South Central Pennsylvania 2025 Housing Market Forecast

Guest Blog Post

Courtesy of Rebecca Foote
 Vice President of Mortgage Lending and Co-owner
Foote Capital

The South Central Pennsylvania 2025 Housing Market is expected to bring a mix of opportunities and challenges for buyers and sellers. While national trends provide valuable insights, the dynamics in our area will likely follow some of these patterns, with unique local nuances. Here’s what you need to know, including LOCAL takeaways:

 1. Modest Home Price Growth: Nationally, home prices are forecasted to grow by 2-4% in 2025, a more modest pace compared to recent years. For South Central Pennsylvania, this could mean a more stable market with opportunities for both buyers and sellers to make strategic moves.

2. Stabilizing Mortgage Rates: Mortgage rates are expected to average around 6% throughout 2025, providing buyers and sellers with greater predictability. Although buyers in our area may still face affordability challenges, but stabilizing rates could help more families take steps toward homeownership.

3. Improving Housing Inventory: The tight housing supply is showing signs of easing. Nationally, inventory is projected to rise by 11.7% in 2025, which could trickle into our local market. This may mean more options for buyers in our area, while sellers should prepare for increased competition.

4. Shifting Buyer Preferences: Buyers are increasingly prioritizing smaller, more functional homes over expansive open floor plans, reflecting a focus on affordability and sustainability. However, multigenerational living and single-buyer households are also growing trends, shaping demand in diverse housing options.

5. Rental Market Stability: Rental prices nationally are expected to remain flat in 2025. This may encourage some local renters to continue renting while they save for a home purchase, especially as wages rise. For investors, you may want to consider liquidating any investments you want to offload while inventory remains low locally.

While national trends provide a helpful framework, real estate is always hyper-local. Thankfully, South Central Pennsylvania’s housing market tends to be more resilient and stable than high-growth areas, meaning changes here are often less dramatic but still significant.

Whether you are considering buying, selling, or simply evaluating your options, staying informed and working with trusted professionals will help you make the most of 2025’s market opportunities.

Rebecca Foote
Vice President of Mortgage Lending and Co-owner
Foote Capital
717-609-4044
20 North Hanover Street, Suite 201
Carlisle, PA 17013
www.RebeccaFoote.com

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