Harrisburg Housing Market Forecast 2024: Will it Crash? – Norada Real Estate Investments

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How is the Harrisburg housing market doing currently? The Harrisburg housing market is one of the hottest in the country, with a median sale price of $189,000 in November 2023, up 27.3% from last year. According to Redfin, homes are selling quickly, with an average of just 8 days on the market. This is due to a number of factors, including a strong local economy, low unemployment, and a growing population.

High Demand and Low Supply

The Harrisburg housing market is very competitive, with multiple offers being common on many homes. This is due to the high demand for homes and the limited supply. In November 2023, there were only 87 homes sold, down from 94 the previous year. This means that buyers need to be prepared to act quickly and make competitive offers if they want to get their dream home.


Buy/sell, rent/lease residential &
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Affordability

Despite the rising prices, the Harrisburg housing market is still relatively affordable. The median sale price is 55% lower than the national average, and the overall cost of living in Harrisburg is 1% lower than the national average. This makes Harrisburg a great option for first-time homebuyers and those looking for a more affordable place to live.

Hot Seller’s Market in Harrisburg

According to Realtor.com’s insight, the Harrisburg housing market is a hot seller’s market, with homes typically selling for close to the asking price and spending just 33 days on the market on average. This means that if you’re thinking of selling your home in Harrisburg, you’re likely to get top dollar for it and won’t have to wait long to find a buyer.

Median Listing Price of $230,000

The median listing price for homes in Harrisburg is $230,000, which is higher than the national average of $350,000. However, it’s important to keep in mind that Harrisburg is a much smaller city than the national average, so the cost of living is generally lower. When you factor in the lower cost of living, Harrisburg can actually be a very affordable place to buy a home.

Popular Neighborhoods

Some of the most popular neighborhoods in Harrisburg include East Harrisburg, Allison Hill, and South Allison Hill. These neighborhoods are all close to the city center and offer a variety of amenities, such as parks, schools, and shopping. They’re also home to a mix of housing types, from single-family homes to apartments, so there’s something for everyone.

Future Outlook

The Harrisburg housing market is expected to remain strong in the coming years. The local economy is expected to continue to grow, and the population is expected to continue to increase. This will put even more pressure on the housing market, and prices are likely to continue to rise.

If you’re thinking of investing in real estate, Harrisburg is a great option. The housing market is strong, and there’s a lot of potential for growth. With its low cost of living and proximity to major cities like Philadelphia and Baltimore, Harrisburg is a great place to live, work, and invest.

Harrisburg Housing Market Forecast 2024

According to Zillow, the average Harrisburg home value is $230,038, up 7.1% over the past year and goes to pending in around 8 days. (Data through November 30, 2023)

  • For sale inventory (November 30, 2023): 358
  • New listings (November 30, 2023): 184
  • Median sale to list ratio (October 31, 2023): 1.000
  • Median sale price (October 31, 2023): $203,300
  • Median list price (November 30, 2023): $213,300
  • Percent of sales over list price (October 31, 2023): 47.5%
  • Percent of sales under list price (October 31, 2023): 32.1%

In the Harrisburg MSA (Metropolitan Statistical Area) Housing Market Forecast, as of November 30, 2023, Zillow predicts a slight decline with a change of -0.1% by the end of December 31, 2023, followed by a further decrease of -0.6% by the end of February 29, 2024. Looking ahead to November 30, 2024, the forecast indicates a potential decrease of -1%.

The Harrisburg Metropolitan Statistical Area (MSA) includes various counties in the state of Pennsylvania. This region is identified by Zillow as RegionName: Harrisburg, PA. The housing market within this MSA is substantial, encompassing a diverse range of neighborhoods and communities.

Are Home Prices Dropping in Harrisburg?

As of October 31, 2023, there is no indication of home prices dropping in the Harrisburg housing market. The median sale price has actually experienced a 7.1% increase over the past year, reflecting a robust and appreciating market.

Will the Harrisburg Housing Market Crash?

Based on the available data and forecast from Zillow, there is currently no indication of a housing market crash in the Harrisburg area. While there may be minor fluctuations, the market appears stable and resilient, making it a favorable environment for homeowners and potential buyers alike.

Harrisburg Housing Market Forecast 2024
Source: Zillow

Should You Invest in the Harrisburg Real Estate Market?

1. Population Growth and Trends

The population growth in Harrisburg is a key factor contributing to the attractiveness of its real estate market. As of recent data, the city has experienced a steady increase in population, signaling a growing demand for housing. This upward trend is often indicative of a thriving community and a favorable environment for real estate investment.

2. Economy and Jobs

The strong local economy and employment opportunities in Harrisburg further enhance its real estate investment appeal. With major employers such as Hersheypark, The Pennsylvania State University, and Harrisburg University of Science and Technology, the city provides a stable job market, attracting residents and potential tenants. A robust economy typically translates to increased housing demand, making it an advantageous location for real estate investors.

3. Livability and Other Factors

  • Harrisburg offers a four-season climate, making it appealing to a diverse range of residents.
  • The city is located in a beautiful area with easy access to the mountains and the Susquehanna River.
  • Harrisburg is home to parks, trails, and rivers, providing recreational opportunities for residents.
  • Historical attractions such as the Pennsylvania State Capitol and the National Civil War Museum add to the city’s cultural appeal.

These factors collectively contribute to the overall livability of Harrisburg, making it an enticing location for real estate investment.

4. Rental Property Market Size and Growth

The rental property market in Harrisburg is significant, and its growth potential adds to the investment allure. With 47.5% of sales over list price and 32.1% of sales under list price as of October 31, 2023, the market dynamics indicate opportunities for investors. The median sale to list ratio of 1.000 emphasizes the competitiveness of the rental market, ensuring a potentially lucrative venture for real estate investors.

5. Other Factors Related to Real Estate Investing

  • The Harrisburg job market is growing, providing a stable tenant base for rental properties.
  • The city is home to colleges and universities, attracting students and faculty in need of housing.
  • Harrisburg’s affordability compared to the national average makes it an appealing destination for first-time homebuyers and renters alike.
  • The proximity to major cities like Philadelphia and Baltimore enhances the city’s connectivity and attractiveness for potential residents.

Considering these factors, investing in the Harrisburg real estate market appears to be a promising opportunity with growth potential and a range of appealing dynamics for investors.


References:

  • https://www.redfin.com/city/8380/PA/Harrisburg/housing-market
  • https://www.realtor.com/realestateandhomes-search/Harrisburg_PA/overview
  • https://www.zillow.com/home-values/11817/harrisburg-pa/

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