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Pittsburgh foreclosures for sale curtailed home price increases in the July-September quarter, based on data from the National Association of Realtors.

The median sales price for single-family homes during the quarter in the Pittsburgh metro area increased by only $400 to $124,600 from $124,200 in the April-June quarter and increased by $1,900 from $122,700 in the July-September quarter last year.

The median sales price for all types of homes sold in 2008 was $118,400 while it was $120,700 in 2007 and was $116,100 in 2006.

During the quarter, the median sales price for previously owned single-family homes in 123 metropolitan areas in the U.S. decreased compared to the median during the same quarter in 2008. In 30 of the metro areas, the median sales price increased.

The median sales price nationwide for single-family homes in the July-September quarter dropped by more than 11 percent to $177,900, compared to the same quarter in 2008. Foreclosure sales and short sales, which comprised 30 percent of all residential sales, pushed down sales prices for non-distressed properties.

Based on a foreclosure report released by a real estate research company, the number of Pittsburgh foreclosures for sale in the residential sector dropped in the July-September quarter. A total of 2,671 residential properties in the Pittsburgh metro area received foreclosure actions, representing 0.24 percent of all residential units in the area.

The pace of foreclosure activity decreased by more than 20 percent compared to the same quarter in 2008 and by nearly 18 percent from the April-June quarter. Housing analysts contended that the relatively strong economic conditions of Pittsburgh and its foreclosure prevention programs were able to curb the increase in foreclosures in the area.

Additionally, the intensified efforts of federal agencies to implement the Home Affordable Modification Program have apparently been effective in curtailing the flow of troubled mortgages into foreclosure.

According to NAR chief economist Lawrence Yun, foreclosure properties are expected to occur in many markets, but the expansion and extension of the federal tax credit for first time buyers will help increase home sales, stabilize home prices, reduce the number of borrowers with negative equity and help stem foreclosures.

Yun said that sales of previously owned homes continued to rise in most states largely because of the tax credit, with the nationwide home sales increasing by more than 11 percent to an annualized pace of 5.3 million residential units in the July-September quarter.

Phoenix foreclosures for sale have been growing in the commercial and industrial sectors, based on several published reports of industrial and commercial foreclosure sales in the Phoenix metro area in recent weeks.

Among these is the sale of the foreclosed La Mesa Village apartment complex in Mesa to Los Angeles-based Ennabe Properties for $5 million. According to Marcus & Millichap executive Alon Shnitzer, Ennabe beat out 21 other prospective buyers because Ennabe proved its capability to pay in cash and close quickly.

Shnitzer explained further that Ennabe paid a low price because the 256-unit property had a low occupancy rate and a negative cash flow. The multifamily building was formerly owned by another Los Angeles real estate firm, SRS Properties. Because of the falling occupancy rate and the troubled cash flow, SRS failed to pay its loans and ultimately fell into foreclosure early this year.

Nancy Ennabe said that the property can become profitable with upgrades. She added that her company is looking for other Phoenix foreclosures for sale, including non-distressed multifamily properties with strong profit potentials.

Based on data from Colliers International, vacancies in the industrial and commercial sectors in the Phoenix metro area rose by 17.5 percent in the July-September quarter because of the high unemployment rate, lack of available credit and lack of business tenants.

CB Richard also affirmed the Colliers finding, but its vacancy rate report shows a lower rate at 15.8 percent, an increase from 15.2 percent in the previous quarter and a substantial increase from 12.1 percent in the July-September quarter in 2008.

The biggest drops in average lease rates occurred in the northeast part of the Phoenix metro area and the lowest drops occurred in the southwest portions. The vacancies have pushed down industrial construction from 5.8 million square feet of space in last year’s third quarter to only 1.2 million in the July-September quarter.

However, sales of non-distressed commercial buildings in the Phoenix metro area stepped up. Among these was the sale of the 316-unit Crossroads multifamily complex at the Deer Valley area in Phoenix by AIMCO to Olympus Properties for $31,200 per apartment unit or a total of $9.85 million. The complex was constructed in 1982.

Another was the sale of 72 condo units at the Mark condo complex in Scottsdale by Toll Brothers Arizona to Silverman Companies, which plans to reposition the project and resell the condo units.

Philadelphia foreclosures for sale dropped in number in October, but defaults on residential construction mortgages loomed as more banks report on problems with their housing development loans.

According to a foreclosure report from a California-based real estate research company, 0.42 percent of residential units in the Philadelphia metro area were in foreclosure in October, much below the foreclosure-battered cities, such as Phoenix, where 2.43 percent were in foreclosure, and Las Vegas, where 5.13 percent were in foreclosure.

Statewide, foreclosure activity grew slightly by 0.93 percent from September and by nearly 39 percent from October last year, but compared to other states, Pennsylvania was performing better as it was 34th on the ranking of states based on foreclosure rates.

A total of 5,545 residential units in Pennsylvania were notified of delinquency or foreclosure, with more than 1,200 units already repossessed by banks. One unit out of every 988 housing units in Pennsylvania received a default or foreclosure notice.

According to analysts, the major causes of foreclosures, namely unemployment, negative equity and high-risk mortgage loans, are still expected to push many distressed homeowners into default.

In the coming months, more Philadelphia foreclosures for sale are expected, according to reports from local banks. As of the end of September, the percentage of problem construction and other mortgage loans in the 15 biggest banks in the city has risen to almost 3 percent, far above the 0.89 percent in September last year.

The 15 banks have about $1.1 billion in problem loans, which they have to remedy through restructuring, extension, foreclosure or other means.

To help these struggling banks in Philadelphia, the Federal Reserve kept its federal funds rates low at zero to 0.25 percent so the banks can borrow at very low costs and then earn from the fewer loans they have been making.

Kent Lufkin, head of TF Financial Corporation, said that banks now need to keep an eye on their reserves and their lending practices. He added that his bank has been able to keep nonperforming loans at a low level because of his bank’s strict lending practices.

In contrast, Abington Bancorp lent aggressively to the residential construction sector and now has the highest percentage of bad loans in the region. Among the buildings that it had repossessed recently was the American Loft, which it took back in June at a foreclosure sale for $8.6 million.

Orlando foreclosures for sale are still high in number despite a decrease in foreclosure postings in October, based on a foreclosure report released by a real estate research company based in California.

Bank foreclosures listings in the San Francisco Bay Area slowed in October, but defaults continued to rise, based on data from a real estate firm that tracks nationwide foreclosures.

Miami foreclosures for sale have been rising in number in the multifamily sector. Investors interested in apartment, condominium and other multifamily properties can take a look at these properties which are being foreclosed and repossessed by banks in Miami.

Bank foreclosures for sale pushed house sales up and drove prices down in the Twin Cities of Minnesota in October, based on reports from realtor associations in the area.

About 50 families living in Fort Worth foreclosures for sale are given a chance to remain in their houses. The Texas city has helped 50 lower-income families become first-time buyers under a federal initiate aimed at reducing the number of foreclosure properties.

Los Angeles foreclosures for sale slowed in October as banks held off pursuing foreclosure actions on defaulting mortgages and complied with state moratorium and federal loan modification programs.

The percentage of Las Vegas foreclosures for sale that closed in October declined, but the percentage was still high, keeping at bay home price increases, based on data from the Greater Las Vegas Association of Realtors.