Though you might find it interesting that Pittsburgh beat out NYC for walk-ability in a national review. Not bad from a city that has come from the old dreary steel mill days to the beautiful city we call home. Here is the link if you are interested in reading more: http://bike-pgh.org/2007/12/04/pittsburgh-area-ranked-9th-in-nation-in-walkability/
Greater Pittsburgh Community Food Bank Facts
Do you know…
YOU CAN MAKE A DIFFERENCE!
ü Encourage your customers to bring their non-perishables to your office’s drop box.
ü Encourage other party in your transaction to bring their non-perishables to your office’s drop box.
ü Spread the word. An excellent way to keep in touch with clients on an annual basis is through a virtual food drive.*
ü Volunteer your time.*
Shopping List:
Realtors® and Affiliates
Ending Hunger One House at a Time
* Contact 412-460-3663 x 301 or volops@gpcfb.org for volunteer information.
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:
Source: NAR
A Pittsburgh area couple has sued Google Inc., saying that the picture of their home on the Google Map’s Street View neighborhood photos violates their privacy, devalued their property, and caused them mental distress.
Google’s Street View function shows street-level images of homes and businesses in many parts of the country.
The couple suing Google, Aaron and Christine Boring, say one reason they bought their home in Franklin Park, Pa., was because of a desire for privacy. They say the images of their home on the Google site included their driveway, labeled “Private Road,” and were probably shot from that vantage, which meant the Google photographer trespassed.
A Google spokesman says the lawsuit is without merit because Google offers tools for removing a property from the Web site when a property owner doesn’t want it there.
But the couple’s attorney, Dennis Moskal, says that isn’t the point. Instead, the couple hopes the lawsuit will deter Google from violating other people’s privacy in the future.
Source: The Associated Press, Joe Mandak (04/04/08)
Pittsburgh continues to rank as one of the nation’s most stable residential real estate markets, according to a recent study.
There is a less than 1 percent chance that home prices in the Pittsburgh region will be lower in two years than they are today, according to the study released by Walnut Creek, Calif.-based PMI Mortgage Insurance Co.
“The reason that Pittsburgh has such a low risk is that prices there never exploded like they did in other parts of the country,” said David Berson, chief economist with PMI. “There were very stable home price gains.”
Only one other metropolitan area, Fort Worth-Arlington, Texas, had a smaller chance of seeing home prices decrease in two years, according to the study.
Topping the list as most risky real estate markets were Riverside-San Bernardino-Ontario, Calif. (93 percent), Las Vegas-Paradise, Nev. (91 percent), and Orlando-Kissimee, Fla. (85 percent).
The quarterly ranking, which uses data from the Office of Federal Housing Enterprise Oversight, considers only loans made by Freddie Mac and Fannie Mae. It does not include jumbo or subprime loans.
Cortesy of Pittsburgh Business Times
Most sellers have an emotional connection to their home and feel it deserves top dollar when being sold. Everyone naturally wants to get the most money for his or her product, but “sellers must not be hasty with this all-important decision,” cautions real estate expert Robert Jenson, founder and CEO of The Jenson Group. “Indeed, the most common mistake that causes sellers to get less than they hope for is listing the sale price too high.”
Jenson notes, “Listings reach the greatest proportion of potential buyers within the initial days and weeks after hitting the market. If a property is overpriced early on, it will be dismissed - or outright missed - by prospective buyers and may result in price reductions that will reflect poorly on the listing. Overpriced properties languish on the market, and most end up selling at a lower price than would have been realized had it been priced properly in the first place.”
To help would-be sellers foster maximum profits with their real estate transaction, Jenson offers these insights on the various elements that must be considered when establishing a fair, competitive and marketable sale price for a home:
1. Square footage: Total square footage is an important consideration when establishing a home’s sale price, but this is usually just a starting point for buyers who will use it to narrow down the field, but make an actual purchase decision based on many other factors. There are some general rules of thumb to know when considering a home’s price per square foot, such as smaller homes generally get a higher price/foot than large homes, and single stories will sell for a higher price/foot than a two story.
2. Location within community: Homes that back up to a busy street get, on average, 10-20% less than homes elsewhere in a neighborhood. Anticipate this type of obstacle and factor it into the original sale price to avoid inevitable price reductions down the road, which reflect poorly on the listing and will likely cause it to sell at a lower price than would have been realized had it been priced properly at the onset. Quiet cul-de sacs, golf or water frontage, lots that offer privacy are value adds that can certainly justify a higher sale price than other homes in a community - or be leveraged as an advantage against competing listings.
