New Year Means New Home Listings on the Rise in Southwestern PA

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Feb 18, 2015, 08:30 ET

PITTSBURGH, Feb. 18, 2015 /PRNewswire/ -- According to the January 2015 residential real estate report from the West Penn Multi-List, Inc., new home listings and sale price are on the rise, but contracts have decreased slightly.

"In January 2014, the residential inventory was low and we were struggling to meet the demand of homebuyers, but that's not the case anymore," said Tom Hosack, current president of the West Penn Multi-List, Inc., and president and CEO of Northwood Realty Services in Pittsburgh. "We have the homes, but contracts have dipped, so buyers may be taking more time to weigh their options before jumping into a contract."

A comparison of January 2014 and January 2015 data shows:

New listings increased 4.34 percent (2,210 homes in January 2014 versus 2,306 in January 2015);
Residential homes placed under agreement decreased 3.19 percent (2,664 homes in January 2014 versus 2,579 in January 2015);
Average number of days on the market decreased 1.11 percent (90 days in January 2014 versus 89 days in January 2015); and
Average home sale price increased 3.69 percent ($163,360 in January 2014 versus $169,383 in January 2015).

"Steady growth is healthy, and it's promising to see the average home sale price is still increasing," said Hosack. "However, when looking at the number of homes sold by price in our area, most are between $120,000 and $140,000 (lower than the average price), which is a trend that's been consistent for the past year. That shows there are plenty of affordable homes available for first-time homebuyers."

In fact, according to a report by the Pennsylvania Association of Realtors in conjunction with the West Penn Multi-List, Inc., the housing affordability index indicates the median household income is 227% of what is necessary to qualify for the median-priced home under prevailing interest rates. "This is by all indications a sign that affordable housing is available in the Southwest region of Pennsylvania," said Hosack.

The numbers in this report represent the 13-county area serviced by the West Penn Multi-List, Inc., the definitive source for real estate information for its service area – Allegheny, Armstrong, Beaver, Butler, Washington, Westmoreland, Fayette, Greene, Clarion, Lawrence, Mercer, Somerset and Indiana Counties. For more information, visit http://www.westpennmls.com/.