Pittsburgh hit its best year ever in 2015 in terms of its residential real estate market. Reports show that new house listings increased by 6.3 percent as compared to 2014, while closed sales increased by 8.1 percent. According to experts, this good run will continue to roll out this 2016.
"Healthy housing inventory levels and affordability remain key factors for continued optimism," Ron Croushore, CEO of Berkshire Hathaway Home Services The Preferred Realty Pittsburgh, stated in a press release. "More increases are expected in 2016, without significant anticipated impact on the real estate market."
Howard Hanna III, CEO of Howard Hanna Real Estate Services, predicts that last year's high numbers will pave the way for a great demand in the nearby communities. In fact, data shows that Pittsburgh and neighboring cities' populations have continued to grow as more students decide to stay after graduation, thanks to more employment opportunities.
"Five years ago, we probably really wouldn't be talking about East Liberty," Hanna told the Pittsburgh Post Gazette. "As demand got so great in the Shadyside area and then retail came back in East Liberty, buyers said, 'Well, it will cost me $500,000 to buy in Shadyside or $300,000 in East Liberty.'"
Neighboring communities that hit high home sales and price appreciation thanks to Pittsburgh's growing real estate market include Mt. Lebanon, Cranberry, Peters and Adams.
Moreover, Pittsburgh is enjoying a surge in first-time home buyers, thanks in part to rising rent in the area. Hanna reported that the percentage of first-time buyers who bought through their real estate company jumped to 37 percent in 2015, as compared to 2014's 28 percent.
Though analysts predict that mortgage interest rates will rise this year, real estate agents remain unperturbed.
"Momentum in both the city and the suburbs should continue into 2016, even if the pace slows as interest rates rise on mortgages and a lack of inventory limits buyers' choices," Hanna noted.
