CNN: "Cities Where Housing Prices are Hitting New Highs": Pittsburgh is Near the Top (Crafton: rentals, big home)

[J_Church]

Originally Posted by charisb

Yes. And the increase in prices was inevitable.
When we moved here we knew we would be here for at least 6 six years, but possibly longer. The rental market here isn't great, so we decided we were going to spend a year saving to buy a house. For a solid year we budgeted every penny, didn't eat out, didn't buy coffees, no cable. We socialized with friends at home or at their place. We didn't exchange holiday/birthday gifts. Even with relatively low salaries (<$60,000) and student loans we were able to put together a down payment (not 20% but enough) and we bought a house in the low $100,000s on the Greenfield/Sq Hill border. The house was in great shape but needed cosmetic updates. So it can be done if you are really committed to homeownership. We have spent the past 3 years paying toward a mortgage, live in a nice community, and I can have a garden. if someone really wants to buy a house here they need to move because the prices aren't going to go down. But then again, the sacrifices often entailed in homeownership aren't for everyone.

Thanks for this-- it's inspiring. This is what my wife and I hope to do as well.

[_Buster]

Originally Posted by Bong477

The is more evidence that Pittsburgh metro homes didn't take a dive with the real estate bust than evidence of rapidly rising home prices. If you believe the figures as accurate, home prices have risen 10% in 7 years, not all that impressive really.

True, that is actually well below the rate of inflation. So in reality the fixed dollar value has gone down. but, these are based on Zillow, so take that into consideration.

[Goodjules]

Originally Posted by Caladium

I thought your claim was that the rising prices constituted "a crisis".

Nobody is disputing that Pittsburgh's housing prices are rising faster rate than most places in the country. Which is different from rising a larger amount that other cities, but that's a topic for another thread. A fast rate is what happens when you have a city where, until recently, houses could be bought at 1970s prices. A house that was $20K 5 years ago is now $80K. That indicates a fast rate of recent growth. It indicates new residents are moving into a city. It probably indicates economic recovery. It also probably indicates that long vacant properties will now start being fixed up and put on sale. What it does not indicate is "a crisis."

I don't see people disputing your observations, they dispute your conclusions.

Couldn't have said it better myself. I do think Pittsburgh should guard against it becoming a crisis by encouraging job growth, employers offering competitive salaries, more blue collar jobs, etc. For now I think it is a strong recovery, a trend that has been going on for a while in this area. My definition of a crisis is where someone with a median income cannot afford to buy or rent within a 25 mile radius of the city. And it's not a whole lot better within a 50 mile radius. If you can't afford the neighborhood you want and there are many lower priced, safe alternatives, that's being stubborn, not a crisis. Either figure out a way to increase your income or compromise on the neighborhood.

[AaronPGH]

Originally Posted by Goodjules

Couldn't have said it better myself. I do think Pittsburgh should guard against it becoming a crisis by encouraging job growth, employers offering competitive salaries, more blue collar jobs, etc. For now I think it is a strong recovery, a trend that has been going on for a while in this area. My definition of a crisis is where someone with a median income cannot afford to buy or rent within a 25 mile radius of the city. And it's not a whole lot better within a 50 mile radius. If you can't afford the neighborhood you want and there are many lower priced, safe alternatives, that's being stubborn, not a crisis. Either figure out a way to increase your income or compromise on the neighborhood.

This. We are so far away from the word "crisis" it's ridiculous.

[Caladium]

Originally Posted by Goodjules

Couldn't have said it better myself. I do think Pittsburgh should guard against it becoming a crisis by encouraging job growth, employers offering competitive salaries, more blue collar jobs, etc. For now I think it is a strong recovery, a trend that has been going on for a while in this area. My definition of a crisis is where someone with a median income cannot afford to buy or rent within a 25 mile radius of the city. And it's not a whole lot better within a 50 mile radius. If you can't afford the neighborhood you want and there are many lower priced, safe alternatives, that's being stubborn, not a crisis. Either figure out a way to increase your income or compromise on the neighborhood.

Thanks, glad I made sense. I wrote that at 4 a.m. which is not when I do my best writing. If it sounded a little groggy, that's why.

[Caladium]

Originally Posted by dbsteel

It seems to me this is a function of them starting so cheap to begin with.

Yup.

[gg]

Originally Posted by AaronPGH

This. We are so far away from the word "crisis" it's ridiculous.

No kidding. I was just on Zillow and took a look at the map with all the homes for sale. There are so many homes for sale, it would take forever to get through them all. I also wasn't that impressed with the values. Still very cheap around here. Heck you can even buy a home in Aspinwall for $150K. Pittsburgh might be on the rise, but it is still dirt cheap.

[Buckeye Burgher]

They've been depressed since the 1970's. Like taking the pressure off of a compressed spring.

[Katarina Witt]

Originally Posted by Bong477

The is more evidence that Pittsburgh metro homes didn't take a dive with the real estate bust than evidence of rapidly rising home prices. If you believe the figures as accurate, home prices have risen 10% in 7 years, not all that impressive really.

I think prices didn't drop then b/c they were already so low to begin with.

[UKyank]

Since house prices rose at a lower rate then inflation does that make then technically 'cheaper' now then in 2004?