A sellers’ market in the midstate: Plenty of buyers and not enough homes

The Harrisburg region is considered a hot market nationally -- ranking 95 out for the top 300 metro areas -- according to Realtor.com's market index.

• Julia Agos/WITF
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  Julia Agos was a reporter and the host of All Things Considered for WITF.

(Harrisburg) – As coronavirus pandemic restrictions ease and interest rates remain low, many people are looking to buy homes in Central Pennsylvania. But buyers are facing some steep competition over the region’s limited housing inventory.

Adrian Smith, who is president of the Greater Harrisburg Association of Realtors, said it is a sellers’ market right now. The shortage of houses on the market is partially due to restrictions on construction during COVID-19 shutdowns and high prices on lumber.

Smith said some buyers are getting creative, agreeing to flexible move-in dates or offering to pay the seller’s Homeowners Association fees, transfer tax, or cover the seller’s closing costs.

“It’s the buyers getting kind of anxious and be like, ‘Ok, we are going to remove some contingencies to make it sweet for the seller,’” he said.

The trend started before the pandemic began and has picked up again recently.

“The Pennsylvania Association of Realtors and all the forecasting indicators of the economy think this could continue for a good year, many even longer,” said Tina Llorente, President of the Association of Realtors of York and Adams Counties.

The Harrisburg region is considered a hot market nationally — ranking 95 out for the top 300 metro areas — according to Realtor.com’s market index.

Llorente said she is working with many clients looking to move out of cities like New York, Washington DC and Pittsburgh.

“This past year has indicated that quality of life is really important,” she said. “They have some time and space to get away from the congestion of the urban areas, but yet we are still within a day’s drive. So, if they don’t need to be in the city, some people are finding the benefits we’ve already found in the midstate.”

Llorente says the high demand is also because Central Pennsylvania offers a lower cost of living with bigger homes and yard space as more people adjust to working from home long-term.