As we venture into 2024, Pennsylvania emerges as a formidable player in the United States real estate arena, boasting four of its markets among the top 100 nationwide. This remarkable recognition comes from the latest report by Realtor.com, which released its eagerly anticipated 2024 Top Housing Markets forecast on Monday. The report meticulously evaluates and ranks the U.S. housing markets that are most “primed and ready for growth,” spotlighting areas expected to experience the most significant increases in both home sales and listing prices over the coming year.
A Closer Look at Pennsylvania’s Leading Real Estate Market
Diving into the specifics of the real estate sector, the Scranton-Wilkes-Barre market has impressively secured the 13th spot on the list. This area will likely see a 5.5 percent year-over-year increase in existing real estate home sale counts, along with a significant 16.2 percent surge over the 2017-2019 average. Moreover, experts project the median sale price for existing homes in the real estate market to rise by 6.3 percent year-over-year, resulting in a combined growth in real estate home sales and prices of 11.8 percent for 2024.
Allentown-Bethlehem-Easton: A Mixed Bag of Results
Positioned at 23rd, the Allentown-Bethlehem-Easton, PA-NJ market presents a blend of outcomes. While there’s a modest 2.2 percent year-over-year increase in existing home sale counts, the comparison with the 2017-2019 average reveals a 13.2 percent decline. Nevertheless, experts anticipate the median sale price of existing homes will grow by 5 percent year-over-year, resulting in an overall combined growth of 7.3 percent in sales and prices.
Challenges in the New York-Newark-Jersey City and Philadelphia Markets
The New York-Newark-Jersey City, NY-NJ-PA market, ranking 75th, and the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD market, at 80th, depict challenging scenarios. Both markets are expected to see declines in existing home sale counts year-over-year and compared to the 2017-2019 averages, with modest increases in median sale prices. These conditions point towards a contraction rather than growth, with combined sales and price growth rates in the negative territory.
The National Perspective: A Glance at the Top Performers
Nationally, the top real estate markets are predominantly located in Southern California, the Northeast, and the Midwest, reflecting a diverse geographic spread. Notably, California holds five of the top ten positions, underscoring its enduring appeal, while Massachusetts secures two spots, indicating robust market conditions in these states.
The Future of Real Estate: Affordability and Opportunity
Looking ahead, Realtor.com forecasts a silver lining of affordability relief for prospective home buyers in 2024. Declining sales prices and mortgage rates are expected to breathe new life into the market, fostering opportunities even within more expensive regions. This optimistic outlook gains further support from Realtor’s researchers, who reveal a resilient belief in the attainability of homeownership amidst inflationary pressures and economic uncertainties. Nearly half of first-time buyers now view purchasing a home as a more advantageous option than renting, with a significant portion optimistic about affording a home shortly.
This comprehensive analysis underscores the dynamic nature of the real estate market, highlighting Pennsylvania’s significant role and the broader national trends shaping the landscape as we move into 2024.
