With the homebuying search hotter than ever, Philadelphia and Pittsburgh were both named two of the cities in which buyers are searching well above the median list price, suggesting they can most likely afford a property there.
According to realtor.com®, nationally, those searching for a new property on the site are searching 9.1% below the median price point. The median listing price this spring was $315,000, with more than half of homebuyers looking for homes costing less than $288,888 on the site, a difference of $27,000. The site estimates the median household can afford to spend $245,000 on a home.
But there are two areas in the commonwealth that may offer more affordable options. In Pittsburgh, the median listing price was $189,950, but the average search price was $209,900, a difference of 10.5% or nearly $20,000. Pittsburgh was fourth on the list of cities where the gap between the median listing price and median search price was largest. Philadelphia was right behind, where the median listing price was $279,950, but the median search price was $305,024, a difference of 9% or $25,074.
“The price differences between what buyers are searching for, closing on, and what’s available on the market demonstrates just how big the gap is for entry-level home buyers,” said Danielle Hale, chief economist for realtor.com®. “Buying a first home has always been a challenge, but with such a slim number of entry-level homes available, it’s especially difficult now.”
The report also found that smaller homes, those between 750-1,750 square feet, have grown in value more than 12% faster than medium-to larger-sized homes, those at 3,000 to 6,000 square feet, which have seen value grow 3.4%.
The site found that nearly 100,000 homes in the $100,000 to $240,000 market would have to be put up for sale in order to fix the nationwide imbalance.