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.

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.

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.

In October, the four-county Orlando metro area had 7,552 of its housing units in foreclosure, marking a one-percent drop from filings in the previous month but still higher than filings in October last year. In September, a total of 7,618 residential units were hit with foreclosure actions while in October last year, a total of 7,041 units received foreclosure notices.

According to the research firm, October was the second consecutive month that foreclosure filings dropped slightly in the Orlando metropolitan area. The decreases however do not necessarily show a trend, the researchers said. They contended that the decreases may just have resulted from delays in foreclosure actions from lenders which are trying to comply with the Home Affordable Modification Program or with state mediation programs.

Among the 4 counties that comprise the Orlando metropolitan area, Osceola showed the biggest drop in foreclosure filings, with a drop of 25 percent from September. Filings dropped by 3 percent in Lake; one percent in Orange; and also 25 percent in Seminole.

Nearby but outside the Orlando area, Volusia County posted an increase of 3 percent, with nearly 1,500 of its housing units receiving a foreclosure filing.

Compared to foreclosure activity in other Florida metro areas, Orlando foreclosures for sale ranked second only to the Miami metro area. With a foreclosure pace of one out of every 117 households, the Orlando area was 9th in a ranking of the country’s biggest metro areas based on foreclosure rates.

In the Miami area, nearly 18,000 residential units were hit with foreclosure actions, the highest in the state. The area covered by Tampa, Saint Petersburg and Clearwater was third, with more than 6,200 of its housing units in foreclosure.

Meanwhile, Florida ranked third in the country based on pace of foreclosure activity in October, with one out of every 168 residential units in foreclosure.

Nearly 52,000 households in Florida were hit with foreclosure actions, marking a six-percent drop from September this year and a four-percent decrease from October last year. Only Nevada and California had higher foreclosure rates than Florida. Nevada posted a foreclosure rate of 1 in every 80 units while California posted a rate of 1 in every 186 units.

In October, more than 5,600 residential units in the Bay Area were hit with default or foreclosure filings, a substantial drop of 34 percent from September but nearly 17 percent higher than filings in October last year.

Of the over 5,600 foreclosure filings, the number of units repossessed by banks significantly decreased while the number of default notices substantially increased.

The drop in REO units, according to analysts, is largely due to the stepped up efforts of the Home Affordable Modification Program to modify more distressed mortgages and prevent them from going into foreclosure.

But according to Mark Hanson, director of real estate research company Field Check Group, many borrowers whose mortgages were modified are expected to redefault, increasing the number of Bay Area foreclosures in the coming months.

Hanson explained that loan modifications create a huge backlog of foreclosures, temporarily holding off foreclosure properties from entering bank foreclosures listings. Based on foreclosure reports studied by Hanson, about 50 to 70 percent of all owners of modified mortgages redefaulted.

In October, over 2,400 Bay Area households were given notices of default, a substantial increase of more than 72 percent from October last year. Another 2,234 households went on to the next stage of foreclosure – the provision of notices of trustee sale, marking an increase of more than 37 percent. Another 947 homes were finally repossessed by banks, representing more than 46 percent of increase.

The trustee sale documents notify homeowners that their houses are up for foreclosure auction, and most of these properties end up being repossessed by banks, but recently, because of the increase in loan modifications, the number of REO units has been dropping.

Foreclosure researchers contended that the major reasons for foreclosures in October were unemployment and the resetting of pay option adjustable-rate mortgage loans. They said that borrowers who took out ARM loans usually had higher credit scores than subprime mortgage borrowers, but chose lower monthly payments during the initial years of the loan term.

Based on the nationwide foreclosure report for October, 7 of the country’s large metro areas with the highest rates of properties entering bank foreclosure listings were in California, topped by the Vallejo and Modesto areas which both had a foreclosure rate of one out of every 81 households in foreclosure.

Among these multifamily complexes being repossessed is the 117-unit multifamily complex in Miami Beach called Terra Beachside Villas. Investors can have an easier time buying units from this complex because the mortgage acquirer, BNH 6000 Collins, had a friendly foreclosure agreement with the defaulting developer, even allowing the developer to continue selling units.

BNH 6000 Collins, a subsidiary of BH III LLC, acquired the original mortgage of $46.4 million this month from Regions Bank, which foreclosed the property in December 2008. Gregory Freedman, head of GMC Mortgage Capital and who co-manages BH III LLC with Charles Phelan and Daniel Labersohn, said that his group was able to purchase the property from Regions Bank at a price lower than the original bid they offered the bank about 13 months ago.

Freedman said his group wanted the building because of the good location and the quality of construction. His team has hired Ironbridge to finish the 95-percent complete building so that units can be sold starting March next year. He said sales prices will range from $299,000 for one-bedroom units to $1 million for three-bedroom units.

