In my previous article, I discussed the cooling down of the U.S. real estate market after almost two years of heat. For those looking to buy or sell properties, or invest in vacation properties in Pittsburgh you may be wondering how this shift has impacted the local market.
Discover the latest trends in Pittsburgh’s real estate market for 2023-24 as a direct result of recent shifts. Keep reading to uncover valuable insights.
Pittsburgh Housing Supply Trends
High-interest rates have almost doubled since the turn of 2022. This has caused a reduction in demand as many potential home buyers find themselves struggling to enter the market due to these prohibitive rates.
In August 2022, the Pittsburgh, Pennsylvania real estate market had an active listing of 1,512 homes for sale. This represents a +6.9% increase from July’s total of 1,414 homes on the market as per a recent survey.
The inventory increase varied based on the property size. Four-bedroom homes experienced the greatest increase at 8.7%, followed by three-bedroom homes at 7.9%. Two-bedroom houses saw a growth of 6.9%, whereas five and one bedroom homes had an increase of 5
Buyers can now take their time and view multiple properties without the need to rush their purchasing decision thanks to an increase in inventory. This surge has helped alleviate the intense competition for homes that arose during the Covid pandemic.
With interest rates on the rise, more people may delay their home purchases. This could increase inventory and potentially restrain or reduce home price gains.
Pittsburgh Houses Price Trends
A few months back, it was not uncommon for a seller to receive multiple offers above the asking price as buyers competed to purchase their home. On average, sellers would get several thousand dollars more than what they asked for due to this bidding war among potential buyers.
The competition was intense, and some buyers skipped the inspection process to attract sellers. Unfortunately, this strategy backfired for some as they bought expensive properties that needed repairs upfront.
Home sellers are gradually adjusting to the end of a hot property market, resulting in price drops and fewer offers when they list their properties. Some may need to consider accepting lower-priced buyer offers with concessions.
According to Realtor.com, home sellers in Pittsburgh reduced their prices by 19% in August 2022.
In July the median listing price was $249,000 while the median home sold price was $238K.
We are actively in the market every day, assisting buyers as well as sellers in finding the best deals – and currently, the only time sellers receive multiple offers is when their home is extremely desirable or in a prime location.
Homes Are Still Selling Fast in Pittsburgh
The time it takes to sell homes in Pittsburgh maintains its pace, with houses being on the market for around 48 days on average in July 2022 versus 49 days the previous year. This is despite a low demand and high-interest rates, as reported by Karta.
In August, it took 44 days on average to sell a home in Pittsburgh according to Zillow.com. This is a slight decrease from the median of 45 days recorded last year in 2021.
Buyers avoiding the market could result in a return to pre-pandemic levels where selling a home took an average of 64 days.
The number of homes sold per month has decreased despite stable time on market. In July, 656 homes were sold compared to 856 during the same period last year.
High interest rates can have a significant impact on potential home buyers’ purchasing power, reducing it considerably.
In December 2021, the interest rate on a 30-year fixed-rate mortgage averaged around 3.5%. Fast forward to September 2022, and that same mortgage’s interest has climbed significantly to
In December of last year, a $2500 monthly budget could secure you a cozy home worth $517,500. Howeverr, with current interest rates, the spending limit for your dream property has significantly dropped to only $399,750 – an astonishing difference of nearly $120k in purchasing power.
Mortgage Rates & Prices
As previously mentioned, interest rates are likely to rise further — so if you’re thinking about buying a house, I would advise you to act quickly because this could be the best time for you to purchase a house.
As mortgage rates rise for sellers, buyers may struggle to afford high home prices. This means that price adjustments will be crucial in determining how quickly your home sells.
Due to the limited availability of homes for sale, those who are looking to sell their property should consider setting a reasonable listing price and maintaining their property to attract more interest from potential buyers. This strategy will likely result in multiple offers for sellers in Pittsburgh.
More listings to choose from, as well as seller willingness to lower prices, will give buyers looking for a home some breathing room and more bargaining power.