3. Views…or lack thereof: Whether it is the ocean, a downtown skyline, the mountains, water or some other desirable landscape, buyers are willing to pay a premium for views and a home should be priced accordingly. Just be realistic. A view that can only be had by standing on the counter from the second story looking out the window to the left simply doesn’t count, and it’s inadvisable to dupe a prospective buyer by adding this to the listing’s MLS description.
4. Upgrades and features: It’s a simple formula: upgrades = sold. For a home to sell quickly and for the price desired, it must be “finished” with as many structural and interior design upgrades as possible…and nothing’s too small to leverage in establishing a home’s price point. From crown molding to faux paining to door handles and cabinet handles/knobs with modern finishes, to more obvious upgrades such as appliances, window, counter, cabinet and floor treatments, to swimming pools and surround sound wiring…any functional or beautification enhancement to a home are considerations in establishing its true value and strategic sale price.
5. Community amenities: Guard-gated communities or those with amenities such as a clubhouse, swimming pool and/or fitness center are also elements that often raise a home’s price per square foot. When pricing a home without these benefits, know whether you are competing against other homes that do offer such value adds so that you can price your home as aggressively and competitively as possible.
6. Comparable sales: Price your home referencing sold comparables -price per square footage of other homes that have already sold in your community - up to 3-months old maximum, as looking beyond 3-months is simply not a realistic portrayal of current market conditions and may steer you in a wrong direction. It’s also as important to compare your listing to active competing listings - homes currently for sale, which is the best tool for honing an effective pricing strategy - particularly for highly motivated sellers.
7. Professional appraisal: Sellers often frown on the idea of paying for an appraisal before there’s even an offer on the table, but doing so is actually one of the most important things a seller can do in pricing a home relative to current market conditions. Want to sell the home quickly? Price it at or below the appraised value as buyers are educated, are shopping deals, and will recognize your fair price and be more apt to pay it with less haggling.
8. Current mortgage conditions: The current mortgage market has tightened its proverbial belt and many lenders now require higher credit scores coupled with higher down payments, which can cash strap a buyer who will most definitely be holding out for the best deal possible. Every seller naturally wants to get the most money for his or her product, but a savvy seller will understand the mortgage industry’s impact on the buyer and will price accordingly.
Courtesy of RISMEDIA March 28,2008
A flood of foreclosures swamped the Pittsburgh region in February, which saw the most foreclosed homes in more than two decades.
Four hundred owners lost their homes in February in the five-county Pittsburgh region, 64 more than February of last year, according to RealSTATs, a South Side-based real estate information company.
In the 22 years since RealSTATs began keeping records, no one month has recorded more foreclosures than February’s total.
Allegheny County led the pack with 222 home foreclosures in February, up 55 from February 2007. Butler and Washington counties had 16 and 17 more foreclosures in February than the same month last year, respectively.
“‘How long will it last’ and ‘how bad will it get’ are two questions many want to have answered,” said Daniel Murrer, vice president of RealSTATs, in a statement. “February’s 19 percent jump in foreclosures combined with an 11.4 percent drop in market activity is troubling news for Western Pennsylvania. We’ve seen the clouds on the horizon, the storm is now here.”
Courtesy of the Pittsburgh Business Times
Before a home owner curses the troubled housing market, he or she should take solace in the U.S. tax code, which makes buying a home a good deal for almost everyone.
Here’s why:
Mortgage interest deductions, including in some cases mortgage insurance premiums, reduce home owners’ tax liability by reducing income. The deduction includes interest paid on both a first and a second home.
Interest on home equity loans is also deductible — whether the borrower uses the money to remodel the kitchen or to take a vacation to Disney World.
Profits from selling a house are potentially a huge windfall. When a home owner sells a primary residence, any profit on the sale of the property is tax free up to $250,000 for single home owners and $500,000 for married home owners filing. Any profit above that is nearly always a long-term capital gain taxed at 15 percent — less if the seller’s tax rate is less than 20 percent.
Home owners can itemize. That opens up opportunities to deduct a host of other items that wouldn’t be deductible if the taxpayer took the standard deduction.
Source: The Boston Globe, Leonard Wiener (03/02/08)
The number of foreclosures in the Pittsburgh area fell almost 30 percent from a year ago, and the city ranked 86th of 100 cities tracked for foreclosure rate in 2007.
Irvine, Calif.-based RealtyTrac Inc. said Pittsburgh logged 9,012 default notices, auction sale notices and bank repossessions on 4,040 properties last year.
The Detroit area had the highest foreclosure rate in the nation last year at one property facing foreclosure for every 20 households, about five times the national average of one for every 97 households. Cities in Ohio, California, Florida and Michigan dominated the metro areas with the 20 highest foreclosure rates nationwide, accounting for 15.
Courtesy of the Pittsburgh Business Times