Pennsylvania Is More Affordable for Middle-Class Homebuyers

The typical household needs to earn nearly six figures to buy a median-priced U.S. home, but Pennsylvania requires the seventh lowest income nationwide to purchase a home in the state, according to an analysis by Realtor.com.

In February, the typical household nationwide would have needed to earn an annual income of $99,000 to buy a median-priced home of $415,500. The required income in many states was even higher, with potential homebuyers in 23 states needing incomes over $100,000 to avoid paying more than 30% of their gross income on housing.

Pennsylvania Home Sales Surge in March

Sales in the Keystone State rose 23.6% from the prior month, bucking a national trend.

Even though the spring homebuying season got off to a slow start across much of the U.S., one of the most populous states saw increased activity.

Home sales in Pennsylvania jumped 23.6% from February to March, according to a report released Friday by the Pennsylvania Association of Realtors (PAR). On a year-over-year basis, sales were down 10.5%, but the 8,790 transactions that closed last month were a positive sign for real estate professionals in the Keystone State.

“We typically see an increase in activity in the spring season and this year we’re off to a strong start,” PAR President Preston Moore said in a statement. “This spring represents a window of opportunity for buyers and sellers who want to enter the market.”

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New-Home Sales Climb as Builder Incentives Pay Off

Sales of newly built single-family homes jumped nearly 9% in March, reaching their highest level since last fall, the Commerce Department reported Tuesday. With limited inventory options in the resale market, more buyers are eyeing new construction.

Home builders are showing more willingness to offer incentives, such as price reductions, credits for closing costs, and mortgage rate buy-downs, which are helping buyers with affordability. Also, new-home prices are coming closer in line with the resale market. The median sales price of a new home was $430,700 in March, compared to $393,500 for existing-home sales. About 22% of builders say they cut prices in April, with an average reduction of 6%, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

Home Sales Tumble Nationally, But There’s Hope for a Turnaround

Consumer sentiment for home buying and selling is growing despite recent headwinds.

The spring housing market is off to a sluggish start, with home sales falling nationally in March. Economists say a resurgence in mortgage rates and inflation could be softening sales at the start of what is traditionally real estate’s busiest season. Despite the headwinds, sellers continue to see home prices grow, buyers’ appetite for housing remains high and bidding wars are still occurring. On top of that, a growing job market may offer some rosier prospects for more sales.

Existing-home sales dropped 4.3% nationally in March compared to the previous month and are nearly 4% lower than a year ago, the National Association of REALTORS® reported Thursday. While more listings came on the market last month, the increased competition among sellers didn’t appear to hurt home prices. The median existing-home sales price increased 4.8%, reaching $393,500—the highest price ever recorded for March, NAR reports.

There Are a Record-High 550 ‘Million-Dollar’ Cities in the US

The U.S. has a record-high 550 “million-dollar” cities — cities where the typical home is worth $1 million or more — new Zillow data shows. That is 59 more million-dollar cities than a year ago, reversing losses from when home values were wobbling this time last year.

Affordability is still a big challenge for buyers, but that hasn’t stopped home values from climbing. The housing market is tight with few homes available, and competition is still high for attractive homes. That competitive pressure is pushing home values higher across the U.S.

The good news for buyers in the market this home shopping season is that new listings are on the rise as the effects of “rate lock” are weakening. If mortgage rates drop later this year, as many expect, that may mean a second wave of buyer demand that drives prices higher.