For the past few weeks, I’ve been seeing an unusual number of houses for sale that are owned by the listing agents. This raises an interesting question: why are so many Pittsburgh Realtors selling their homes?
Here’s Why So Many Agents Are Selling Now
The market conditions are pretty great for home sellers right now. Extremely low interest rates, lots of buyers active in the market, and very little inventory make for a strong seller’s market. We are seeing houses fly off the market with multiple buyers interested in a single property, and some offers far exceed the list price.
This is not a 2020 phenomena in Pittsburgh—we’ve been experiencing a seller’s market for several years. Michael and I sold our personal home in 2018 because we thought it was a great time to sell. But I have to say, I’ve never seen so many Realtors personally selling their homes as I have in the past 45 days.
There are plenty of benefits to buying AND selling now
Of course, as soon as I publicly made the observation, a savvy consumer said something along the lines of “Hey, that’s great…but if they’re selling for top dollar, they still have to buy something and the seller’s market will force them to buy at top dollar. So what’s the big deal?”
And here, my friends, is the big deal. If you are selling a home priced at $200,000 and buying a home priced at $250,000, it will be a seller’s market on both ends—your purchase and your sale. Most people are okay with that because it seems like a pretty neutral scenario. You’ll pay more for your new home, but you’ll get more cash for your current home. Chances are, you need extra space, a different floor plan, or a different amount of yard space, so there will be personal benefits to making the move.
If you are a careful shopper and have the help of a good Realtor, you could also reap additional benefits. Thanks to lower interest rates and strong appreciation rates, your new home may very well cost you less while allowing you to build equity faster.
On the other hand, if you are selling a home priced at $350,000 and buying a home priced at $400,000, the scenario could be very different. There are lots of buyers currently looking for homes priced under $300K. However, there are fewer buyers for homes priced above $400K. In fact, according to our June 2020 Market Update, 78% of all home sales were under $300,000!
If you are a move-up buyer, you could get top dollar for your home and still enjoy a vast selection of lovely homes, plus a wide range of new construction properties. Of course, you will still reap the benefits of lower interest rates and strong appreciation rates, too.
Building a new home also has its benefits
If you are considering new construction, homes aren’t getting any less expensive to build. Michael is a licensed Realtor, but his primary business is owning and operating MGB Construction Services. He will tell you how much building costs have gone up and are continuing to go up.
If you are thinking of building a new home, it won’t be less money to build next year or the year after—it will cost more. However, building your own home also comes with a lot of benefits, such as lower interest rates, strong appreciation rates, quicker equity, and lower home maintenance costs.
Ready to Get Started?
If you have been thinking that your current home isn’t quite working for you anymore, it might be time to find something bigger, smaller, newer, or different. Take your cue from the market insiders—the agents who show and sell homes every day: this is a great year to sell your home.
If you need help from an experienced real estate team, please reach out to us. It would be our pleasure to help you!