2019 Expected Real Estate trends for PIttsburgh
Pittsburgh, Pennsylvania prides itself on being the “Gateway to the West”. Originality is seeping through this town – from its roots as a frontier village to the modern pride for one of the great football teams in America: the Pittsburgh Steelers. In addition to the originality and charm of Pittsburgh, the real estate seems to be on a positive trend. More people are finding an interest in this city and property values are rising. New neighborhoods with everything from gyms and restaurants to shops and salons are forming as well. Here are some expected real estate trends that homeowners and investors can look forward to in 2019.
According to Trulia, Pittsburgh market trends have had a 6% ($10,000) increase in median home sales over the past year. The Pittsburgh real estate market is predicted to rise by 9.5% in 2019. 4 bedroom homes are seeing the most increase on year over year prices, which has grown 10.4% (currently $292,500 median price) from 2018 to present. Two bedroom homes saw a low year over year increase of 4.3% whereas one bedroom homes increased a whopping 9.0% and 3 bedroom homes increased by 5.2%. Overall, homeowners are betting on another good year in the Pittsburgh real estate market with this upward trending curve.
The number of homes sold has been on a steady decline, most likely due to the rising prices of homes. This could cause the market to shift if this keeps up. As of January 2019, 1,435 homes have been sold, as opposed to the previous December where 1,962 homes were sold. February 2019 is on track to be slightly less than the 1,435 homes sold in January 2019.
Rental properties are on the rise as well as the cost associated with rent. As of February 2019, the median rent in Pittsburgh is $1,300. Just 4 months prior (October 2018), the median rent was $100 cheaper at $1,200. Based on the year of 2018, rental prices can increase or plateau until August 2019, in which they will decrease for a few months again.
According to Knock’s forecast for home deals, Pittsburgh is ranked 8th in the nation for savings when purchasing homes. People who bought homes in Pittsburgh in 2018 looked at saving an average of 5.93%. The average days a home was on the market for was around 27 days. Bring all this data together, and you get 70.34% of homes sold below their original listing price.
Looking towards the future, foreclosures can have a big impact on the value of homes in the future. To put it in perspective, the national average for foreclosed homes sits at 1.2 homes for every 10,000 homes. Pittsburgh is looking at 3.4 homes foreclosed for every 10,000. The cause of the foreclosure rate is that many homeowners from 2007 to 2011 are now upside down on their mortgage (otherwise known as mortgage delinquency). 8.4% of homeowners are upside down on their mortgage as of the beginning of 2019. This is about twice the rate compared to the normal housing market. However, this is still a much greater improvement than 2011, where 1 in 5 properties held negative equity.
Buyers should know that Pittsburgh is one of the least competitive markets in the United States. Making an exception for more modern neighborhoods being bid on by well-paid tech workers (due to Pittsburg making effort to re-dub itself as a high-tech hub), most of Pittsburgh homes should be an easy grab for anyone with great credit who is ready to pay.
Luxury apartments are starting to gain weight in the downtown Pittsburgh area. Buyers can expect a growth in new apartments and condos, as well as the creation of new neighborhoods with modern homes scattered throughout Pittsburgh. This forward push in growth further expands on the commitment that Pittsburgh will change for the better.
If you are debating on setting your sights on a new property in Pittsburgh, you can gather that it will be a good bet. Backed by years of data, and a steady increase in the tech industry as well as the Pittsburgh economy, this city will start showing up on more people’s radars. Even though the sales of homes are down, the data still points to having a positive growth for buyers. Rentals can still be high for those interested in renting. However, this also means that it is a great time to be a landlord in the Pittsburgh rental game. The taxes can get a tad high (property tax is 2.16%) however when compared to other markets, the taxes really are not that bad. Pittsburgh is in the early stages of a complete rebranding and redevelopment. If done successfully, the real estate is projected to boom and be a shining area for many real estate investors.