When we all started to quarantine in March to avoid COVID-19, we expected the real estate market to take an enormous hit. We predicted the housing market would freeze up because people were going to stop looking for new homes—especially as their personal finances grew uncertain. Our prediction was wrong. Instead, the Pittsburgh real estate market has grown rapidly through COVID-19.
Why COVID-19 Has Been Helpful to Sellers
Our office has been working around the clock in recent weeks to accommodate the flood of business coming through. Surprised, we looked for an answer: It is currently a seller’s market.
Here’s why: Inventory took a dramatic dip during the shutdown. This hasn’t really recovered. Instead, fewer sellers are putting homes on the market, which has created an inventory shortage. With fewer houses available, buyers are making generous bids to move.
At the beginning of June, we listed three homes in one weekend. Each of them sold by the end of the day on Sunday. The offers simply flooded in. One of them, a home in Westmoreland, was listed at $155,000. It received seven offers and sold at $181,000! This was great for the owners, who initially bought it at $123,000 and added only $5,000 (and a lot of sweat equity!) in upgrades. Another home nearby in Regent Square received multiple offers over the 48 hours it was on the market.
These hot houses sold almost immediately!
The Impact on High-End Buyers and Homes Over $600,000
While lower-end homes are selling quickly, homes selling for around $600,000 or more are staying on the market longer—and there is about an 8% uptick in their inventory. Higher-end buyers have more leverage now and are taking more time to make decisions on what they want to buy. Many of the homeowners looking to downsize out of these homes aim to do so before a looming recession, so they are motivated to grant higher-end buyers a better deal.
You don’t have to be a millionaire to take advantage of this moment! If you’ve ever thought about moving into your dream home, now may be your perfect opportunity. High-priced homes are now more likely to sell for less than their worth.
Professional Industries Remain Strong—Which Supports Real Estate
Pittsburgh is home to a few major industries, including Tech, Health Care, and Higher Education. These industries remain strong despite COVID-19, and these companies continue to invest in their personnel and attract new people to the region. Many of these professionals remain secure in their jobs and remain confident in their housing purchases.
A Healthy Real Estate Market
Overall, the Pittsburgh real estate market remains healthy despite COVID-19. If you’re selling a home for less than $600,000, you may find yourself enjoying a bidding war as individuals are more willing to pay more than your house is worth to outbid competing buyers. If you’re looking to buy at this moment, you may find great deals in more expensive housing. As owners of $600,000+ houses look to downsize, many are anxious to sell as quickly as possible.
Looking Ahead
If we’ve learned anything from 2020, it is that the world can change quickly. Looking ahead, we do predict that an inevitable recession will decrease buying power for aspiring homeowners, and we expect that purchase prices will drop
If you have questions about the current market, contact us at theblocks@blocksintheburgh.com or 412.926.7976. We’d love to talk with you!
Cheers,
Julie & Ted