Pittsburgh housing market: Everything you need to know

In recent years, the housing market across the United States has witnessed a series of significant shifts, with high interest rates, soaring prices, and limited inventory. However, it’s essential to remember that real estate trends are highly localized. What may be happening in one city can be vastly different from another. So, how is the Pittsburgh housing market faring amidst these market conditions? If you’re considering buying or selling a home in the area, here’s everything you need to know about the Pittsburgh housing market.

Pittsburgh Housing Market Overview:

Pittsburgh, known as the Steel City, has experienced trends similar to other U.S. cities. According to Redfin data, housing prices reached their peak at $270,000 in June 2022, but by March 2023, the median sale price had dropped to $217,000. The number of homes sold in March has also decreased compared to the previous year, and those that do sell are spending more time on the market. Nevertheless, sought-after neighborhoods like Squirrel Hill North, Regent Square, and Point Breeze remain competitive.

Key Statistics:

• Median home price: $217,000 as of March 2023, marking an 8.1 percent year-over-year decrease.
• Sale-to-list ratio: 96.4 percent, indicating that homes typically sell for 3.6 percent below their list price.
• Days on market: 68, which is 16 days longer than the same period last year.
• Closing costs: On average, 4.3 percent of the home’s sale price, making Pennsylvania one of the most expensive states in the country for closing costs (source: ClosingCorp).

Should You Buy or Sell in the Pittsburgh Housing Market?

Whether you should buy or sell a house depends on your individual financial situation and personal circumstances. Prevailing market conditions are important, but they aren’t the sole determining factor.

For Home Sellers:

Despite the market shift, now can still be an opportune time to sell in Pittsburgh. The Pennsylvania Association of Realtors reports a 2.88-month housing supply in March 2023, while a balanced market typically requires five to six months of supply. Additionally, Redfin data shows that over 23 percent of homes sold in March fetched more than their list price. While it may take a bit longer and require more effort, sellers can still find success in the current market.

For Homebuyers:

Pittsburgh offers relatively low home prices compared to the national average, with a median price of $217,000, significantly lower than the nationwide median of $375,700. However, it’s crucial to consider that mortgage rates remain high, potentially impacting your purchasing power. Set a realistic budget and get preapproved for a mortgage before house-hunting. For first-time homebuyers, Pennsylvania offers assistance programs to help cover down payment and closing costs, and additional city and county programs may be available.

Market Predictions:

While there has been speculation about a potential housing market crash, experts do not anticipate such an outcome. The current adjustments in Pittsburgh’s market, with falling prices and longer days on market, are viewed as a natural correction after a period of high activity. This suggests a return to a more stable and sustainable market, rather than a crash.

Conclusion:

With its diverse neighborhoods and dynamic real estate landscape, Pittsburgh presents both opportunities and challenges for buyers and sellers. A knowledgeable local real estate agent can provide invaluable expertise to guide you through the process. Keep in mind that while market conditions are important, your unique financial situation should be the ultimate factor in your decision-making.