Are You Ready for Pennsylvania’s 2022 Real Estate Market?
Pennsylvania’s real estate market was hot this year and shows no signs of slowing down, as home prices are forecasted to increase in 2022. With mortgage rates remaining low, remote work opportunities holding strong, and more affordable housing than its neighboring states, homebuyer demand will remain steady heading into the new year. So, are Pennsylvania’s real estate agents up for the challenge?
2022 Pennsylvania Real Estate Outlook: Hot
Pennsylvania’s home prices have increased by 15.9% year-over-year (YoY), with homes throughout the Keystone State seeing approximately $30,000 in increased value. Despite the rising home prices, Pennsylvania is still affordable, especially compared to neighboring states. The average home cost is $245,153, which is nearly $70,000 lower than the country’s average home price.
The affordability of Pennsylvania properties doesn’t mean that many are available, however. As of November 2021, there were only 19,970 available homes on the market. Buyers will continue to struggle with this low inventory as 2022 unfolds.
Prospective buyers aren’t the only ones struggling. The average rental price throughout Pennsylvania increased by 19.1%, landing at a mean of $1,913 per month. However, rental prices didn’t increase everywhere in the Keystone State. In large metro areas like Philadelphia and Pittsburgh, rental prices actually decreased. Pittsburgh’s average rent dipped by 2.7% while Philadelphia’s average rent dropped by a staggering 11.2%.
While renters and buyers lament, homeowners are sitting comfortably.
The number of Pennsylvania homes with negative equity was 2.3% as of March 2021, down from last year’s rate of 2.9%.
Delinquency rates across the state also remain low at 1.0% as Pennsylvania’s unemployment rate continues to improve. These declining figures are good indicators of our steady bounce back after another tumultuous year due to the ongoing pandemic. As opportunities return and the economy heals, we expect these data points to continue to decline in 2022.