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Buying a House in Pennsylvania
How is the Pennsylvania housing market forecast? How much is an average price of a house in Pennsylvania? What cities in Pennsylvania have the best bang for the buck on homes and the best school districts. How is home prices in Pennsylvania compared to the rest of the nation. How is the economy and job market in Pennsylvania. How is the cost of living and taxes in the state of Pennsylvania. Is Pennsylvania a good place to raise a family. Is is smart to relocate to Pennsylvania from other states? What states are people moving from to Pennsylvania. What are the best cities with the lowest crime rate and affordable housing in PA a homebuyer from out of state should look at in Pennsylvania.
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4 Replies
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I will give you my most recent information. However, please be aware that real estate markets can change rapidly. Here is a look at the Pennsylvania housing market and related factors:
Pennsylvania Housing Market Forecast:
The market has remained relatively steady, and moderate growth is expected. However, forecasts may differ for specific regions within the state.
Average House Price:
As of early 2024, an average house in Pennsylvania costs around $250,000 to $270,000. However, this figure can vary greatly depending on where the state is located.
Best Value Cities with Good School Districts:
- Pittsburgh suburbs (e.g., Mt. Lebanon, Upper St. Clair).
- State College.
- West Chester.
- Mechanicsburg.
- Wyomissing.
These cities generally offer affordable homes coupled with quality education.
Pennsylvania Home Prices vs. National Average:
In general, Pennsylvanian home prices are lower than the national average, which makes it a more affordable option than many other states, particularly those along the East Coast.
Economy and Job Market:
As a diverse economy, healthcare, education, and technology manufacturing are its strongholds, while Philadelphia and Pittsburgh provide various job opportunities. Unemployment rates have been close to nationwide figures.
Cost of Living and Taxes:
Living costs are usually below par outside major urban centers, though not so much compared to the US. The flat income tax rate is 3.07%, among the lowest countrywide. Property taxes vary widely by locality.
Family-Friendly Environment:
With good schools, diversity and recreation options abound, making PA one of their best bets for raising families.
Relocating to Pennsylvania:
Whether or not it would be wise depends on personal situations, employment prospects, preferences, etc. Some people find this state attractive because they want city life and natural beauty spots nearby, such as mountains, rivers, lakes, etcetera.
States People Are Moving From:
There has been an influx from neighboring states like New York and New Jersey and far-off places such as California and Florida.
Best Cities with Low Crime Rates and Affordable Housing:
- Bethlehem
- Lancaster
- York
- Erie
- Allentown
- Scranton
These cities offer a good balance of safety and affordability, although individual parts of town may differ greatly in those regards.
While these figures give us some idea about what might happen during any given year, they only provide an overview, so one should further investigate any market they consider entering. For up-to-date, accurate information, consult local real estate professionals.
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Overview of the Pennsylvania Housing Market
Forecast for the Housing Market
Pennsylvania’s housing market is growing steadily, with a moderate increase in home prices. The main factors contributing to this development are the stable economy, relatively cheap living costs, and rising demand for suburban and urban areas.
Average Prices of Homes: According to recent data, an ordinary house in PA costs around $240,000, which may vary widely depending on location.
Cities With Best Value and School Districts
Best Bang-for-Your-Buck Cities
Pittsburgh:
- Housing: Affordable compared to other major cities; its median price is approximately 220k dollars.
- Economy: The city has a diverse economy with strong healthcare, education, and tech sectors.
- School Districts: The schools here are highly rated, especially in suburbs like Mt. Lebanon and Upper St Clair Township.
Harrisburg:
- Housing—The Median home price is around $180k, offering good value for money when buying residential properties within this area code.
- Economy -The government employs many people, and the service industry also thrives here, thanks largely to its strategic location along the I-83 corridor.
- This connects Baltimore, MD, with Scranton, PA, through the Harrisburg metropolitan area.
- Thus making easy access possible between these two states and the rest of the parts of the northeastern US.
School Districts: Cumberland Valley & Central Dauphin are some schools worth mentioning because they have excellent academic performance records over the years past.
