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Pennsylvania and Michigan Threatened by Foreclosure Problems

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By : Leticia Carvalho    99 or more times read
The U.S. economic crisis has taken its toll on real estate ventures. The hardest hit is California, Florida and Nevada. Although the problem is not as severe, Lehigh Valley and Northampton housing problems have led to Pennsylvania foreclosures.

Last October, the Lehigh Valley experienced the worst sales; a dismal 413 homes costing $212,000 were sold. Compared to last year’s figures, these sales reflect a 3.6 percent decrease from the same month 25 percent drop. The National Association of Realtors also reported a 9 percent sales drop in the median price from the year before.

In fact, a new home in the county would sell for an average price of $389,000, down 6.4% from last year. As a consequence, fewer homes have been constructed in the area. Home building has dropped 25 percent in both Lehigh and Northampton, with only 114 building permits issued.

Both Lehigh and Northampton have been rocked by foreclosure problems as home sales have been taking a downward turn since two years ago. Data gathered in October show that it takes 71 days for the average home to be sold, a 56-day increase when compared to last year. The situation has forced sellers to give up their homes at very low prices, or to opt for foreclosure.

From July to September 30, there were 411 “distressed” homes in Lehigh. The number of foreclosures is twice that of 2007 figures. Housing data in the national scale has yet to be released.

The last time Lehigh experienced gains in housing sales was from 2000 to 2006 when there were several years of two-digit price increases. Still, the sales were not as high as Las Vegas‘ and Miami’s.

Economists predict the housing crisis in Lehigh Valley and Pennsylvania foreclosures to continue, with prices hitting rock-bottom at $200,000 in spring 2009.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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