The Pittsburgh, PA metro area housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing and sales activity. The Median Sales Price has decreased by 1.3% year-over-year, settling at $225,000. In contrast, the Median List Price has surged by 10.7% to $249,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics further highlight this divergence. The median Price Per Square Foot has risen by 7.8% to $158.98, while the Median List Price per square foot has increased by 6.9% to $170.75. These figures suggest that while sellers are optimistic about property values, buyers are exercising caution, possibly due to broader economic conditions.

Sales activity reflects a cooling market, with Homes Sold declining by 3.8% year-over-year to 1,257 units. Pending Sales have also decreased slightly by 1.1%, totaling 1,955. New Listings have dropped significantly by 8.4%, reaching 1,547, which may indicate a reluctance among homeowners to sell in the current market environment.

Inventory levels have seen a modest increase of 1.1%, bringing the total to 5,646 homes. This rise in inventory, coupled with a 20% increase in Months of Supply to 4.5 months, suggests a shift towards a more balanced market, albeit with a tilt towards buyers. The Median Days on Market have increased by 6%, now averaging 74 days, further indicating a slowdown in sales velocity.

The average sale to list ratio has improved slightly by 0.8%, reaching 96.4%, while the percentage of Homes Sold above list price has increased by 1.4% to 19.4%. These metrics suggest that while fewer homes are selling, those that do are achieving closer to their asking prices. However, the rate of Price Drops has risen by 0.9% to 21.1%, reflecting ongoing adjustments by sellers to align with market realities.

Finally, the percentage of homes going off the market within two weeks has decreased by 5.9% to 30.1%, indicating a slower pace of transactions. This slowdown may be attributed to the current economic climate and buyer hesitancy.

Overall, the Pittsburgh housing market in January 2025 is characterized by a mix of rising list prices and declining sales, suggesting a cautious approach by both buyers and sellers. As the market continues to adjust, stakeholders will need to navigate these dynamics carefully to achieve their real estate objectives.