Regional Spotlight: Housing Prices Down with Pittsburgh Population

RISMEDIA, Oct. 2, 2007-(MCT)-Lack of population growth in Pittsburgh apparently has its advantages — as far as some aspects of the region’s real estate market is concerned.

It has reduced the volatility of area home prices, according to a report from PNC Financial Services Group Inc.

“Through the housing boom years of 2004 and 2006, Pittsburgh-area house prices rose by 4 to 6 percent each year, well below double-digit gains of more speculative markets,” the report said.

“In late 2006 and into 2007, house price appreciation slowed in Pittsburgh, but even more so across the nation.”

Stuart Hoffman, PNC’s chief economist, presented an economic forecast to members of the Realtors Association of Metropolitan Pittsburgh earlier this month.

The report shows house price appreciation in the seven-county Pittsburgh area was actually exceeding the national average by this year’s second quarter.

“While housing markets in some Northeast metro areas are clearly in comparative freefall, Pittsburgh has so far been a comparative bastion of stability,” it continues.
Single-family housing starts were down about 5% in the region for the first half of the year, but the area’s performance compares favorably to a number of other markets shown.

For example, starts are down close to 10% in Philadelphia, more than 10% in Washington, more than 25% in Cleveland and more than 50% in Detroit. Nonetheless, the PNC forecast projects a 19.2% drop in overall housing permits this year, and a decline of 8.7% in 2008.

It expects single-family permits will be down 11% by year’s end, and another 9.7% next year.

Looking at sales of existing homes, the forecast shows a 9.5% decline this year but a 2.8% gain in 2008.

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