Local real estate agent optimistic about 2023 housing market For the last couple of years, you could describe the housing market the same way Forrest Gump described a box of chocolates: "You never know what you're going to get." Whether it's because of headlines, social media or just casual conversation, many consumers have become confused, misinformed and even scared about what's happening to the value of their home, so I wanted to share some factual and positive information regarding real estate in the region. First, did you know which U.S. city has the most affordable housing market in the world? It's Pittsburgh! (Yes, in the world!) Pittsburgh was named the most affordable city in the world by the Urban Reform Institute and Frontier Centre for Public Policy for 2022. The study compared home prices to household incomes in 92 cities (and 8 different countries), and Pittsburgh was the most affordable. Here are some other interesting facts about real estate in our area. As of October 2022, the median listing price for a Pittsburgh home was $230,000, which has stayed consistent year over year, according to Realtor.com. The median sales price for a Pittsburgh home was $229,439, a 2% increase from 2021, according to rockethomes. com. This compares favorably to the national median sales price of $ 379,100 for October 2022 and is a 6.6% gain from October 2021. In Washington County, the median sales price was $251,000, up 14.09% from October 2021, when it was $220,000. The average sales price for October 2022 was $323,955 and was 23.20% higher than the $262.958 average from October 2021. The sales price to list price ratio is another important metric. It refers to the percentage of the listing price you can expect to net on the sale of your home. In October 2022, the average was 97%. This means that if you list a home for $ 100,000, you can expect a sales price of $ 97,000. That's pretty good-just think about how you would feel if you earned a 97 % on a school exam. What about the days your home will spend on the market before you can expect a sales agreement? For October 2022, that was 38 days, so just a little over one month. How does that compare to 2020 and 2021? The average days on the market in Washington County for October 2020 was 48, in October 2021, it was 34 days on the market. So, this year fell in the middle. Another great indicator of property values is the average sales price per square foot. This value increased in Washington County from $134 in October 2021 to $148 in October 2022. That's great news if you are a seller. The number of new listings in Washington County was stable when comparing October 2022 (243 new listings) to October 2021 (241 new listings). The month's supply of inventory for October 2022 was 3.34 months. Generally, in a balanced seller/ buyer market, this will lie between 4-6 months, according to showingtime.com. From a historical perspective, this is not a repeat of the housing crash that took place in 2008. During that time, there were many short sales and foreclosures, and there were different types of "risky" loan programs that no longer exist. Because of those conditions, home prices fell dramatically. Today, supply has increased, but there is not enough inventory for prices to come crashing down. So, what about mortgages and interest rates? One of my favorite sayings is, "You marry the house and date the rate." Why? Your home is where you will live 365 days a year and celebrate life, but interest rates and programs constantly change. There are many alternatives and ways to navigate today's real estate market. I have asked George Hackett from Guaranteed Rate Affinity to shed some light on mortgages for first-time home buyers and repeat home buyers: "Mortgage rates are currently hovering around 6% at the end of 2022." Hackett said. "That's down 20% from the high of 7.5% in the early fall of 2022. This is a very good indication that rates will fall to the upper 5% in 2023. These rates are very similar to the rates we had in 2009, which was the second-best real estate market in Pittsburgh history. At that time, rates were about 5.125%. "For first-time home buyers, there are some great loan programs, such as FHA and PHFA," Hackett continued. "FHA stands for Federal Housing Administration loan, which means the government insures the loan. PHFA stands for Pennsylvania Housing Finance Agency, a state agency that benefits Pennsylvania residents. In these programs, buyers can purchase a home with as little as 3.5% down." What does this mean? If you purchase a home for $100,000, as a first-time home buyer, you may only need $3500 in cash to close." Here's additional mortgage information from Hackett: "Adjustable Rate Mortgages (commonly called an ARM) may become more popular in 2023 as rates' level out," he explained. "In an ARM, the buyer will be able to lock in a very low rate for the first several years of the loan. When the loan's introductory period expires, the rate will either adjust to the market rate, or the buyer may refinance into another ARM or loan program. TOP FIVE REASONS TO LIST YOUR Bonnie will get your home in front of the most potential buyers: professional brochures, professional photos, just-listed mailers, Google listings, and social media boost, digital billboards with nearly 900,000 traffic counts per month. 