What drives property values in Pittsburgh to move up and down?
Home values are forever in flux. Typically, home values appreciate in the long term. But there is always a certain amount of risk in real estate, of course.
When your home appreciates you have a larger asset to borrow against, and you'll produce a bigger profit when you sell. But how will you be sure what you're purchasing now will appreciate over time? Property values in Pittsburgh fluctuate for numerous reasons. It's imperative that you pick a REALTOR® in Pittsburgh who understands the factors that influence local prices.
What is the most crucial factor impacting real estate appreciation? Many guess that it's the economy. Clearly, there are several issues on a national level that adjust your property's value: unemployment, mortgage rates, quarterly earnings reports, and more. However, your home's value and the aspects that play the biggest role in its appreciation are particular to the local Pittsburgh economy and housing market.
Location in a community - Proximity to schools and work also have a major effect on almost all home buyers' decisions. So when it comes to keeping their value, these areas usually appreciate much more reliably than areas lacking key features.
Trends in home sales - What's the time on market? What was the selling price versus the listing price? A lot of data can be obtained from public records, but a good agent with a login to the local MLS will usually provide a more complete picture.
History of appreciation - In the past 5-10 years, have property prices risen or declined? Does location or affordability affect how desirable the area is thought to be?
The local economy - Are local businesses hiring? Have companies moved into or away from an area? Is there a good combination of job types in an area, or does it depend on just one industry? Is the mix of commercial and residential zoning changing? Each of these things plays a role.