In Pittsburgh, the number of homes sold for over a million dollars in 2022 was a record. This is despite the fact that interest rates were at an unprecedented level.
Leads, the weekly section of Business Times, will feature 357 sales in 2022 that are seven-figure homes. This was a 38% increase from the previous record of 258 homes sold in 2021.
In 2020, 171 homes worth more than $1 million were sold in the region. This was the highest number ever, but only half of the total in 2022.
Seven homes sold for more than $3 million last year. In 2020, this number will be three.
In terms of monthly sales, too, 2022 was a record-breaking year. In 2022, the three months with the highest sales for homes worth a million dollars were June, July and November.
A number that is also worth mentioning: $1.5 Million. In 2020 and 2021 there were 60 and a 64 homes that sold for over $1.5 million. This number will increase to 116 in 2022.
Inflation has certainly played a part. As prices rise and more homes reach the threshold, more homes are being sold for over $1 million in more neighborhoods.
Real estate executives said that cash is the king in this price range. They say that more and more people are opting to pay higher interest rates by paying in cash. The average 30-year fixed-rate mortgage, which was below 3% at the beginning of 2021, is now over 6%.
The tight inventory allows for quick decisions to be made and multiple offers, even when interest rates are higher.
Dennis Cestra Jr. is the president of Howard Hanna Real Estate Services in Pennsylvania. He says that despite the tight inventory, there have been slightly more listings over $1 million dollars so far this year compared to 2022. This represents an increase of 5.6%.
In January, 23 homes sold for more than $1 million, as compared to 13 in January 2020, 10 in January 2121, and 9 in January 2020.