The housing market in Harrisburg, PA, in 2024 presents both opportunities and challenges, as it reflects broader economic trends and local supply and demand dynamics. Whether you are a potential buyer, seller, or investor, understanding the nuances of this market is crucial. Let's delve into the current trends, prices, supply-demand dynamics, and overall viability of Harrisburg's real estate sector.
How is the Harrisburg, PA Housing Market Doing in 2024?
Harrisburg Home Prices
What is the Average Home Price?
- The average home value in Harrisburg, PA, has risen to $246,391, reflecting a 6.4% increase from the previous year (source: Zillow). This upward trend indicates a healthy appreciation rate, benefiting homeowners and potential sellers.
Median Sales Price
| Metric | Value |
|---|---|
| Median Sales Price | $234,468 |
| Change from Last Year | +15.8% |
In June 2024, the median home sold price in Harrisburg was $234,468, marking a 15.8% increase from the previous year (source: RocketHomes). This substantial rise in median sales price underscores the strong demand for housing in the region.
Median List Price The median listing price for homes in Harrisburg is currently $264,900. The listing price gives a clear indicator of seller expectations and market trends. It’s significant to note that listing prices can sometimes be higher than selling prices, reflecting negotiation dynamics.
Are Home Prices Dropping? Contrary to potential fears of a housing market crash, home prices in Harrisburg are continuing their upward trajectory. The growth in home prices can be attributed to several factors, including economic stability, an influx of buyers, and limited housing inventory. This market resilience is encouraging for current homeowners and prospective sellers.
Harrisburg Home Sales
How did the housing market perform in the last month?
- The Harrisburg housing market has shown remarkable resilience. Over 681 active home listings and 52 new homes have been introduced to the market, indicating a robust and competitive environment (source: Movoto).
How Many Homes Were Sold?
- In June 2024, homes in Harrisburg sold at a median price of $234,468, representing a 15.8% increase from the previous year. This data highlights the strong performance of the market, with properties moving quickly and at higher prices.
Did Home Sales Drop or Rise Compared to the Same Month Last Year? Home prices increased by a staggering 46.4% compared to last year, suggesting a significant rise in the number of homes sold (source: Redfin). This trend reflects heightened buyer interest and sustained demand in the market.
Harrisburg Housing Supply and Demand
Is the Harrisburg Housing Market Cooling? Despite occasional fluctuations, there are no significant signs of the Harrisburg housing market cooling. Demand remains robust, evidenced by homes spending an average of just 10 days on the market. The swift turnaround times illustrate the competitive nature of Harrisburg's housing market, underscoring the need for buyers to act decisively.
Is Harrisburg a Seller's Real Estate Market?
Harrisburg, PA, is currently a seller's market. Here’s what that means and why it matters:
- Low Inventory: The number of homes for sale is considerably lower than the number of buyers. This scarcity has led to higher prices and quicker sales.
- High Demand: Buyer interest remains strong, often leading to competitive bidding and multiple offers on the same property.
- Fast Sales Times: Homes in Harrisburg are typically going to pending status in approximately 10 days, dramatically faster than in more balanced or buyer-friendly markets.
In a seller's market, homeowners have the upper hand, often receiving offers above asking price. This environment creates a favorable situation for those looking to sell quickly and for a premium.
For Investors: The market dynamics also create lucrative opportunities for real estate investors. Harrisburg’s rising home prices and strong rental demand present potential for significant returns on investment. The limited housing supply and growing population further enhance the attractiveness of investing in rental properties or flipping homes.
Is it Expensive to Live in Harrisburg?
Cost of Living:
- The cost of living in Harrisburg is relatively moderate. It is 3% higher than the state average and 1% lower than the national average.
- Average Rent: The average rent in Harrisburg is $1,119 per month (source: RentCafe). This rate is quite competitive compared to many urban areas, offering a decent cost-benefit ratio.
What is the Most Expensive Neighborhood in Harrisburg, PA?
- The Old Uptown Historic District holds the title for the most expensive neighborhood, with a median listing home price of $250,000 (source: Realtor.com). This area is known for its historic charm and desirable amenities, contributing to higher property values.
To sum up, the Harrisburg housing market in 2024 remains robust and competitive, offering a wealth of opportunities for sellers, buyers, and investors. The steady increase in home prices, coupled with strong demand and limited supply, makes Harrisburg an attractive option for real estate ventures. While living expenses are moderately high, the city’s thriving real estate market provides value and potential for growth.
