Pennsylvania's housing market has shown "positive momentum" this spring, with a big jump in the number of homes for sale, the state's realtor group said.
The number of homes available for sale rose to 41,100 in the Keystone State in May, marking a 12% year-over-year increase, according to data from the Pennsylvania Association of Realtors. The median home sales price hit $305,000 in May, a roughly 6% increase from the same period last year, the group said.
“More listings mean more opportunities for buyers to find the right home,” Bill Lublin, association president, said in a statement. “And rising prices show that the market remains resilient, with buyers willing to invest in homeownership.”
The number of homes available for sale is important to track within a local housing market because, as economists have noted, having more supply typically helps temper prices. In Pennsylvania specifically, the state has spent years lagging in home construction, and those delays have led to a statewide housing shortage, according to a March study from the Pew Research Center. "Pennsylvania, in part because of restrictive zoning regulations, ranked 44th among the 50 states on the rate of housing built from 2017 to 2023."
"Pennsylvania’s experience mirrors what’s happening in other parts of the country," Pew researchers said. "Housing costs are rising where population growth is not met by additional housing supply."
Inventory is growing in Pennsylvania, in part, because homebuilders have been busy constructing developments in some of the state's smallest communities. For example, Pulte Homes has completed a condominium tower in Conshohocken and plans to offer sales there in the coming weeks.
Lennar began offering newly built single-family homes in Perkiomenville in April, and the company is officially opening townhouses in Downingtown this week. Meanwhile, Toll Brothers built 33 single-family homes in Spring City that opened last fall and is finishing a 55-home community in Collegeville that's slated to open this winter, the company said.
Listings increase 'is helping balance the market'
Pennsylvania has roughly 25,700 homes for sale — including townhouses, condos and co-ops — as of June 23, according to Homes.com data.
“The uptick in available homes is helping to balance the market," Lublin, a real estate agent with Century 21 in the Philadelphia area, said in the statement. "This environment benefits both buyers and sellers, creating more choices for buyers and maintaining strong home values for sellers.”
In Pennsylvania,10,635 homes sold last month, a 16% increase from April to May but a 3.8% drop compared to May 2024, the report indicated. The number of listings rose 12% between April and May, while sales prices grew 3% from month to month.
As of May, the state has enough inventory for four months of sales, the association said. A six-month supply is "considered a balanced market," the group said.