1991 Pittsburgh Real Estate Market KDKA-WTAE

1991 Pittsburgh Real Estate Market KDKA-WTAE


MEANS FOR HOMEOWNERS.. FOR HOMEOWNERS HERE IN PITTSBURGH, IT MEANS YOUR INVESTMENT IS DOING WELL…WE’VE HEARD A LOT THIS PAST YEAR ABOUT SLUGGISH REAL ESTATE MARKETS.. ABOUT HOMEOWNERS ACROSS THE COUNTRY BEING STUCK WITH EXPENSIVE HOMES..ABOUT HOMES NOT BEING THE INVESTMENT THEY ONCE WERE.. AND ALTHOUGH THAT MAY WELL BE TRUE, AT LEAST HERE IN PITTSBURGH, INVESTING IN A HOME LOOKS LIKE IT’S STILL A GOOD DEAL…LET’S SEE HOW YOUR DEAL STACKS UP.. U.S.NEWS AND WORLD REPORT SAYS OUR FORMER SMOKESTACK CITY HAS RECUPERATED NICELY FROM ITS STEEL INDUSTRY BLUES..WITH MORE JOBS ON THE HORIZON AND INCREASING VALUE IN OUR HOMES..HERE IN PITTSBURGH LAST YEAR, THE AVERAGE HOME SOLD FOR SEVENTY ONE THOUSAND TWO HUNDRED EIGHTY FOUR DOLLARS.. THAT SAME HOME THIS YEAR HAS A SEVENTY FIVE THOUSAND FIVE HUNDRED FORTY ONE DOLLAR VALUE.. THAT’S AN INCREASE OF SIX PERCENT..STILL UNDER THE ESTIMATED MEDIAN HOME PRICE IN THE COUNTRY OF EIGHTY TWO THOUSAND TWO HUNDRED EIGHTY SEVEN DOLLARS.. ‘THEY ARE COMPARING APPLES TO APPLES AND WHAT THEY ARE SAYING THAT PITTSBURGH COMPARED TO OTHER CITIES OVER THE NEXT YEAR WILL HAVE A HEALTHY APPRECIATION IN HOUSING.’ NEWS THAT COMES AS NO SURPRISE TO THIS HOMEOWNER WHO SAYS HER HOME IS ALREADY PAYING OFF AFTER ONLY TWO YEARS. ‘WE BOUGHT IT TWO YEARS AGO AND ALREADY WE CAN ASK A LOT MORE FOR IT THAN WE PAID FOR IT.’ THE MAGAZINE ALSO GIVES US A PICTURE OF THE THE AVERAGE PITTSBURGH HOMEOWNER.. A HOUSHOLD INCOME OF CLOSE TO FIFTY THOUSAND DOLLARS.. HAS A THIRTY YEAR FIXED RATE MORTGAGE AT NINE PERCENT WITH A MONTHLY MORTGAGE PAYMENT.OF FOUR HUNDRED EIGHTY SIX DOLLARS A MONTH. THAT GIVES PITTSBURGH AN AFFORDABLILIT RATE OF TWELVE PERCENT.. ‘ WHAT THEY ARE SAYING IS TWELVE PERCENT OF YOUR MONTHLY GROSS INCOME GOES TO MORTGAGE.. NOT INCLUDING TAXES AND INSURANCE.. THAT’S AFFORDABLE..’ AN AFFORDABILITY FACTOR.. OR HOW BIG A BITE OF YOUR INCOME.. THAT RANKS US SIXTEENTH IN THE COUNTRY.. BEHIND OKLAHOMA CITY.. WITH AN EIGHT PERCENT AFFORDABILITY FACTOR..BUT FAR BETTER THAN HONOLULU THE WHERE FORTY SEVEN PERCENT OF YOUR GROSS MONTHLY INCOME GOES FOR YOUR HOME. ‘.MATURE, STABLE .. I THINK FIVE YEARS FROM NOW, WE MAY NOT BE SO HIGH ON THE LIST..IF OUR PRICES KEEP GOING UP.. OUR AFFORDABLILITY WILL GO DOWN..’ PAGE=26 WE ARE MOVING UP ON THAT LIST BY THE WAY..LAST YEAR, SULEY SAYS WE WERE RATED NUMBER ELEVEN..THIS YEAR UP TO EIGHT.. AND LAST YEAR MONEY MAGAZINE RATED PITTSBURGH THE SECOND HOTTEST MARKET..PREDICTING AS MUCH AS A FIFTY INCREASE IN HOME VALUES OVER THE NEXT FIVE YEARS.. SO EVEN IF THEY ARE ONLY HALF RIGHT.. IT CERTAINLY LOOKS GOOD FOR PITTSBURGH.. WHY PHILEDELPHIA SO HIGH? THEY HAVE BEEN SO DEPRES IF YOU WANT TO REFINANCE YOUR HOME.. OR BUY A NEW HOME, FIRST, YOU HAVE TO HAVE PROOF YOUR HOME IS FREE FROM TERMITES AND CARPENTER ANTS. PEST INSPECTION IS REQUIRED BY MOST LENDERS TODAY.. BUT AS CONSUMER EDITOR YVONNE ZANOS TELLS US.. THAT PEST INSPECTION DOESN’T NECESSARILY PROTECT THE BUYER… THAT PEST INSPECTION COULD DO MORE HARM THAN GOOD.. IF THAT PIECE OF PAPER SAYING YOUR HOME IS PEST FREE LULLS YOU INTO A FALSE SENSE OF SECURITY..JUST BECAUSE YOUR HOME DOESN’T HAVE TERMITES TODAY..DOESN’T MEAN THEY WON’T BE THERE TOMORROW.. AND DOESN’T TELL YOU WHAT DAMAGE THEMAY HAVE DONE TO Y■UR HOME YESTERDAY. WHEN JOHN AND MICHELE MCNALLY BOUGHT THEIR NEW HOME, THEY KNEW THEY