Pennsylvania’s real estate market demonstrates steady growth, with rising home values and increasing inventory. Here’s a comprehensive overview:
🏠 Statewide Market Overview
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Median Sale Price: In April 2025, the median home sale price in Pennsylvania was $306,100, marking a 7.4% increase compared to the previous year.
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Average Home Value: The average home value stands at $279,451, reflecting a 3.4% year-over-year growth.
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Inventory Levels: There were 38,372 homes for sale in April 2025, up 5.5% from the previous year.
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Median Days on Market: Homes are spending an average of 30 days on the market, consistent with the previous year.
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Sale-to-List Price Ratio: The median sale-to-list price ratio is 0.993, indicating that homes are selling close to their listing prices.
🌆 Regional Highlights
Philadelphia
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Market Competitiveness: Philadelphia ranks among the nation’s hottest real estate markets, driven by affordability and a robust job market.
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Inventory Constraints: Despite a 5.5% increase in inventory over the past year, the available housing stock remains significantly lower than pre-pandemic levels.
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Micro-Housing Trend: Approximately 6.5% of apartments under construction are classified as micro-units, reflecting a growing trend towards tiny homes in the city.
Pittsburgh
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Rental Market Surge: Since 2019, Pittsburgh has experienced a nearly 48% increase in median rent, the highest surge among major U.S. cities.
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Supply Constraints: Limited new construction, with only 1,738 new multi-unit permits in 2024, has contributed to rising rents due to constrained supply.
Other Notable Markets
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Fastest Growing Sales Prices:
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York: +27.6%
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Norristown: +18.8%
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Reading: +18.4%
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Harrisburg: +17.7%
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Scranton: +17.6%
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Drexel Hill: +16.7%
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Bethlehem: +14.9%
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Wilkes-Barre: +14.8%
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Lancaster: +12.2%
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Pottstown: +12.2%
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🔮 Market Outlook
Pennsylvania’s housing market is expected to maintain its steady growth trajectory through the remainder of 2025. The combination of rising home values and increasing inventory suggests continued competition among buyers, particularly in urban centers like Philadelphia and Pittsburgh. However, the market remains relatively affordable compared to national averages, making it attractive for both first-time homebuyers and investors.