Spring bringing signs of life to national, local real estate market

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 The spring weather is having a positive impact on the housing market on both the national, state and local level, with an overall increase in home sales. 

National Association of Realtors Chief Economist Lawrence Yun said he’s seeing market improvement. 

“Despite the stubborn elevated mortgage rates, new home sales rose 7% in March from a month ago and are up 6% from a year ago. A wide inventory availability – at 8 months’ supply – is helping newly constructed home sales to move forward,” Yun said. 

He also said that homebuilders’ focus on smaller-sized homes is  attracting buyers.  

The median price of newly constructed homes was $403,600, well below the $435,000 price from three years ago when builders were constructing larger-sized homes.  

Yun said the latest monthly gain is on top of annual gains of the past two years for homebuilders.  

However, existing homeowner home sales have struggled the past two years because of historic low inventory levels.  

He expects more inventory as life-changing events force some homeowners to give up their locked-in low mortgage rates. 

Mortgage applications to purchase homes are up 4.3% year-to-date, even though an application does not mean an approval or decision to enter the market. 

“Aside from inventory growth, lower mortgage rates will be needed to get homeowners to move,” Yun said. 

The residential real estate picture is even brighter in Pennsylvania.  

According to the latest report from the Pennsylvania Association of Realtors, home sales grew 21% in March over the previous month.  

There was a total of 8,230 home sales in March across the state, up from 6,751 in February.  

According to the PAR the market also saw a 2% increase in the median home sales price.  

The median sales price for residential properties in March rose to $285,000, up from $279,00 in February. The March 2025 median price is up about 5% year over year.  

Additionally, there was a nearly 10% increase in available inventory compared to February.  

 The number of homes listed in March was 32,761.  

“We traditionally see the real estate market reflect renewed energy in the spring,” said Bill Lublin, PAR president and a broker with multiple offices in the Philadelphia area. “Many home sellers tend to list their properties in the spring when the weather is warm and the blooming landscapes show their homes in the best light.”