You the Greatest Returns |
- The majority of projects offering the greatest returns in resale value were related to curb appeal, according to the 2021 Cost vs. Value report from Zonda Media, a housing market research and analytics firm.
- Garage door replacement showed a 94% return on investment.
- Decks were popular but didn’t show the highest return on investment.
It should come as no surprise that outdoor spaces are more valued than ever. The coronavirus pandemic sent us all home for a year, and being cooped up inside made us long for upgraded outdoor spaces. Read more from CNBC.
|
Consumer income and spending are picking up, which is leading to an acceleration in economic growth. The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It's also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow. |
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us. |
phone: 610.834.8700
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
|
|
Follow us on social media! |
Weekly Housing Market Monitor
Get the latest national housing market data in the Weekly Housing Monitor from the National Association of Realtors.
|
Recent Economic Data
(click to enlarge)
|
PMA & PHFA/NJHMFA can make it easier for first-time buyers to purchase a home!
|
are Easier with PMA's
In-House Approvals!
|
|
