The Harrisburg housing market has been making waves recently, becoming one of the hottest markets in the country. With a median sale price of $189,000 in November 2023, marking a remarkable increase of 27.3% from the previous year, it's clear that Harrisburg is a city on the rise. But what does the future hold? Let's take a closer look at the Harrisburg housing market forecast for 2024.
High Demand and Low Supply
One of the reasons behind the housing market's success is the high demand for homes coupled with limited supply. Multiple offers on homes have become the norm, making it a competitive market for buyers. In November 2023, only 87 homes were sold, down from 94 the previous year. This means that buyers need to act quickly and make competitive offers to secure their dream home.
Affordability
Despite rising prices, the Harrisburg housing market remains relatively affordable. The median sale price is 55% lower than the national average, and the overall cost of living in Harrisburg is 1% lower as well. This makes Harrisburg an attractive option for first-time homebuyers and those looking for a more affordable place to live.
A Hot Seller's Market in Harrisburg
According to Realtor.com, the Harrisburg housing market is a hot seller's market. Homes typically sell for close to the asking price, and they spend an average of just 33 days on the market. If you're considering selling your home in Harrisburg, you can expect to get top dollar for it and find a buyer quickly.
Popular Neighborhoods
Some of the most popular neighborhoods in Harrisburg include East Harrisburg, Allison Hill, and South Allison Hill. These neighborhoods offer a variety of amenities such as parks, schools, and shopping, catering to different housing preferences from single-family homes to apartments.
Future Outlook
The future of the Harrisburg housing market looks promising. With the local economy projected to continue its growth and the population expected to increase, the housing market is likely to face even more pressure, resulting in rising prices. Investing in real estate in Harrisburg is an excellent opportunity for those looking for long-term growth and potential returns.
Source: Zillow
Should You Invest in the Harrisburg Real Estate Market?
Here are five key factors to consider when deciding whether to invest in the Harrisburg real estate market:
1. Population Growth and Trends
Harrisburg has experienced a steady increase in population, indicating a growing demand for housing. This upward trend suggests a thriving community, making it an appealing location for real estate investment.
2. Economy and Jobs
Harrisburg boasts a strong local economy with major employers like Hersheypark, The Pennsylvania State University, and Harrisburg University of Science and Technology. A stable job market attracts residents and potential tenants, contributing to increased housing demand.
3. Livability and Other Factors
Harrisburg offers a four-season climate, easy access to mountains and the Susquehanna River, as well as parks, trails, and recreational opportunities. Historical attractions like the Pennsylvania State Capitol and the National Civil War Museum add to the city's cultural appeal, enhancing overall livability.
4. Rental Property Market Size and Growth
The rental property market in Harrisburg is significant, with competitive dynamics offering opportunities for investors. With 47.5% of sales over list price and 32.1% of sales under list price as of October 31, 2023, the market proves lucrative for rental properties.
5. Other Factors Related to Real Estate Investing
The growing job market, presence of colleges and universities, affordability compared to the national average, and proximity to major cities like Philadelphia and Baltimore further enhance the appeal of the Harrisburg real estate market.
Considering these factors, investing in the Harrisburg real estate market appears to be a promising opportunity with growth potential and appealing dynamics for investors.
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