Central Pennsylvania Housing Market Remains Strong
Average home-sale prices in South Central Pennsylvania continued to improve in the first quarter of 2007, rising to the highest first quarter level in recent years.
According to Central Penn Multi-List, Inc., the average price of homes rose up to $177,208, compared to the average cost of $173,953 in the first quarter of 2006.
Average first quarter prices have grown 31 percent since 2002.
“The South Central Pennsylvania residential environment truly is the definition of a healthy housing market,” says Jerrod Paterson, President of the Greater Harrisburg Association of Realtors.
Despite some of the troubles encountered of late by Pennsylvania mortgage brokers and lenders, “The fact that home-sale prices continue to rise steadily reinforces the overall strength of our market,” he said.
Powered by low Pennsylvania mortgage rates, the number of housing sales in the first quarter was 2,281, nearly equal to the 2,300 units sold in the first quarter of 2006.
The number of units sold in the past quarter actually surpassed the first quarter of 2005, which saw 2,090 sold. The number of units sold ensured that 2007 boasted the second best Q1 sales in the last six years - a far cry from the mortgage woes being experienced elsewhere in the U.S.
The number of active listings in the area rose slightly to 2,899, compared to 2,793 active listings at the end of the fourth quarter of 2006. Listings averaged 63 days on market. In the first quarters of 2005 and 2006, times averaged 58 and 54 days, respectively.
“Overall, housing units are selling and average listing times continue to float around 60 days,” Paterson said. “Those statistics coupled with the increase in the average sale price solidify the fact that our housing market is still very strong.”
Across the nation, home sales continued to rise in February. According to statistics compiled by the National Association of Realtors, existing-home sales in February increased 3.9 percent from January.
While February 2007 total sales were still slightly lower than February 2006, the increase in February 2007 was the largest increase in nearly three years. Low mortgage loan costs continued to play a large role.
“While the national housing market is showing signs of a rebound after months of declining sales, the Central Pennsylvania housing market continues to build on the strength solidified over the last six years,” says Robert D. Fox of RE/MAX Premier Properties in Hershey.
“The strong market is just one more reason why it’s a great time to buy a home.”