Allentown:
- Housing — Median cost of about 220 thousand dollars.
- Economy—It has growing manufacturing industries and healthcare services, including logistics, used by companies like Amazon.
- School districts—Parkland East Penn school districts top the rankings based on their educational quality levels achieved so far while serving local communities’ needs best, according to them. The next closest rival district, Bethlehem Area S D, etc., follows closely behind.
Lancaster:
- Housing — The median price is 240k dollars, which is quite affordable for most families.
- Economy—Agriculture is the backbone activity supported strongly by healthcare manufacturing sectors, which are equally important since they provide job opportunities for many residents who need to meet daily requirements.
- School districts—Manheim Township Hempfield schools rank high up there among the best-performing ones across the county region, as far back as records can recall, indeed without any doubt whatsoever.
Home Prices Compared to National Average
The numbers show that houses in Pennsylvania cost less than the national average. This could make it an attractive place for someone who wants to buy a house but doesn’t have much money.
Economy and Job Market
- Pennsylvania has a diverse economy with strengths in healthcare, education, manufacturing, and technology.
- Philadelphia and Pittsburgh are major job markets, while Harrisburg also stands out.
- Unemployment rates are usually near or at par with US figures on average annually recorded over the past years.
Cost of Living and Taxes
Living costs are generally lower than nationwide due to cheaper housing options available within state lines.
Taxes: Commonwealth PA levies a flat tax rate of 3.07% on each income category. There is also a heavy property tax burden, particularly in suburbs boasting top-notch school districts.
Family-Friendliness and Relocation Considerations
- Families relocating to Pennsylvania will find many communities that cater to their needs.
- Pennsylvania has good schools, low crime rates, plenty of parks and recreational facilities, etc.
- Those looking for affordable homes should consider moving here.
- Given stable employment opportunities and lower living expenses than elsewhere in America today.
States People Are Moving From to Pennsylvania
- Many people are migrating to Pennsylvania from states with higher living standards, such as NY, NJ, CA, etc.
- They do so because Pennsylvania offers relatively cheap living coupled with quality.
- Greatest municipalities have small crime percentages plus low-priced houses.
State College:
Crime Rate: Very Low.
Housing: Around $290,000 is the median cost of a home.
Economy: Predominantly Penn State University-based.
Schools: Good school district.
Emmaus:
Crime Rate: Very Low.
Housing: Around $260,000 is the median cost of a home.
Economy: Close to Allentown with access to many different job markets.
Schools: East Penn School District.
Wyomissing:
Crime Rate: Very Low.
Housing: Around $280,000 is the median cost of a home.
Economy: Reading is nearby, which provides employment opportunities.
Schools: Highly ranked Wyomissing Area School District.
Doylestown:
Crime Rate: Very Low.
Housing: Around $400,000 is the median cost of a home.
Economy: The local economy is strong, with the healthcare and education sectors being the dominant employers in this region.
Schools: Central Bucks School District.
Upper St. Clair:
Crime Rate: Very Low
Housing: Around $350,000 is the median cost of a home.
Economy: Suburb of Pittsburgh with access to various job markets within driving distance from here.
Schools: Upper St.Clair School District
The Keystone State has many attractive options for those shopping around for houses. This holds especially if they want good schools, stable employment, and affordable living. With its lower standard of living coupled with diverse industries, Pennsylvania should be a top priority for any person hoping to move or settle down. However, it’s worth considering that specific needs might necessitate evaluation among different cities or regions within PA.
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I have been a fan and avid follower of GCA Mortgage Group and the team at Gustan Cho Associates for many years. I am renting a $2,000 house in Minneapolis, MN and relocating to Allentown, Pennsylvania due to a new job opportunity. I like to buy a house before I move and like to purchase a home versus renting. I am a first-time homebuyer and would like how i can qualify for a home loan with very little money or no money down. What are the steps to qualify for a home loan and get pre-approved? What are the steps of the mortgage and homebuying process. If you could elaborate and detail every aspect of the steps of the homebuying and mortgage process for a first-time homebuyer, it would be greatly appreciated. If you can detail the various first-time homebuyer program for first-time homebuyers in Pennsylvania, I would be eternally grateful. Thank you in advance.
