Monthly Market Indicators
Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.
New Listings in the Harrisburg region decreased 43.3 percent to 17. Closed Sales were up 75 percent to 7. Inventory levels fell 67.1 percent to 24 units.
Prices continued to gain traction. The Median Sales Price increased 7.0 percent to $275,000. Days on Market was down 7.9 percent to 86 days. Sellers were encouraged as Months Supply of Homes for Sale was down 79.1 percent to 1.1 months.
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.
Housing Supply Overview
Buyer demand continued to be robust in February, leading to many multiple offer situations as housing supply continues to remain severely constrained in most segments. This imbalance of prospective buyers to available homes for sale will continue to support multiple offers and, with it, higher home sales prices, as we go into the typically busy spring market. For the 12-month period spanning March 2020 through February 2021, Closed Sales in the Harrisburg region were up 23 percent overall.
The overall Median Sales Price was up 8.3 percent to $242,500.
Market-wide, inventory levels were down 67.1 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 48.5 percent. That amounts to 1.5 months supply for Single-Family homes and 2.1 months supply for Condos.