Will you become a victim of Pittsburgh's housing boom? (Washington: houses, unemployment benefits)

[Goodjules]

Originally Posted by eccotecc

selltheburgh,

Hmmmmm !! What would eliminate first time buyers? It depends on the individual buyers. It depends on how much they have to put down. It depends of course on how much they qualify for.

If I had to guess, taking into account average prevailing wage for young workers, servicing PITI and renovation expenses, I would guess a first time buyer should spend around $100,000 give or take. If prices were to go much above that then I would suggest they reconsider their purchase. Of course each individual situation is going to be different.

What do you think....Am I close??

It all depends on the market, interest rates, and credit availability. I remember a time not too long ago here in CA when tiny houses in bad shape were selling for well over $500k. If people feel that the market is going up, they'll spend what they think is reasonable to buy in. I don't think Pittsburgh is anywhere near that kind of craziness. That said, there's definitely a crowd mentality when it comes to how hot or cold a market is. Perception is everything.

[eccotecc]

juliegt,

Pittsburgh has seen a 13% increase in house prices year to year. If you were to consider the national home prices have experienced a negative increase in value by as much as 20%, then Pittsburgh's price increase is closer to 30% in relation to the rest of the country. I guess one could argue that Pittsburgh is just playing catch up to the rest of the nation since they didn't see the double digit appreciation that other regions of the country saw.

However a person looks at it Pittsburgh's home prices are on a substantial rise.

[Goodjules]

Originally Posted by eccotecc

juliegt,

Pittsburgh has seen a 13% increase in house prices year to year. If you were to consider the national home prices have experienced a negative increase in value by as much as 20%, then Pittsburgh's price increase is closer to 30% in relation to the rest of the country. I guess one could argue that Pittsburgh is just playing catch up to the rest of the nation since they didn't see the double digit appreciation that other regions of the country saw.

However a person looks at it Pittsburgh's home prices are on a substantial rise.

Wish I had bought there in 2006 when my house in CA was worth $650,000! Value plummeted since then.

[BrianTH]

Bit of an aside, but the latest PEQ has a couple interesting articles related to things we have discussed here:

http://www.ucsur.pitt.edu/files/peq/peq_2012-06.pdf

One analyzes exactly who is migrating here for work. An interesting chart of which industries rely the most on migrants



The other article I found relevant looked at the effects of the Summerset at Frick Park development, and found it had a big influence on nearby property values. I think that supports the thesis that investment in one neighborhood is likely to cause appreciation in immediately adjacent areas.

[eccotecc]

Brian,

Good Job!!

The data you present supports the fact Pittsburgh has a highly diversified economy.

[BrianTH]

Originally Posted by eccotecc

The data you present supports the fact Pittsburgh has a highly diversified economy.

It really does--the jobs growth in particular is coming from lots of different sectors.

That is good news for sustainability of jobs growth, but also reason to think the possibility of sustained home price increases, at least in certain sorts of submarkets, is substantial.

[eccotecc]

Brian,

You always seem to say it so much better than I can. You truly have an eloquent way with words.

[gg]

Here is a list of top employers in Pittsburgh. The list is from 2010 and it might be a little different than today. Anyone have an updated version please post. Seems tax free or super low tax companies are the big guns. No surprise there.

http://www.bizjournals.com/pittsburg...4/daily45.html

[BrianTH]

Originally Posted by eccotecc

You always seem to say it so much better than I can. You truly have an eloquent way with words.

Thank you for the compliment, but don't sell yourself short!

[Goodjules]

Originally Posted by eccotecc

Brian,

You always seem to say it so much better than I can. You truly have an eloquent way with words.

I agree. Brian always says what's on my mind better than I can. And he always has stats to back it up. Go Brian!