Pennsylvania, with a rich history dating back to as far as the 1600’s, is one of the oldest states in the country. Originally given to the Quaker William Penn in 1681 (for whom it was named after), it has maintained a strong European farming culture to this day. 58,000 farms, which represent a large portion of the state’s economy, are spread throughout the state. Historical events such as the signing of the Declaration of Independence, the writing of the Constitution, and the Battle of Gettysburg have all taken place in the state.

The nation’s economy relies heavily on the production that comes from the state. Pennsylvania is one of the leading producers in chemicals and pharmaceuticals, food products, and electronic equipment. The two largest cities, Philadelphia and Pittsburgh, are home to many of the biggest businesses in the country as well. Although most of the state is rural, the cities offer a rich metropolitan environment. Philadelphia, the largest city with 1.4 million people, has a very diverse and exciting downtown. Numerous attractions fill the city including museums, sports centers, shopping markets, and so on. The city is also home to many of the nation’s firsts. The first zoo, hospital, bank, library, and more were established in Philadelphia many years ago. Read more »

The housing market in Pennsylvania has not been affected as much by the economic downturn than in most states. The production and farming industries have less effect from a bad economy. A stronger economy has helped the state to maintain housing price levels at a minimal decline. With higher housing prices, builders can benefit from increased revenues and continue to develop the state. Low foreclosure rates have also helped to keep a healthier housing market for the state. Rates were among the lowest in the nation.

Sales Trends
Housing sales for 2008 were lower in volume than in other states, but higher in revenue due to the steady average home price. The Philadelphia market had a total of 6,246 closings for 2008. Most of the market share for the area was distributed fairly evenly; highest (Pulte Homes) was only 6.1%. A more detailed look at the market share distribution for the city is available here.
Numerous builders in the market, competing for market share, have created healthy competition for consumers. Builders are focusing on higher quality homes and personable customer service to gain sales. Smaller businesses that have a more personal, customer focus have a greater chance to succeed without fear of getting swept under by larger, national companies with lower prices. As the demand for higher quality homes continues, builders can benefit from increased interest in the new housing market for areas throughout the state.

Other Key Trends
The Pennsylvanian economy can profit from an increase in new home in the years to come. The construction wages in the state are much higher than the rest of the country. As housing sales regains momentum, large numbers of construction workers will be needed to build new homes. With wages around $10,000 more than the national average, more money will be put into the hands of Pennsylvanian residents; money that will go right back into the state’s economy. Higher construction wages will also attract workers from out-of-state who will in turn need to buy new homes as they relocate.  « Close »