The Battle for Affordable Housing in Pittsburgh | 1-Minute Market Update w/ Martin

Is the housing market finally tilting in favor of buyers, or is it just a mirage? This week, we dissect the latest trends, revealing a landscape marked by cautious interest and strategic waiting. Mortgage applications have nudged up slightly, online home searches are on the rise, and inventory is expanding, giving buyers more options but also heightening competition. Despite these shifts, steep home prices and high-interest rates keep the market tense. We'll break down current data on home prices and interest rates, providing insights on whether to buy now or hold out for a better deal.

Join us as we shift our focus to Pittsburgh's bold attempt to tackle affordable housing. A new rule could mandate that 10% of units in large apartment buildings be designated for families earning under $50,600 annually. While developers argue against the financial strain this rule might impose, the city council's decision could reshape the housing landscape. Amid rising borrowing costs and a strained job market, there's a silver lining with easing inflation hinting at potentially lower interest rates. Tune in to get the latest pulse on both single-family homes and the multifamily sector, and arm yourself with the knowledge to navigate this complex market.

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Transcript

Speaker 1: 0:28

Affordable housing is coming to Pittsburgh. Should you act now or pay the price? But before that, let's take a look at this week's housing market data. Today is September 13th 2024, and this is your weekly real estate market update. Fewer people are applying for mortgages this week. It's up a little from last week by 2%, but it's way down from this time last year by 3%. Maybe people are getting cold feet or maybe they're just waiting for prices to drop. More people are googling homes for sale up 2% from last month, but it's still lower than last year, down 16% from a year ago. People are still interested, but maybe they're just window shopping or waiting for the right opportunity.

Speaker 1: 1:13

The typical price tag for a house is a whopping $388,085 and sellers are asking for even more. The average asking price is now $397,475. It's like they're playing a game of chicken and buyers hoping to see who will blink first. Buying a house now means a pretty big monthly mortgage payment With interest rates at 6.35%. The average monthly mortgage bill isa hefty $2,558, and that's without taxes, insurance and maintenance. That's a lot of money to fork over every month, especially if you're already struggling to make ends meet. The good news is there are more houses on the market than last year. Good for buyers. The number of new homes on the market has jumped by 4.6% and the total number of homes for sale has increased by almost 16.7%. That's a lot more options for buyers, but it also means more competition. The average time on the market is now 36 days, which is five days longer than last year. It's like houses are taking a vacation before they find a new owner. In conclusion, if you're thinking about buying a house, it's a good time to shop around. There are more options, but prices and interest rates might be a bit higher than you like them to be. Do your research, be patient and don't be afraid to negotiate. You might just find a hidden gem Happening over in the multifamily sector.

Speaker 1: 2:36

Pittsburgh is trying to make housing more affordable, especially for young people. They're proposing a new rule for apartment buildings with 20 or more units. About 10% of the apartments would need to be affordable for people making less than $50,600 for a family of four, which is half of the average income in Pittsburgh. They'd also get rid of some rules about parking lots and minimum lot sizes to make it easier to build new apartments. This is a controversial issue. Some people who build apartments developers don't like this because they say it would make all apartments more expensive. They'd rather the city give them money to help build affordable apartments. The city council will decide on this rule in early 2025. Of course, we would like for the city to give us money. It brings down the actual cost. Money is expensive, materials expensive and labor is expensive, so it makes sense that the developers in the city would prefer rent or some form of money from the city.

Speaker 1: 3:34

A recent study shows the job market is in shock. The housing prices are plummeting. So basically, there are a lot of challenges going on right now in the US that are making it harder for workers and businesses to get by. It sure is this is also affecting the housing market, especially apartments. The number of new houses being built is way down and is getting even more expensive to borrow money. It's been expensive to borrow money. It's getting a little bit better, but it's expensive to borrow money today.

Speaker 1: 4:08

There's a silver lining for people who invest in apartments. Because there are fewer new apartments being built, the prices of existing ones might not go down as much as they used to and since it's harder to buy a single family home, more people might want to rent an apartment instead. This is true. The cost of everything is going up. We got good news that the inflation numbers came in at 2.5% for the last 12 months. That's good. We're seeing inflation come down. Good, free interest rates We'll see interest rates coming down and that's exciting for real estate. And that wraps up this week's weekly real estate market update. I'll see you guys next week.