The Pittsburgh housing market is seeing some interesting changes in early 2025. The number of homes for sale is going up, but the rush to buy is slowing down. This shift has got buyers, sellers, and investors wondering what it means for them. Let’s dive into what’s happening and see how it affects different folks in Pittsburgh.

In early 2025, Pittsburgh’s housing market is seeing more homes for sale than it has in the past. The total inventory went up by 1.1% to 5,646 homes. However, the rush to buy seems to be cooling down. Sales prices have decreased by 1.3% compared to last year, resulting in a median sales price of $225,000.

Although there are more homes on the market, they are not selling as quickly as they did in the past. The number of homes sold went down by 3.8%, totaling 1,257 units. At the same time, new listings fell by 8.4% to 1,547. It seems like sellers might be holding back.

- First-time homebuyers might find more options now, but they still need to be careful with budgets because prices are down slightly, but list prices are up.

- Upsizers and downsizers could have a bit more time and choice with the increased inventory.

- Investors need to be picky, as not all homes might turn out to be a good deal.

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Even though there are more homes for sale, the pace is slowing. The months of supply increased by 20% to 4.5 months, indicating a more balanced market. This gives buyers more power, but they still need to act wisely.

The days a home sits on the market increased by 6%, now averaging 74 days, indicating a slowdown in sales speed. Less urgency might make buyers feel more comfortable taking their time, but it also means sellers need to adjust their strategies accordingly.

Buyers need to weigh whether it’s worth jumping in now or waiting longer, as list prices continue to climb due to seller expectations.

Sellers might need to reconsider pricing and timing, as only 19.4% of homes are sold above the list price, representing a slight increase of 1.4%.

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Let’s break down this data to help everyone navigate the market better.

### 1. First-Time Homebuyers: Keep an Eye on Budget

With the median price per square foot up by 7.8% to $158.98, first-time buyers should:

Look for homes within your budget and be prepared for minor price adjustments.

- Be aware that the median list price per square foot is $170.75, showing a gap between what sellers want and what buyers are willing to pay.

### 2. Upsizers and Downsizers: Use the Time Wisely

More inventory means more choices for those looking to move up or down:

- Take advantage of the slower pace to find the perfect fit.

- Plan and budget according to updated list prices.

### 3. Investors: Look for the Right Deals

Investors should focus on the right opportunities:

- Watch the areas with price drops, which are up by 0.9% to 21.1%.

Consider the long-term potential of up-and-coming neighborhoods, such as East Liberty and the Strip District.

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Several factors are influencing the market right now:

- Mortgage Rates: While there was optimism about lower rates, they rose again due to market reactions and inflation. It means buyers have to prepare for higher monthly payments.

- Economic Factors: The economy plays a big part. Changes in supply seem to be more significant than changes in demand in influencing Pittsburgh’s prospects.

- Market Dynamics: The spread added by lenders depends on inflation, making rates somewhat challenging to predict at present.

Everyone, from first-time buyers to seasoned investors, should stay informed about how economic trends and policies may impact their decisions. They should be ready to adapt and make informed decisions.

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The Pittsburgh market is expected to remain a strong seller’s market, even with increased inventory. Here’s what different groups should keep in mind:

- Buyers: Lock mortgage rates soon if you plan to buy. Consider down payment assistance programs if needed.

- Sellers: Use your competitive edge wisely, but be prepared to adjust prices in response to the shifting market balance.

- Investors: Focus on neighborhoods showing promise for future growth and potential returns.

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Pittsburgh’s real estate market in 2025 is changing, but with careful planning and awareness, both buyers and sellers can achieve their goals. Whether you’re buying your first home, upsizing, downsizing, or investing, understanding the current market dynamics is key. Keep an eye on trends, stay informed, and make decisions that align with your financial and lifestyle objectives. By doing so, you’re more likely to find success in Pittsburgh’s evolving market.

With these insights, you’re better prepared to navigate the Pittsburgh housing landscape in 2025. Good luck on your journey to finding or selling your home!