Harrisburg Housing Market Predictions
The Harrisburg, PA Metropolitan Statistical Area (MSA) housing market has been garnering attention due to its distinct trends and potential future performance. Below is a data-driven forecast (Zillow) that provides key insights into the coming months and year:
| RegionName | RegionType | StateName | BaseDate | 30-06-2024 | 31-08-2024 | 31-05-2025 |
|---|---|---|---|---|---|---|
| Harrisburg, PA | MSA | PA | 31-05-2024 | 0.2% | -0.1% | -1.3% |
This table outlines the forecasted changes in home prices for the Harrisburg MSA up to May 2025. These percentages indicate expected shifts in market performance over a specific time frame.
30 June 2024
As of June 30, 2024, the Harrisburg MSA housing market is projected to experience a slight increase of 0.2%. This marginal growth suggests stability in the short term, driven by consistent demand and moderately balanced supply.
31 August 2024
Moving forward to the end of August 2024, a minor reduction of -0.1% is anticipated. This forecasted decline indicates a slight cooling in the market, potentially influenced by seasonal trends or slight adjustments in buyer demand.
31 May 2025
The most significant forecasted change occurs by May 31, 2025, with an expected decrease of -1.3%. This projection suggests a softening market, where home prices might begin to see more substantial corrections.
Will it Crash or Boom?
Analyzing the data reveals insights into whether the Harrisburg MSA housing market is headed toward a crash or a boom:
Factors to Consider
Economic Stability:
- Harrisburg's economy is diverse, with strong sectors in government, healthcare, and education. This economic diversity often provides a steady base for the housing market.
Housing Supply and Demand Dynamics:
- Limited inventory and consistently high demand have supported home prices thus far. Barring significant shifts in either, drastic market changes are less likely.
Interest Rates and Federal Policies:
- Interest rates and lending policies play pivotal roles. Should rates remain favorable, buyer interest will likely maintain market equilibrium, preventing a crash.
Conclusion
Based on the projections and current economic indicators, a full-scale crash in the Harrisburg MSA housing market appears unlikely. The softer decline anticipated in May 2025 (-1.3%) does suggest a market correction rather than a crash, reflecting realistic adjustments in an over-heated market. Potential buyers, sellers, and investors should remain informed but not alarmed.
The Harrisburg housing market is likely to stabilize, with modest fluctuations rather than dramatic booms or busts. For those involved in the market, strategic decisions and careful monitoring of ongoing trends will be essential.
Should You Invest in the Harrisburg Real Estate Market?
1. Population Growth and Trends
The population growth in Harrisburg is a key factor contributing to the attractiveness of its real estate market. As of recent data, the city has experienced a steady increase in population, signaling a growing demand for housing. This upward trend is often indicative of a thriving community and a favorable environment for real estate investment.
2. Economy and Jobs
The strong local economy and employment opportunities in Harrisburg further enhance its real estate investment appeal. With major employers such as Hersheypark, The Pennsylvania State University, and Harrisburg University of Science and Technology, the city provides a stable job market, attracting residents and potential tenants. A robust economy typically translates to increased housing demand, making it an advantageous location for real estate investors.
3. Livability and Other Factors
- Harrisburg offers a four-season climate, making it appealing to a diverse range of residents.
- The city is located in a beautiful area with easy access to the mountains and the Susquehanna River.
- Harrisburg is home to parks, trails, and rivers, providing recreational opportunities for residents.
- Historical attractions such as the Pennsylvania State Capitol and the National Civil War Museum add to the city's cultural appeal.
These factors collectively contribute to the overall livability of Harrisburg, making it an enticing location for real estate investment.
4. Rental Property Market Size and Growth
The rental property market in Harrisburg is significant, and its growth potential adds to the investment allure. With 47.5% of sales over list price and 32.1% of sales under list price as of October 31, 2023, the market dynamics indicate opportunities for investors. The median sale to list ratio of 1.000 emphasizes the competitiveness of the rental market, ensuring a potentially lucrative venture for real estate investors.
5. Other Factors Related to Real Estate Investing
- The Harrisburg job market is growing, providing a stable tenant base for rental properties.
- The city is home to colleges and universities, attracting students and faculty in need of housing.
- Harrisburg's affordability compared to the national average makes it an appealing destination for first-time homebuyers and renters alike.
- The proximity to major cities like Philadelphia and Baltimore enhances the city's connectivity and attractiveness for potential residents.
Considering these factors, investing in the Harrisburg real estate market appears to be a promising opportunity with growth potential and a range of appealing dynamics for investors.
