Home values are expected to fall this year in areas where supply is rebounding and prices seem overvalued, while regions like Pennsylvania will continue to see higher prices and bidding wars due to persistent inventory shortages, writes Carol Ryan for The Wall Street Journal.
According to the National Association of Realtors, the national supply of available homes has not yet returned to normal. In January, the existing-home inventories in the country were 16 percent below the levels recorded at the same time five years ago.
Homeowners who locked in ultralow mortgage rates have been reluctant to sell and give up their low borrowing costs. However, this has gradually been changing as more people can no longer postpone moving, increasing the housing supply.
But different states have been recovering at significantly different paces, especially when new construction is considered.
While some states, like Texas, now have more available properties than before the pandemic, supply remains tight in other areas. Pennsylvania and New Jersey are among 15 states where the number of homes on the market is less than half of pre-pandemic levels, which is keeping prices up.
Read more about home values and how Pennsylvania compares among the other commonwealths in The Wall Street Journal.
_____
