Pittsburgh Real Estate House Market
Real Estate Markets across the country fluctuate each year and each holds its own unique set of trends, prices, and homes. Buyers and sellers can find out what real estate agents see for the city’s housing future with a look into the Pittsburgh real estate house market. From days on the market to projected home value growth, those looking to invest in real estate can buy or sell with confidence with an in-depth look at the upcoming housing market in Pittsburgh.
Pittsburgh Real Estate House Market
Like many U.S. cities across the nation, the current Pittsburgh housing market is characterized by what real estate agents call a ‘seller’s market’. This means there is a high demand for homes and low inventory of homes for sale on the market. During a ‘seller’s market’ trend, average sales prices tend to increase as the demand for homes outweighs the available inventory. During this time, buyers may see a property sell for over its listed price and sellers may find their homes selling with multiple offers.
While 2020 showed housing inventory was low, 2021 is predicted to turn in the direction of a buyer’s market. As the new year begins and pandemic strides are shown a more predictable future, many sellers that have been holding off are now expected to jump into the real estate market. Real estate agents predict this should begin to even out the housing supply and demand.
For the past 5 years, home values in Pittsburgh have been on the rise. In 2020, the average price for a single-family home came in at a purchase price of $229,000. On average, median home values have risen around 10.6% over the previous year, helping many Allegheny County home owners build equity in their property investment. For 2021, experts predict housing prices to grow another 11.1% in the next year.
While the rising price of homes may make some buyers feel discouraged, they can easily capitalize on the property value gains in the future. Once Pittsburgh residents invest in a real estate property, they immediately begin to benefit from the increase in property value over the span of their ownership.
Given the competitive housing markets across the country, homes aren’t listed for sale very long. On average, homes are only remaining on the market for around 70 days. Some homes are even being snatched up in less than 30 days on market. Even with the fast-paced, hot housing market, list price ratios are showing houses are selling at almost 99% of list price. This means only a little over 1% of properties sold are going for less than the price tag they listed with.
Should You Buy Now?
High demand for housing and rising property values tend to make some buyers wary, but the current housing market in Pittsburgh is actually a great time to take the plunge. One main reason so many buyers are choosing now to purchase a home is due to the record lows in U.S. mortgage rates. For a portion of 2020 and into 2021, mortgage interest rates were below 3% for some mortgage home loans. This is the first time the interest rates have dropped below 3% since the Federal Reserve began recording them in the 1970s. While the average mortgage rate is a bit above 3% now, these lower rates are giving the average family more buying power than they would normally have.
Along with low mortgage rate options, buyers in the current Pittsburgh market are looking at investment property. As property values rise each year, homeowners are gaining quick equity in their real estate properties. Those who buy now will find their investment property might make them money in the future by a simple appreciation with the growing U.S. economy.
Pandemic Effect on Housing
As the global pandemic changed the lifestyles we knew, demand for housing altered along with it. Where trends used to show a preference for large cities full of amenities and areas with a mild climate, pandemic living has changed the priorities for many U.S. homeowners.
Research on the pandemic housing market shows buyers are flocking to areas outside major cities, where space and larger homes are available. As home employment rates rise to record highs, even more buyers are relocating completely now that a job office location isn’t a necessity. Some move to the Pittsburgh region from other large cities while others take the opportunity without a commute to the office to settle down in more rural areas.
Region and area preferences are also shifting as American’s adjust to a new normal with new priorities. While many typically sought out homes located near entertainment, dining options, or a workplace, some are now prioritizing homes located near healthcare facilities, top school zones, and outdoor activities.
In a hot housing market, many buyers are taking advantage of low-interest rates and shifting needs for their homes. With steadily rising property values and a stabilizing real estate market, now is the perfect time to invest in the new home you’ve been considering.