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Pittsburgh Pre Foreclosure Homes Contributing to House Sales

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By : John Cutts    99 or more times read
Pre foreclosure homes in Pittsburgh are contributing to the increase in pending home sales in the metro area, based on data from research firms and the National Association of Realtors.

According to a firm specializing in selling homes in Pennsylvania and neighboring states, pending home sales in Pittsburgh and in other parts of western Pennsylvania increased year-over-year by 33 percent in February, much higher than the 8.2-percent increase in pending home sales nationwide.

Real estate CEO Howard Hanna III said that total pending sales in the region that includes the states of Ohio, New York and West Virginia also posted an increase of 30 percent in pending sales. Hanna added he expects an increase of 30 percent in home sales in March compared to sales in March last year after records are tallied. He is hoping that the approaching expiration of the federal tax credits again enticed buyers.

On the other hand, Michael Larson, an analyst working for Weiss Research, said that he does not expect a strong market resurgence as he still sees the entry of Pittsburgh pre foreclosure homes and commercial foreclosed homes into the market.

Although the pace of foreclosures in Pittsburgh in 2009 slowed down by 8 percent from 2008 and although Pittsburgh is among U.S. cities not battered by the foreclosure crisis, the rising problem of underwater borrowers is bothering local housing officials.

According to another research firm, there are around 18,200 Pittsburgh homeowners whose mortgages are underwater as of the end of February this year. This number represented 5.7 percent of all residential mortgages in the city.

Nationwide, there are over 11.3 million homeowners wallowing in negative equity or 24 percent of all home mortgages in the country. The research firm contended that these homeowners will reach positive equity only in 2020.

Low home values, however, are a great opportunity for home buyers. In certain neighborhoods in the Pittsburgh metro area, home sales are rising because of the substantial price discounts in home prices.

In Carnegie, the median sales price has dropped from $92,000 in 2008 to $85,100 this year. In Crafton, the median fell from $105,900 in 2008 to $97,900 in 2009. Thornburg had the biggest discount as the median plunged from $285,000 in 2008 to $180,845 this year.

With Forbes magazine citing Pittsburgh as the best city to buy a house, investors and home buyers are being encouraged to buy Pittsburgh pre foreclosure homes and other types of residential units in the metro area.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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