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Thank you for asking your question. This is a frequently asked question at GCA Mortgage Group and Gustan Cho Associates, so it will help out many of our viewers and first-time homebuyers. Congratulations on moving from Minneapolis to Allentown, Pennsylvania, and on the new job! Let’s talk about buying a house and getting a mortgage as a first-time homebuyer, emphasizing low—or no-money-down options and programs available in PA.
Step 1 on the homebuying and getting pre-approved journey:
- Evaluate Your Finances.
- Check your credit score and report.
- Calculate your debt-to-income ratio.
- Figure out how much you can afford for monthly payments.
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Step 2:
- Look Into First-Time Homebuyer Programs
- Pennsylvania has many programs for first-time homebuyers.
- PHFA (Pennsylvania Housing Finance Agency) First-Time Homebuyer Program.
- Offers low-interest mortgage loans.
- Down payment and closing cost assistance grants.
- Requires completion of a homebuyer education course.
Keystone Home Loan Program:
- Competitive interest rates.
- It can be combined with a down payment and closing cost assistance grants.
Keystone Government Loan Program:
- This is specifically for FHA, VA, and RD loans.
- Offers down payment and closing cost assistance grants.
Keystone Advantage Assistance Loan Program:
- Provides second mortgage loan up to 4% of purchase price or appraised value (whichever is lower) for down payment and closing cost assistance grants.
HOMESTEAD Down Payment and Closing Cost Assistance Loan:
- Offers up to $10,000 in down payment and closing cost assistance grants
Step 3: Federal Loan Programs
FHA Loans:
- Down payment as low as 3.5%.
- More lenient credit requirements.
- Borrowers can have credit scores down to 500 FICO.
- Borrowers with credit scores under 580 FICO require a 10% down payment, compared to 3.5% for homebuyers with at least 580 credit scores.
VA Loans (for veterans and active-duty military):
- No down payment is required.
- No private mortgage insurance.
USDA Loans:
- No down payment is required.
- For rural and some suburban areas.
- Maximum debt-to-income ratio: 29% front-end and 41% back-end.
Step 4: Get Pre-Approved for a Mortgage
- Collect necessary documents (pay stubs, bank statements, tax returns).
- Choose lender(s) to apply for pre-approval with one or more lenders.
- Receive a pre-approval letter stating how much you can borrow.
Step 5: Find a Real Estate Agent: Look for an agent who knows Allentown well and has experience working with first-time buyers.
Step 6: Begin House Hunting
- Determine your needs vs wants in a home.
- Visit homes within your price range.
- Consider commuting to work from the new home.
Step 7: Make an Offer on Your Dream Home
- Your agent will guide you on what is considered a fair offer.
- Negotiate terms with the seller if needed.
Step 8: Get the House Inspected
- Hire a professional home inspector to check the property’s condition.
- Review inspection reports and negotiate repairs as necessary.
Step 9: Finalize Your Mortgage Application:
- Provide additional documentation requested by the lender(s).
- The lender orders an appraisal of the property.
Step 10: Review and Sign Closing Documents
- Thoroughly read all documents before signing.
- Bring certified funds for closing costs/down payment.
Step 11: Close on Your New Home!
- Attend closing meetings, sign the final paperwork, and be handed keys to a new home.
Additional First-Time Buyer Tips in PA:
- Take advantage of homebuyer education courses offered through PHFA or HUD-approved counseling agencies.
- Consider the Mortgage Credit Certificate (MCC) program for a potential tax credit of up to $2,000 per year.
- Research employer-assisted housing programs, as some Pennsylvania employers offer down payment assistance.
- Check with the City of Allentown for local first-time homebuyer programs or incentives.
- Be prepared for property taxes, which can vary greatly depending on the county/municipality in PA.
- Factor in the cost of homeowners insurance, which may be higher due to flooding or other risks in certain areas.
Begin the procedure early because collecting papers and getting permission takes time. It is also important to involve experts who know about Pennsylvania’s legislation and schemes.
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