Supply Of Under $25k City Properties Dwindling? (Pittsburgh, McKeesport: for sale, real estate)

[HarryRSpooner]

While I've only been in Pittsburgh for a few years I have noticed properties in nearly ALL City neighborhoods are up. There are fewer and fewer inhabitable properties under $25,000.00 any more. The days of the under $15,000.00 properties seem to be gone. At least when it comes to Zillow and even Craigs List. Is anyone else noticing the same? Just curious!

[SteelCityRising]

I've most certainly noticed this myself. I blame investors, "flippers", and career landlords for turning what should be a home into a commodity. All I've wanted is what has been fortunate enough to have happened for PreservationPioneer, who was able to move here, pay roughly $10,000 cash for a tiny yet liveable rowhouse in Stowe Township, and make it cozier and more "homey" over the years. He's recently sold that to someone (hopefully not to an investor or absentee landlord).

The housing prices in Homewood especially shock me. I suppose it can't truly be the worst neighborhood in the city if prices here are higher overall than they are in places like Beltzhoover or Fineview in many cases. Each and every time a small liveable house here on Polish Hill gets listed it flies off the market. Developers are only bringing top-shelf living quarters to the market these days (i.e. Summerset at Frick Park, Bakery Square 2.0, Highland Building, Lot 24, etc.), leaving those of us with Target---not Saks Fifth Avenue---budgets feeling squeezed.

The problem for those of us with more moderate incomes is that we're relegated to overpaying for rent due to the tight rental market here, which makes it progressively more difficult to save for closing costs and a down payment on homes that are consistently rising in price with each passing year while salaries aren't rising commensurate with this rising cost-of-living. Eventually I may just end up moving to Youngstown, OH to find a livable home at an affordable price point.

[I_Like_Spam]

Originally Posted by JayTwila

While I've only been in Pittsburgh for a few years I have noticed properties in nearly ALL City neighborhoods are up. There are fewer and fewer inhabitable properties under $25,000.00 any more. The days of the under $15,000.00 properties seem to be gone. At least when it comes to Zillow and even Craigs List. Is anyone else noticing the same? Just curious!

I've noticed a general increase in prices in a lot of areas like here in L'ville as well as up in Garfield and other areas in the City.

But these things have a way of turning around, the city may well look to hassle people more on parking, raise wage taxes or do other things to drive people with actual jobs out to the suburbs- reducing the demand and bringing prices down a piece. We'll see what this next mayor does soon enough.

[stburr91]

Originally Posted by SteelCityRising

I've most certainly noticed this myself. I blame investors, "flippers", and career landlords for turning what should be a home into a commodity. All I've wanted is what has been fortunate enough to have happened for PreservationPioneer, who was able to move here, pay roughly $10,000 cash for a tiny yet liveable rowhouse in Stowe Township, and make it cozier and more "homey" over the years. He's recently sold that to someone (hopefully not to an investor or absentee landlord).

The housing prices in Homewood especially shock me. I suppose it can't truly be the worst neighborhood in the city if prices here are higher overall than they are in places like Beltzhoover or Fineview in many cases. Each and every time a small liveable house here on Polish Hill gets listed it flies off the market. Developers are only bringing top-shelf living quarters to the market these days (i.e. Summerset at Frick Park, Bakery Square 2.0, Highland Building, Lot 24, etc.), leaving those of us with Target---not Saks Fifth Avenue---budgets feeling squeezed.

The problem for those of us with more moderate incomes is that we're relegated to overpaying for rent due to the tight rental market here, which makes it progressively more difficult to save for closing costs and a down payment on homes that are consistently rising in price with each passing year while salaries aren't rising commensurate with this rising cost-of-living. Eventually I may just end up moving to Youngstown, OH to find a livable home at an affordable price point.

You have to understand that flippers, and landlords buy cheap properties. Properties aren't cheap unless there is minimal demand. I don't understand why people would have a problem with investors buying properties that other don't want.

An areas doesn't turn around until investors buy, and improve the neighborhood, paving the way for middle class home buyers.

[jea6321]

its all relative. what seems expensive today, will seem like a crazy bargain 10-20 years from now. Its almost always that way and with a market like ours ( slow appreciation, non bubble) it should continue on this path.

now with places like florida and socal, tahoe, where they were seeing 15-25% increases per year for multiple years in a row, there was bound to be a collapse.

