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Market Monday – June 24, 2024
NATIONAL
Home values hit an all-time high, although existing-home sales dropped throughout the US. That’s what a recent National Association of Realtors (NAR) report show. National data shows that existing-home sales dropped 0.7% in May, and 2.8% from one year ago. One contributing factor is the median existing-home sales price jumped 5.8% from May 2023 to $429,300 nationwide. This is the eleventh consecutive month of year-over-year increases. The national supply is growing and is inching towards a neutral market, at 3.7 months’ worth.
This rapid growth is keeping a lot of buyers out of the market. As the largest group of homebuyers, millennials are finding it more and more difficult to find affordable homes to purchase. The soon-to-be new commission structures may add to the affordability struggles of buyers as many sellers will no longer offer cooperating agent commissions to their homes.
LOCAL
Locally, Allegheny County, showed an increase in prices from May 2023 to May 2024 of 5.28% YoY, with a median sold price of $257,950[1]. A slight uptick in sales from 1214 to 1242 units in the month of May 2024 compared to 2023. The median sold price is up approximately 4% MoM and days on market (DOM) 12.5% to 35. Months of inventory is down almost 20% MoM to two.
However, these results vary wildly depending on the neighborhood. For example, looking at the northern suburb of Wexford, the median sold price in May 2024 was $515,000[2], which was a 4% increase month over month. There is only 1.23 months of inventory, which is a decrease of 25% MoM. Thirty-eight new properties hit the market in May 2024 with a median list price of $617,500, which is a 20% increase from April.
Months of inventory increased in the southern suburb of Mt. Lebanon[3], to 1.36, which was a 17% increase MoM. Homes are still having bidding wars, driving a 102.5% list-to-sold price. The median sold price came in at $402,000, which was down 11% from April 2024. Homes are selling quickly at 17 DOM, which was down significantly from April. Fifty-four properties came on to the market in May at a median list price of almost $465,000.
SUMMARY
Although regions vary widely, the Pittsburgh area is still very affordable compared to the national averages. However, we do not see the same markers, such as an increase in inventory that would slow the steady price increases, we’ve been seeing in the region.
[1] WestPenn MLS
[2] Realtors Property Resource, LLC.
[3] Realtors Property Resource, LLC.
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