Pittsburgh Real Estate Market Strengthens at Year End

Pittsburgh Real Estate Market in the News

Good news on Pittsburgh’s latest real estate metrics.  According to this article in the Pittsburgh Business Times, home forclosures are down versus last year and likely will show down as well versus 2010.  That may be confirmation to some who have sensed that the Pittsburgh real estate market has been relatively strong the last several quarters.  As a Realtor in Pittsburgh, I can tell you that I am not seeing homebuyers and sellers hesitate as I have in the past about making decisions and the idea that buyers will get a lower price later certainly hasn’t been born out.

Also, Pittsburgh area home buyers are pleased with the continuation of record low interest rates.  Having grown up in the 1970’s when rates were in the teens, I can remember my parents fretting over the high rates they had to pay to buy a home.  Fortunately, the interest rates today to borrow money are absolutely the lowest that they have been in my lifetime and in that of my customers.  Knowing you can have long-term financing at the favorable rates that are being offered now is a powerful incentive to invest in a home now, when money is so cheap, relative to the last five or ten years.

Pittsburgh Home As Inflation Hedge?

I’ve also had customers tell me something that I hadn’t considered in terms of their purchase decisions.  Specifically, I’ve had home buyers in the Pittsburgh Real Estate Market tell me they feel that buying now with interest rates at record lows is a wise INFLATION HEDGE.  Hard assets like real estate are considered a safe haven versus currency inflation becuase you buy them with dollars today (usually through a mortgage) that will be repaid over a long time with dollars that are potentially devalued, or worth less due to inflation.  In essence, if inflation does go up, you borrowed larger dollars than you are paying back!  And the good news is that if inflation does rise, typically your house isn’t going to lose value because it is a hard asset and not just paper.  It’s the same reason many people buy other hard assets like investments in comodities, gold and silver, collectibles, art, etc.

In conclusion, I love owning a home in the Pittsburgh area, and not just becuase I think it’s a good investment.  I like it because its a place where my family comes together, we celebrate, we cry, and we love.  And it’s all at our house, with our golden retriever, Harley, who likes it too.  Thanks for a great year by the way, and remember, you can call me about ANY Pittsburgh real estate question you have with no obligation.  I just like talking about this stuff helping people where I can.