I predict that around 2025, people will be on here saying how its almost impossible to find livable houses in the city for under 60-70k and some people will be hailing the glory days of finding 30-40k homes ( like you can find now pretty easy if thats what you want.)

bottom line, 25-40k is still incredibly cheap for a house that can be lived in right away.

[trackstar13]

There are actually some of these properties still available if you look at the city and sheriff's sale listings. There are also many vacant lots for sale that are less than $10,000. Here are a few websites to get you started if you are interested:

Properties for Sale
Post-Gazette.com - Classifieds
Pittsburgh Classifieds - Pittsburgh Pennysaver

I think the issue is what your definition of livable is and many houses have been bulldozed so the availability of cheap lots seems to be increasing. If you are willing to buy a cheap lot and hold it for a while/pay the taxes. You could always save up for a bigger down payment on a construction loan and build in the city when you have the money. I am surprised builders are not building more spec homes on some of these lots.

[HarryRSpooner]

The focus of the initial thread was geared toward properties within the incorporated City of Pittsburgh limits. But yes, I'm even seeing sharp increases in prices County-Wide. From McKees Rocks to McKeesport even! When I say inhabitable homes under $25,000.00, I mean: the utilities are all on, no major structural issues and moderately clean.

One could still collect a few dozen homes for $1.00 a piece plus recording fees if you're willing to take on massive tax liabilities and properties that have been vacant for a long time. I've actually turned down about 3 such deals in recent memory. But I think even those days are numbered. Sheriff sales are a bit risky too. Buying from the City is probably the best venue but you're going to have to put in some serious cash to make almost any City owned property - inhabitable.

Bottom line, if you're retail shopping on Craigs List or Zillow, it is highly unlikely to see houses you can call home under $25,000.00 in the City for much longer. Ditto it seems McKees Rocks too. Although, every now and then a place does come up. But they never last. I do remember a few years ago it was almost a "dime a dozen" and I haven't been here all that long! So, 5 years from now we'll be talking about the days of under $40,000.00 for an inhabitable pad. Gee wiz.

My suspicion is - the best deals are never on the Internet when it comes to the market out here. It's all word of mouth and neighbors talking with neighbors. Boots on the ground so to speak.

[ElijahAstin]

Originally Posted by SteelCityRising

I've most certainly noticed this myself. I blame investors, "flippers", and career landlords for turning what should be a home into a commodity. All I've wanted is what has been fortunate enough to have happened for PreservationPioneer, who was able to move here, pay roughly $10,000 cash for a tiny yet liveable rowhouse in Stowe Township, and make it cozier and more "homey" over the years. He's recently sold that to someone (hopefully not to an investor or absentee landlord).

The housing prices in Homewood especially shock me. I suppose it can't truly be the worst neighborhood in the city if prices here are higher overall than they are in places like Beltzhoover or Fineview in many cases. Each and every time a small liveable house here on Polish Hill gets listed it flies off the market. Developers are only bringing top-shelf living quarters to the market these days (i.e. Summerset at Frick Park, Bakery Square 2.0, Highland Building, Lot 24, etc.), leaving those of us with Target---not Saks Fifth Avenue---budgets feeling squeezed.

The problem for those of us with more moderate incomes is that we're relegated to overpaying for rent due to the tight rental market here, which makes it progressively more difficult to save for closing costs and a down payment on homes that are consistently rising in price with each passing year while salaries aren't rising commensurate with this rising cost-of-living. Eventually I may just end up moving to Youngstown, OH to find a livable home at an affordable price point.

So the problem is that people are making a living buying and selling real estate, which is apparently a new phenomenon?

[gg]

Originally Posted by SteelCityRising

I blame investors, "flippers", and career landlords for turning what should be a home into a commodity.

Are you off your rocker? Really? What drugs are you on? You BLAME? BLAME! Are you kidding me? What the heck do you mean "BLAME"? Sorry there buddy, but no one BLAMES a home investor, flipper or someone that guess what? FIXES UP a home that was in horrible repair and then sells it as a home someone can actually live in. Do you think the neighbors are HAPPY that someone took a pos home and made it nice for someone to live in? BLAME? Wow, you are really twisted in how you think. I wouldn't even know where to begin, but as someone that has bought and sold several homes NO neighbor of mine was unhappy that I bought and sold the homes. They were THANKFUL! WOW, get a life bud!

[HarryRSpooner]

The alternative is for the City of Pittsburgh to simply expand and excelerate its foreclosure/demolition. Condense and consolidate the City. But even then there will still be flippers and house hustlers.