We have all heard the constant drum-beat of negativity coming from the national media. If you were to listen to what seems to be a daily stream of bad news, you would think our area and the nation as whole stands at the precipice of financial ruin. Is the sky really falling in real estate? Granted the Pittsburgh real estate market has seen better times. It’s time the public heard a “balanced” viewpoint.

Facts You will not Hear from the National News Media

• Fact #1 Predicting the national real estate market is about as accurate as predicting the national weather forecast. It’s time the national media realized real estate is local and it is market driven depending on local dynamics including job growth and the local economy. Plus, every real estate market is different and unique. In fact, local real estate markets can produce both “hyper-local” buyer’s markets and seller’s markets all in the same city.
• Fact #2 Foreclosures have peaked in most markets. If one were to review the data, most foreclosures occurred in heavy investor markets like Nevada, Florida, California and Arizona where greed was the driving force. In real estate markets like North and South Carolina, Utah and New Mexico foreclosures are actually on the decline.
• Fact #3 On a national perspective, 2007 was the fifth best year ever on record. Home prices did decline in 2007 by about 1.5 percent after a 50 percent run up in prices.
• Fact #4 Housing starts have fallen to more rational levels. Remember, we have been experiencing an extraordinary period over the last few years with new home construction breaking all previous records.
• Fact #5 Gen Ys (born 1977 to 1994) are now entering the Pittsburgh real estate market for the first time. Falling interest rates will motivate many of these buyers to step into the market to buy their first home, townhome or condo. On the flip side, as “Boomer” nation approaches their retirement years expect Americas’ largest population segment (with the greatest buying power) to purchase second homes and vacation homes causing a boost in the nation’s real estate market. Expect Boomers to help lagging resort destination markets to rebound in sales of vacation homes.
• Fact #6 Corporate America is experiencing unprecedented profits which will drive job creation. Granted manufacturing jobs will continue to move off shore. Knowledge based jobs will grow in the near future. Expect to see a swell of products and services geared for “Boomers” which will also drive job creation.
• Fact #7 A weaker US dollar will usher in more international home buyers to larger metropolitan markets. Expect Canadians and Europeans to enter the US real estate market in unprecedented numbers.

The Bottom Line for the 2008 Real Estate Market

The 2008 real estate market represents the best window that buyers will have when you combine the excellent deals with superior financing. Mortgage rates continue to be at historic lows and the existing home inventory will offer buyers many home buying choices. Speaking of the local listing inventory, Pittsburgh home sellers must be rational in their home values. Plus homes for sale in Pittsburgh need to be in “move-in” condition when competing for qualified buyers. As a Pittsburgh home buyer, if you wait for a “better time to buy” home values and interest rates will be higher and the reluctant buyer may be forced out of the market.

What Impact Has The National Media’s Message Had On Your Pittsburgh Home Buying Decisions?

Submit a comment. I would love to know what impact the constant drum-beat of negativity has played on your home buying decisions.

Until my next post,

Jim Dolanch
Your Pittsburgh Real Estate Resource