Monthly Market Indicators
Healthy buyer demand and constrained supply continue to be the story for much of the country. Nationally, showing activity in July remained substantially higher than a year before and multiple offer situations are a frequent experience in many markets. With the inventory of homes for sale still constrained, a competitive market for buyers shows little sign of waning.
New Listings in the Harrisburg region decreased 27.8 percent to 26. Closed Sales were up 83.3 percent to 33. Inventory levels fell 32 percent to 51 units.
Prices continued to gain traction. The Median Sales Price increased 5.4 percent to $250,000. Days on Market was up 25.5 percent to 73 days. Sellers were encouraged as Months Supply of Homes for Sale was down 46.8 percent to 4.9 months.
While the number of unemployment insurance weekly initial claims have been far lower in recent weeks than their peak in March and April, more than 1 million new claims are still being filed each week and more 31 million were claiming benefits in all programs as of early July, compared to fewer than 2 million in July 2019. Despite this significant economic impact, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels and home purchase mortgage applications up from a year ago, high buyer activity is expected to continue into the late summer and early fall market.
Housing Supply Overview
Strong buyer demand in the face of a constrained supply of homes for sale continues to be the story again this month. New construction activity, in the form of housing starts as reported by the Department of Commerce, has picked up in recent weeks but remains well below levels required to substantially increase the number of homes for sale. Continued low interest rates are expected to maintain healthy buyer activity, while reluctant sellers and the changing season are likely to drag the inventory of homes for sale lower into the late summer and early fall market. For the 12-month period spanning August 2019 through July 2020, Closed Sales in the Harrisburg region were up 42.4 percent overall.
The overall Median Sales Price was up 4.3 percent to $240,000.
Market-wide, inventory levels were down 33.8 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 32 5 percent That amounts to 3.0 months supply for Single-Family homes and 3.1 months supply for Condos.