Here’s where home prices in PA will rise the most in 2025, Zillow predicts. See how much

As home prices across the U.S. rise throughout 2024, more increases might be on the way next year, according to a new forecast.

The online real estate marketplace Zillow recently published its annual forecast for home prices and other market factors over the next year. According to the report, Zillow expects home values across the U.S. to climb by an average of about 2% through the end of 2024 and rise by about another 1% through June 2025.

Home prices across the country are already on the rise this year. May 2024, the most recent month with data available, observed average home values up 0.4% over April and 4.3% up year-over-year, according to Zillow.

In its report, Zillow said increasing housing inventory — currently up 23% nationwide compared to 2023 — could help prospective buyers find a home moving forward.

“While affordability challenges persist, this trend favors buyers, offering reduced competition, a wider selection of listings and more time to find the ideal home,” the real estate site wrote in its report. “Zillow forecasts the inventory pool to slowly refill as homes linger on the market longer, prompting more sellers to cut prices.”

So, what could be in store for some of Pennsylvania’s major real estate markets in 2024 and beyond? Here’s what we found in Zillow’s latest market forecast.

Pennsylvania housing prices and forecast

Pennsylvania homes are, on average, worth about $272,477 as of July, according to Zillow data. That mark is up roughly 5.3% over a year ago.

Of the 34 Pennsylvania metropolitan statistical areas Zillow analyzed in its latest forecast, the East Stroudsburg area is expected to observe the biggest average housing price increase at 3.8% by June 30, 2025. Pottsville (3.5%), Reading (2.2%) and Allentown (1.7%) are also predicted to observe significant average increases in home values in their areas.

The average home in East Stroudsburg is worth about $301,981 as of mid-July, Zillow reports — up roughly 5.5% year-over-year for the Pocono Mountains-area market. Meanwhile, homes in the Pottsville area (worth about $135,392 on average) are up nearly 13% year-over-year, while area homes in Reading (worth $245,368 on average) and Allentown (worth $286,421 on average) have seen their values rise by at least 8% over the last year.

No Pennsylvania metropolitan statistical area is expected to see a greater average loss in home value by June 2025 than DuBois, which is projected for a 5.3% average loss in value.

Below is a full list of predictions on how much home prices will increase or decrease from now through June 2025 in all 34 Pennsylvania metropolitan statistical areas analyzed by Zillow:

• Allentown: 1.7%
• Altoona: -2.5%
• Bloomsburg: -3%
• Bradford: -3.6%
• Chambersburg: 0.7%
• DuBois: -5.3%
• East Stroudsburg: 3.8%
• Erie: 1.2%
• Gettysburg: -0.2%
• Harrisburg: 0.3%
• Huntingdon: no change
• Indiana: -2%
• Johnstown: -4.8%
• Lancaster: 0.6%
• Lebanon: 0.7%
• Lewisburg: -1.3%
• Lewistown: 0.8%
• Lock Haven: -2.5%
• Meadville: -1.6%
• New Castle: 0.7%
• Oil City: 1.1%
• Philadelphia: 0.6%
• Pittsburgh: -0.8%
• Pottsville: 3.5%
• Reading: 2.2%
• Sayre: -0.6%
• Scranton: 1.1%
• Selinsgrove: -3.7%
• Somerset: -0.3%
• State College: -1.6%
• Sunbury: -2%
• Warren: 1.6%
• Williamsport: -1.6%
• York: 0.8%

Checking in with Centre County’s housing market

Zillow predicts State College will observe a roughly 1.6% drop in home values by next summer, but what does local data have to say?

According to the Centre County Association of Realtors, June 2024 produced a median sale price of $357,500 for homes sold in the area — down 10.4% from May and down 3.4% year-over-year. New listings (129) were also down from May, while closed sales (140) were up 6.1% from the prior month.

Centre County homes sold in June spent an average of 24 days on the market, but the median was just seven days.

An NBC News report recently pegged Centre County as one of the least affordable counties in Pennsylvania for prospective buyers. The county received poor marks for high competition in the area and was ultimately deemed “unaffordable” — a label NBC News framed as meaning a median-income household could not afford a median-priced home.