Realtor: Pa. homebuyers have about 60% fewer houses to choose from compared to six years ago. Here’s why that matters

Al Perry, president of the Pennsylvania Association of Realtors, said that fewer homes on the market and slower dealflow does not mean there aren’t interested home buyers.

“We’re operating at about half that listing inventory now that we had just back then 2017,” Perry said.

It’s a combination of factors including inventory, prices, and interest rates. There’s also been a dearth of new homes being built while one of the largest generations, millennials, have hit their peak home buying years.

Perry said it’s a “pretty interesting dynamic out there,” but he’s noticed some relief in interest rates in terms of how much lenders are offering to potential buyers.

“We’re seeing some rates under 7%. If you’ve got premium credit you’re seeing some [rates] in the mid-sixes, depending on your down payment. So we have seen some relief there,” he said.

While the Federal Reserve sets the underlying rate — known as the Federal Funds Rate — it’s up to mortgage lenders to decide how much to charge customers.

The median sale price for a home in Pennsylvania was $217,537 last month, up from $214,000  in October 2022. The average 30-year fixed mortgage interest rate was 7.63 % in late October, compared to 6.92% last year.