Pennsylvania
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Property Taxes in Pennsylvania

Property taxes will be a significant factor as it relates to your mortgage payments, and property taxes can differ considerably depending on the county. In Philadelphia County, for instance, can be less than 1% but well over 2% in other counties. As with most property taxes, these go to fund local services such as schools and roads. Also. as in most states, it may be possible to claim an exemption through the homestead or disabled veteran exemption.

Homeowner Insurance

Thankfully, you can find relatively inexpensive homeowners insurance in Pennsylvania, some of the least expensive insurance in the country in fact, thanks to the low risk of natural disasters such as floods or tornadoes or earthquakes in the state. The average policy could cost you as little as $800 per year.

The Pennsylvania FAIR Plan can offer you basic homeowners insurance in the event that you can't secure insurance privately.

Pennsylvania Closing Costs

Make sure you realize how much you could be paying upfront by way of closing costs. The first to consider is your home inspection—prior to finalizing your contract, you need to hire a home inspector to inform you of the state of the house you'd like to buy. There are laws on the books in Pennsylvania pertaining to what a home inspector should cover and what they are not allowed to do.

You can expect to pay between $300 and $500 depending on the size of your house. These inspections will examine the condition of the roof, electrical, plumbing, and structure systems to help you make a better estimation as to the home's actual value.

Closing costs will also include fees for having all final documents signed, the price of which depends on the location, and costs for your lender and anyone else involved in the mortgage and the property itself.

In all, closing costs can run you between 3.3% to 6.1% of the home's value. Part of this amount will be due to your mortgage lender by way of origination fees which can include underwriting the loan, broker charges, tax service, commitment fees, points, and preparation of documents.

The cost of any attorney who is retained, flood certification, appraisals, surveys, and credit reports will fall under closing costs as well. Your lender will probably charge you for a title insurance policy as well to cover the lender’s interest on your property to protect themselves from any potential losses stemming from a title dispute on the property such as unpaid taxes, liens, easements or other issues.

Pennsylvania Housing Market

The state of Pennsylvania is home to nearly 13 million people, making git the 6th-largest in the US by population. The biggest cities include Philadelphia, Pittsburgh, Allentown, Erie, and Reading, with Philadelphia being the 6th-most populous city in the nation.

Homebuyers and homeowners both are in a good position in Pennsylvania when it comes to homes with negative equity, the percentage of homes decreasing in value, and the number of days a home tends to stay on the market. The cities with the strongest housing markets in the state are Castle Shannon, Broomall, Franklin Park, Plum, and Shiloh. The average number of days a home will stay on the market in Pennsylvania is 193 days, and the median home price statewide comes to $171,900.

Home in larger cities like Philadelphia will not surprisingly cost you more and are in high demand. All things considered, however, the city is considered an affordable place to buy a home: median home values being $157,500 and median listing prices $229,900 as of September 2019. Home prices rose 4% between 2018 and 2019.

Pittsburgh is also a desirable place to live, with median home values at $146,600 and the median home price at $225,000.