2 is so It "I am so glad that I contacted Bonnie when I decided to list the was really a smooth sale." - Marilyn, Canonsburg Nothing less than Bonnie is a 3 cares for her clients and goes beyond everyday business to give back to her community, family and friends. Animal Friends and Make A Wish are just two of the many charities Bonnie donates her time to, helping them raise money. REALTOR* Bonnie Loya with her home buying buddy, Jett. "Today, it actually makes more sense for people to take advantage of jumbo loans (in excess of $647,200). At 5.625%, the interest rate for Jumbo loans is currently lower than the rate for conventional which is in the 6% range. So if you finance $647,201 at 5.625% vs. $647,200 at 6.5%, you will save $365.09 in your monthly payment or about $4,381 per year. "Seller-paid closing costs may be an incentive for buyers as we approach the spring market and there is more inventory. If inventory increases, there will be more competition on the market, and sellers may offer seller's assistance to motivate buyers to purchase their homes. "As inflation improves, the mortgage market will follow! Better times are ahead." From my perspective, whether you are looking to sell or buy a home in 2023, the forecast is favorable. Make sure you contact a real estate professional and mortgage advisor who can give you the facts about current market conditions to be an informed and confident consumer. This article is brought to you by Bonnie Loya, Associate Broker COLDWELL BANKER REALTY For more information, contact Bonnie Loya, Associate Broker Direct: 412-915-0038, Office: 724-942-1200 Bonnie Loyo@pittsburghmoves.com 3244 Washington Road, McMurray, PA 15317-6403 HOUSE WITH BONNIE LOYA IN 2023 "We have heard of real estate agents who think that open houses are a waste of time, so we were thrilled that Bonnie wanted to have an open house one week after putting our house on the market. And we accepted an offer on the day after the open house." -Terry and Ken, Venetia Bonnie is the #1 agent in the #1 office by volume in Washington County! COLDWELL BANKER REALTY Bonnie Loya, Associate Broker Direct: 412-915-0038 Office: 724-942-1200 Bonnie.Loya@pittsburghmoves.com 3244 Washington Road, McMurray, PA 15517-6403 Local real estate agent optimistic about 2023 housing market For the last couple of years , you could describe the housing market the same way Forrest Gump described a box of chocolates : " You never know what you're going to get . " Whether it's because of headlines , social media or just casual conversation , many consumers have become confused , misinformed and even scared about what's happening to the value of their home , so I wanted to share some factual and positive information regarding real estate in the region . First , did you know which U.S. city has the most affordable housing market in the world ? It's Pittsburgh ! ( Yes , in the world ! ) Pittsburgh was named the most affordable city in the world by the Urban Reform Institute and Frontier Centre for Public Policy for 2022. The study compared home prices to household incomes in 92 cities ( and 8 different countries ) , and Pittsburgh was the most affordable . Here are some other interesting facts about real estate in our area . As of October 2022 , the median listing price for a Pittsburgh home was $ 230,000 , which has stayed consistent year over year , according to Realtor.com . The median sales price for a Pittsburgh home was $ 229,439 , a 2 % increase from 2021 , according to rockethomes . com . This compares favorably to the national median sales price of $ 379,100 for October 2022 and is a 6.6 % gain from October 2021 . In Washington County , the median sales price was $ 251,000 , up 14.09 % from October 2021 , when it was $ 220,000 . The average sales price for October 2022 was $ 323,955 and was 23.20 % higher than the $ 262.958 average from October 2021 . The sales price to list price ratio is another important metric . It refers to the percentage of the listing price you can expect to net on the sale of your home . In October 2022 , the average was 97 % . This means that if you list a home for $ 100,000 , you can expect a sales price of $ 97,000 . That's pretty good - just think about how you would feel if you earned a 97 % on a school exam . What about the days your home will spend on the market before you can expect a sales agreement ? For October 2022 , that was 38 days , so just a little over one month . How does that compare to 2020 and 2021 ? The average days on the market in Washington County for October 2020 was 48 , in October 2021 , it was 34 days on the market . So , this year fell in the middle . Another great indicator of property values is the average sales price per square foot . This value increased in Washington County from $ 134 in October 2021 to $ 148 in October 2022. That's great news if you are a seller . The number of new listings in Washington County