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2022: What to Expect in the Pennsylvania Real Estate Market
December 13, 2021

2022: What to Expect in the Pennsylvania Real Estate Market

by The CE Shop Team

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. 

Zillow's Home Data Pennsylvania
Source: Zillow

2021-2022 Pennsylvania Real Estate Market Data

Zillow Home Value Index

$245,153

Home Value Change YoY

+15.9%

One Year Home Values Forecast

+12.8%

Rent Price Change YoY

+19.1%

The Percentage of Homes With Negative Equity

2.3%

Mortgage Delinquency Rate

1.0%

Available Housing Inventory

19,970

Buyer’s or Seller’s Market

Seller’s

Market Insights for Pennsylvania

Pennsylvania's Housing Market 2022

In October 2021, the Bureau of Labor Statistics reported that Pennsylvania’s unemployment rate was 6.0%, which is down from May’s high of 7.0%. This steady drop in unemployment is another good indicator of economic healing. 

As unemployment rates continue to drop, Pennsylvanians and out-of-staters alike have found plenty to love in the Keystone State, as evidenced in part by 2021’s rural real estate boom. Thanks to the change in lifestyle many homeowners experienced during COVID-19, countless folks are still yearning for more space through affordable housing outside of the city. Who can blame them? 

Pennsylvania’s natural beauty is vast, and for those searching for greener pastures and fresh air, the countryside is ideal. And that’s not all Pennsylvanians have to boast about. Here’s how Pennsylvania ranks in comparison to the rest of the nation:

  • First in craft beer production
  • Third in pharmaceutical export
  • Tenth in best states to live

Residents are drawn here because of the boundless outdoor space, affordable housing, close communities, and steady work available. Pennsylvania’s manufacturing output has steadily increased since 2010. Even with turbulence during the pandemic, it remained steady in 2020. The Keystone State’s top industries have shifted since its peak during the mining boom, and the majority of the state’s civilians are employed in healthcare, manufacturing, or retail-related industries. All of these verticals provide steady employment, which acts as the backbone of the state’s economy. 

Overall, we predict that Pennsylvania homes will stay in high demand in the year ahead, especially given the low inventory, so 2022 is poised to be a hot seller’s market from the get-go. Real estate agents throughout the state should be prepared for another busy year, even if the market begins to cool and return to regular seasonal trends.. If you’d like to help clients navigate this hectic market, there has never been a better time to serve your state!

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