The Pittsburgh region’s home sale activity continued to slow in April and median home prices dipped for the second time since 2005.

Sales activity in the five-county Pittsburgh region fell in April, with the number of sales down 13.2 percent from April of last year, according to a report from South Side-based RealSTATs, a real estate information company.

Sales volume slowed in all five counties — Allegheny, Beaver, Butler, Washington and Westmoreland — with a drop of 25.6 percent in Butler leading the way.

At the same time, median home prices dropped from $112,000 in April of last year to $110,000 last month.

Despite the drop, the region’s median home price has experienced 3.7 percent annualized appreciation since 2000 when the median home price was $85,000.

Courtesy of the Pittsburgh Business Times

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BUT WAIT!!

The Pittsburgh Business Times does a great job with the article but did anyone read the last line about the home prices in Pgh appreciation rate since 2000??? This is important and we need to analyse this for what it really says. Our home prices have steadily increased at a rate quoted as 3.7% annually for a total of 129% increase in property value since 2000. This is using the $85k median price of 2000 versus the now adjusted rate of $110k median price. Ask anyone who invests their money and see if they are having a steady 30% increase in their stocks? This still goes to show you that investing in Pgh real estate is a solid investment. Have the values decreased a little, yes, but when I look at the big picture I see the real value in real estate. As any stock broker will tell you it’s about the big picture over a long period of time not the month to month surveys that really mean something. Has there been a slowing in the market, well this depends on who you talk to. I have been swamped with very qualified buyers and realistic home sellers whose homes we are selling.  Gone is the day of pricing your home higher than the neighbors because they sold their home for (XXX,XXX) and yours is worth more “just because it is”. A good agent is not selling the “dome and gloom” but a realistic market analysis based on real facts. A good agent is presenting a solid written marketing plan that is above and beyond the “typical” marketing plans of the past. These two combined are what make the difference on what side of the statistics you are on! 

So seller’s don’t be afraid and buyer’s keep looking the Pittsburgh market is a good investment! Do your homework and hire the right agent who can guide you through the process even if this means taking your time and interviewing a number of agents. It is far better to wait a few weeks and chose the right agent then to sign with an agent and get locked into a contract and waste 6 months!

Best of luck buying and selling!!

A flat pattern in home sales activity should continue for the next couple of months before improving over the summer, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. “Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas,” he says. “As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available.”

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, edged down 1.0 percent to 83.0 from a downwardly revised level of 83.8 in February, and was 20.1 percent lower than the March 2007 index of 103.9.

NAR President Richard F. Gaylord says additional costs in many markets are hindering a recovery. “Our members are telling us that more buyers are looking at homes but are slow in signing contracts, and that’s contributing to the weakness in pending home sales,” he says. “In many cases buyers are waiting for greater access to affordable credit, especially in higher cost areas, but some are disappointed with what appears to be unnecessarily restrictive lending requirements. The good news this week is there is some discussion toward relaxing some of the burdensome lending practices.”

The PHSI in the Northeast jumped 12.5 percent in March to 80.8 but remains 15.4 percent below a year ago. In the South, the index slipped 0.1 percent to 84.9 and is 26.7 percent lower than March 2007. The index in the West declined 1.4 percent in March to 91.2 and is 9.5 percent below a year ago. In the Midwest, the index fell 10.4 percent in March to 74.1 and is 22.3 percent below March 2007.

Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year. “Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied,” Yun says. The median price is forecast at $213,700 this year before rising 4.1 percent to $222,600 in 2009.

Some areas already are seeing sales increases, underscoring that all real estate is local. In March, unpublished snapshot data shows sales in Bakersfield, Calif., and Jackson, Miss., were higher than a year ago. At the same time, price gains were noted in markets such as Buffalo-Niagara Falls, and Cedar Rapids, Iowa.

On May 13, NAR will report first-quarter data on metropolitan area home prices, covering about 150 metro areas, and state home sales. “Although some market adjustments are necessary, a downward overshooting of the housing market would cause unnecessary loss in economic output, income, and jobs,” Yun says. “It is critical to stimulate housing demand by inducing fence sitters back into the market. A home buyer tax credit on any home purchase would accomplish that.”

Here are some highlights from NAR’s report:

• New-homes. Sales of new homes are expected to fall 30.9 percent to 536,000 this year before rising 10.1 percent to 590,000 in 2009. Housing starts, including multifamily units, will probably drop 29.5 percent to 955,000 in 2008, and then rise 1.3 percent to 967,000 next year. The median new-home price is estimated to fall 3.7 percent to $238,000 this year, and then rise 5.4 percent in 2009 to $250,900.

• Rates. The 30-year fixed-rate mortgage is likely to rise gradually to 6.2 percent by the end of the year, and then average 6.3 percent in 2009.

• Affordability.NAR’s housing affordability index is expected to rise 10 percentage points to 127.0 for all of 2008.

• GDP. Growth in the U.S. gross domestic product (GDP) should be 1.5 percent this year and 2.3 percent in 2009. The unemployment rate is projected to average 5.3 percent in 2008 and 5.5 percent next year.

• Inflation. Inflation, as measured by the Consumer Price Index, is seen at 3.4 percent this year and 2.2 percent in 2009. Inflation-adjusted disposable personal income is forecast to grow 1.2 percent in 2008 and 3.0 percent next year.

Source: NAR