was stable when comparing October 2022 ( 243 new listings ) to October 2021 ( 241 new listings ) . The month's supply of inventory for October 2022 was 3.34 months . Generally , in a balanced seller / buyer market , this will lie between 4-6 months , according to showingtime.com . From a historical perspective , this is not a repeat of the housing crash that took place in 2008 . During that time , there were many short sales and foreclosures , and there were different types of " risky " loan programs that no longer exist . Because of those conditions , home prices fell dramatically . Today , supply has increased , but there is not enough inventory for prices to come crashing down . So , what about mortgages and interest rates ? One of my favorite sayings is , " You marry the house and date the rate . " Why ? Your home is where you will live 365 days a year and celebrate life , but interest rates and programs constantly change . There are many alternatives and ways to navigate today's real estate market . I have asked George Hackett from Guaranteed Rate Affinity to shed some light on mortgages for first - time home buyers and repeat home buyers : " Mortgage rates are currently hovering around 6 % at the end of 2022. " Hackett said . " That's down 20 % from the high of 7.5 % in the early fall of 2022 . This is a very good indication that rates will fall to the upper 5 % in 2023. These rates are very similar to the rates we had in 2009 , which was the second - best real estate market in Pittsburgh history . At that time , rates were about 5.125 % . " For first - time home buyers , there are some great loan programs , such as FHA and PHFA , " Hackett continued . " FHA stands for Federal Housing Administration loan , which means the government insures the loan . PHFA stands for Pennsylvania Housing Finance Agency , a state agency that benefits Pennsylvania residents . In these programs , buyers can purchase a home with as little as 3.5 % down . " What does this mean ? If you purchase a home for $ 100,000 , as a first - time home buyer , you may only need $ 3500 in cash to close . " Here's additional mortgage information from Hackett : " Adjustable Rate Mortgages ( commonly called an ARM ) may become more popular in 2023 as rates ' level out , " he explained . " In an ARM , the buyer will be able to lock in a very low rate for the first several years of the loan . When the loan's introductory period expires , the rate will either adjust to the market rate , or the buyer may refinance into another ARM or loan program . TOP FIVE REASONS TO LIST YOUR Bonnie will get your home in front of the most potential buyers : professional brochures , professional photos , just - listed mailers , Google listings , and social media boost , digital billboards with nearly 900,000 traffic counts per month . 2 is so It " I am so glad that I contacted Bonnie when I decided to list the was really a smooth sale . " - Marilyn , Canonsburg Nothing less than Bonnie is a 3 cares for her clients and goes beyond everyday business to give back to her community , family and friends . Animal Friends and Make A Wish are just two of the many charities Bonnie donates her time to , helping them raise money . REALTOR * Bonnie Loya with her home buying buddy , Jett . " Today , it actually makes more sense for people to take advantage of jumbo loans ( in excess of $ 647,200 ) . At 5.625 % , the interest rate for Jumbo loans is currently lower than the rate for conventional which is in the 6 % range . So if you finance $ 647,201 at 5.625 % vs. $ 647,200 at 6.5 % , you will save $ 365.09 in your monthly payment or about $ 4,381 per year . " Seller - paid closing costs may be an incentive for buyers as we approach the spring market and there is more inventory . If inventory increases , there will be more competition on the market , and sellers may offer seller's assistance to motivate buyers to purchase their homes . " As inflation improves , the mortgage market will follow ! Better times are ahead . " From my perspective , whether you are looking to sell or buy a home in 2023 , the forecast is favorable . Make sure you contact a real estate professional and mortgage advisor who can give you the facts about current market conditions to be an informed and confident consumer . This article is brought to you by Bonnie Loya , Associate Broker COLDWELL BANKER REALTY For more information , contact Bonnie Loya , Associate Broker Direct : 412-915-0038 , Office : 724-942-1200 Bonnie Loyo@pittsburghmoves.com 3244 Washington Road , McMurray , PA 15317-6403 HOUSE WITH BONNIE LOYA IN 2023 " We have heard of real estate agents who think that open houses are a waste of time , so we were thrilled that Bonnie wanted to have an open house one week after putting our house on the market . And we accepted an offer on the day after the open house . " -Terry and Ken , Venetia Bonnie is the # 1 agent in the # 1 office by volume in Washington County ! COLDWELL BANKER REALTY Bonnie Loya , Associate Broker Direct : 412-915-0038 Office : 724-942-1200 Bonnie.Loya@pittsburghmoves.com 3244 Washington Road , McMurray , PA 15517-6403