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Sellers Seek High Prices for Foreclosed Condos and Distressed Homes

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By : John Cutts    99 or more times read
Residential properties and even foreclosed condos are still being sold at prices that are not commensurate to the actual condition of the housing market, industry analysts have stated. According to them, some sellers are still pricing their properties too high, which prevent them from getting their homes sold.

According to local analysts, repo houses in Philadelphia are selling cheap for the most part, but there are other types of residences that are priced way too high, with most real estate agents unaware of the current realities of the area's housing market. They revealed that some segments of the home market have experienced bigger price declines than others and agents should be aware of this.

The huge supplies of Pennsylvania repossessed properties and foreclosures have hammered prices in the more expensive housing segment, analysts have revealed. They stated that houses priced between half a million and one million dollars have declined in value by almost 10%, while prices of those selling for one million or more have dropped by at least 20%. Listing services have revealed that they have turned away a number of listings because agents and sellers have been asking for more than what current market conditions can afford.

Analysts stated that sellers and real property agents should take into consideration the condition of the neighborhood and the amount of foreclosed condos and distressed homes in the area, and not rely solely on the actual value of the property being sold. They also stated that the length of time that the property has remained unsold after getting listed should depress its value further.

With repo houses listings and foreclosures accounting for a huge percentage of home sales, median and average prices have declined in Philadelphia in the past few months. In the fourth quarter of 2010, the median selling price of houses in the metro area was pegged at $200,000. Considering the current mortgage rate and the 20% down payment that will be likely required, the price is just about right.

However, analysts stated that, if rates increased to around 7%, the price of an ideal purchase will decline to around $162,500. They argued that the increase or decrease in the number of distressed homes and foreclosed condos in the area will also play a role.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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