Northeast Pennsylvania Housing Market Expected to Stabilize in 2026
Min 1: Median Prices Stayed Below National Averages
Median sales price for residential home in Luzerne County reached $221,800 in November 2025, up from $195,000 in November 2004 marking 13.7% increase over two decades according to county Multiple Listing Service data. That translates to less than 1% annual appreciation over 21-year period—well below national home price growth of 55% just since start of 2020. Charlie Kasko, Realtor for Classic Properties based in Kingston, doesn't envision drastic price swings throughout 2026, seeing them staying same or maybe slight increase of 2% to 3% over next 12 months. That's down dramatically from 13% to 14% annual increases market experienced during pandemic boom. Lackawanna County median price increased 4.9% from November 2024 to November 2025, rising from $235,550 to $247,000 according to Greater Scranton Board of Realtors.
Min 2: Closed Sales Decreased 3.6% Year-Over-Year
Number of closed sales decreased 3.6% from November 2024 to November 2025 in Lackawanna County, though realtors expect renewed interest starting next month. It's been pretty status quo according to broker Gianacopoulos who anticipates 2026 to be good market as everyone waits until next year seeing what happens with interest rates. Days on market have been longer than expected but that's also due to shift of what's going on with economy according to Levy—real estate tends to follow what world is doing. Terry Solomon-August, co-owner of Antonik and Associates Real Estate in Nanticoke and district vice president for Pennsylvania Association of Realtors, expects more stabilization in market for first time since COVID-19 pandemic with more sellers getting into market as lot of buyers out there haven't quite found what they're looking for at price they can afford.
Min 3: Regional Markets Avoided Pandemic Excess
Northeast Pennsylvania avoided worst of pandemic-era price appreciation that now reverses in Sun Belt and coastal markets. Markets that saw 13% to 14% annual increases during 2021-2022 now face years of price declines or stagnation as values mean-revert. But Pennsylvania markets with modest long-term appreciation avoided bubble dynamics. The 13.7% total appreciation in Luzerne County from 2004 to 2025 represents sustainable growth reflecting actual economic fundamentals rather than speculative excess. This positions region for stability through 2026 as overheated markets correct. First-time buyers in Pennsylvania pay less than buyers in expensive coastal markets while avoiding downside risk from price corrections. Median age for first-time buyers reaches 27 in Columbus, Indiana and 28 in Des Moines versus 36 in Los Angeles and San Francisco—affordable Midwest and Northeast markets enable earlier homeownership.
Min 4: Buyers Gain Negotiating Power as Market Balances
Less frenetic market gives buyers more options to compare properties and negotiate terms. During pandemic seller's market, homes received multiple offers within days requiring waived contingencies and above-asking bids. Now homes sit 42 to 48 days on market allowing buyers conducting thorough inspections, negotiating repairs, and including financing contingencies. Realtors confirm shift from chaotic to status quo creates healthier market dynamics. Sellers who overprice based on 2022 comparables now face reality of current demand—properties must be priced correctly for market conditions. Terry Solomon-August notes more sellers getting into market but they need pricing at levels buyers can afford, suggesting negotiation replaces bidding wars as homes that sat months finally transact at reduced prices acceptable to both parties.
Min 5: Investment Strategy Targets Affordable Stability
Northeast Pennsylvania represents investment thesis for rental portfolio operators seeking stable cash flows without bubble risk. An investor who buys $220,000 single-family home in Luzerne County with $44,000 down (20%) at 6.5% mortgage pays $1,113 monthly principal and interest plus $400 estimated taxes and insurance for total $1,513 monthly. Renting at $1,650 monthly generates $137 monthly cash flow after $1,513 debt service—8.4% cash-on-cash return on $44,000 equity while capturing principal paydown and modest appreciation. Markets with 2% to 3% annual price growth avoid speculation while providing inflation hedge. Portfolio strategy buying 10 properties over 12 months creates $16,440 annual cash flow on $440,000 equity deployed plus builds equity through debt paydown averaging $2,400 annually per property in early years—total $40,440 annual return on $440,000 represents 9.2% returns before appreciation.
The Takeaway
Northeast Pennsylvania housing market expected stabilizing in 2026 as days on market increased 14% to 20% with Lackawanna County rising from 42 to 48 days and Luzerne from 35 to 42 creating less frenetic conditions and more balanced buyer-seller dynamics. Median prices stayed below national averages with Luzerne County reaching $221,800, up 13.7% since 2004 translating to less than 1% annual appreciation versus 55% national growth since start of 2020, with realtors expecting 2% to 3% increases in 2026 down from 13% to 14% pandemic-era gains. Closed sales decreased 3.6% year-over-year in Lackawanna County though realtors expect renewed interest in 2026 as everyone waits seeing what happens with rates while more sellers enter market as buyers haven't found what they want at affordable prices. Regional markets avoided pandemic excess positioning for stability as overheated Sun Belt and coastal markets correct, enabling first-time buyers to purchase earlier with median ages at 27 to 28 in affordable markets versus 36 in Los Angeles and San Francisco. Investors buying $220,000 Luzerne County single-families with 20% down generate 8.4% cash-on-cash returns renting at $1,650 monthly plus principal paydown, with 10-property portfolio delivering $40,440 annual returns on $440,000 equity representing 9.2% returns before appreciation in markets with 2% to 3% growth avoiding speculation while providing inflation hedge.
