End of Year Report: Metro New Construction Median Sale Price Per Square Foot in Pittsburgh, PA (2023)

End of Year Report: Metro New Construction Median Sale Price Per Square Foot in Pittsburgh, PA (2023)

Introduction:
The real estate market in Pittsburgh, PA witnessed fluctuations in the median sale price per square foot (SF) for newly constructed houses throughout 2023. Analyzing the monthly data provided by Zillow, we present a comprehensive overview of the market trends, highlighting highs and lows, quarterly averages, annual averages, and percentage changes. Additionally, we offer insights to guide clients on whether 2023 was conducive for buying or selling a new home, along with a predictive analysis for the market outlook in 2024.

Monthly Median Sale Price Per SF:
Below is the rounded-off data representing the monthly median sale price per SF in US dollars for new houses in Pittsburgh, PA from January 2023 to November 2023:

Trends and Relationships:

• Highs: The highest median sale price per SF was observed in November at $230.00, indicating potential market strength and demand.
• Lows: July recorded the lowest median sale price per SF at $189.39, signaling a dip in market activity during that period.
• Fluctuations: The data showcases fluctuations throughout the year, indicating market volatility and changing consumer preferences.

Monthly Percentage Changes:
To understand the monthly fluctuations more clearly, we calculated the percentage change from the previous month. The table below illustrates these changes:

Annual Average:
The annual average median sale price per SF for 2023 is calculated as follows:

Annual Average = (Sum of Monthly Median Sale Prices Per SF) / (Number of Months)

Annual Average = (256.21 + 192.90 + 214.12 + 215.44 + 219.98 + 207.92 + 189.39 + 205.15 + 189.99 + 205.16 + 230.00) / 11
Annual Average = 207.15 USD/SF

Quarterly Averages:
Quarterly averages provide insights into the market performance over broader periods. The quarterly averages for 2023 are as follows:

• Q1 (January – March): 221.07 USD/SF
• Q2 (April – June): 214.78 USD/SF
• Q3 (July – September): 194.18 USD/SF
• Q4 (October – November): 217.58 USD/SF

Closing and Ending Figures:

• Closing Figure: The median sale price per SF at the end of November 2023 was $230.00.
• Ending Figure: The median sale price per SF at the conclusion of December 2023 is not provided in the data.

Market Analysis and Prediction:
Based on the provided data, 2023 exhibited a mixed market scenario in Pittsburgh, PA. While there were notable highs, such as in November, indicating potential periods of high demand, there were also lows, particularly in July, suggesting periods of decreased market activity.

For clients considering buying or selling a new home:

• Buying: Given the fluctuations observed throughout the year, buyers may find opportunities during periods of lower median sale prices per SF, such as in July and September. However, they should remain vigilant and consider market trends carefully.
• Selling: Sellers may benefit from market highs, particularly in months like November, where the median sale price per SF peaked. However, timing is crucial, and sellers should assess market conditions before listing their properties.

As for the market outlook in 2024, it is anticipated that the market will continue to exhibit fluctuations influenced by various factors, including economic conditions, interest rates, and housing supply.