Another multifamily entering lists of Miami foreclosures for sale is the two-building apartment complex along Tamiami Canal Drive called Airport Villas Suites. These apartment buildings have 45 units each and feature a fitness center and a swimming pool. There are also units furnished with satellite TV and Wi-Fi.

The developer, Out Island Properties, failed to pay the $7.5 million loan it took out in April 2008 from TotalBank, which has launched a foreclosure lawsuit claiming $8.5 million. Out Island purchased the buildings in 1997 for $3 million.

Investors can also look at condo units at the South of Fifth condo complex in South Beach. This 28-unit seven-story mixed-use building, developed by BR Villa Luisa, was foreclosed by iStar FM Loans, which launched a foreclosure action to collect $78.9 million. Only three units were sold by the developer, leaving 25 unsold units for iStar to claim.

In addition to multifamily properties, foreclosed residential and commercial properties also abound in Miami.

The average sales price for homes sold in the area fell to $169,000 in October, much lower than the average price of $180,000 during the same month last year. Because of the attractive prices, investors and home buyers were enticed to buy, pushing the number of home purchase agreements up by 34 percent from October last year and the number of completed sales up by nearly 28 percent.

The lower price average resulted from the still high percentage of foreclosure sales and short sales in October, comprising nearly 39 percent of all purchase agreements.

Realtors however are concerned about the drop in current listings and new listings in October. They said that the level of listings could signal a slowdown of the housing market. Active house listings decreased by 22 percent while new listings fell by nearly 11 percent.

Rae Jean Malone, head of the Saint Paul Area Association of Realtors, said that buyers have been buying up bank foreclosures for sale and other properties in listings because they were rushing to beat the scheduled expiration of the federal tax credit and to take advantage of lower mortgage rates.

Other realtors added that the expansion and extension of the federal tax credit scheme would further improve home sales in the coming months.

Malone said that home appraisals which considered foreclosure sales helped pushed prices down. Sales prices for non-foreclosed traditional homes dropped by 13.2 percent in October on a year-over-year basis while prices for foreclosed homes and distressed houses fell by 4.4 percent.

The large number of prospective home buyers looking for homes in the price range of $200,000 to $250,000 also helped pushed prices down, as sellers adjusted their prices to be able to sell. Homes for sale stayed on the market for fewer days compared to last year, with units staying in listings for 128 days in October, down from 141 days in October last year.

As the number of purchase offers increased, the discount rate for homes also decreased in October. Homes were sold for nearly 95 percent of their initial asking price, an increase from 91.3 percent in October 2008.

Additionally, sales of bank foreclosures for sale continued to surpass short sales, as banks took a longer time in deciding whether to accept purchase bids that were much lower than the mortgage amounts.

According to industry experts, the $2 million Neighborhood Stabilization Program (NSP) has been helping not only prospective homebuyers in Fort Worth but also in other cities across the United States. The program also is one of the many initiatives of the Obama Administration to control the spread of foreclosures and prevent them from becoming blights to neighborhoods and pulling down housing prices and values.

Under the program, the city provided about $21,521 for the repair of Fort Worth foreclosures for sale. The repairs include flooring, exterior paint, fencing and windows. Some of the properties identified under the program have been vacant for almost six months before they found their new owners.

Experts said that a growing number of neighborhoods in the city have been severely affected by the foreclosure crisis and the economic downturn. And with the increasing unemployment rate, more homeowners are expected to go into foreclosures.

In 2008, nearly $3.9 billion federal funds were awarded to various states, cities and towns under the NSP which was launched under the Housing and Economic Recovery Act. The city of Fort Worth was awarded nearly $6 million NSP funds to help address the growing foreclosure problem in the area and to prevent foreclosed houses from becoming blights to neighborhoods.

Furthermore, about 6 families in Arlington were given help under the NSP to purchase houses. As of now, an additional 14 families have been given the chance to have their own homes. The city government has been intensifying its efforts to contain the growing number of foreclosure houses in east central and southeast Arlington.

The city government plans to help more families buy foreclosed homes in December if it will receive the almost $5 million additional funding under the NSP.

Statewide, foreclosure filings from July to September rose by 11 percent compared with the same period last year. In September alone, an increase of 17 percent or 13,216 foreclosure houses were posted. The steady increase in foreclosure activity in the third quarter is expected to result to more foreclosures in the coming months.

According to Christopher Thornberg, founder of Los Angeles real estate consulting firm Beacon Economics, around 15 percent of mortgage loans in California are in default, but banks have been reluctant in proceeding with foreclosures because of the expected adverse effects of another wave of foreclosures on price levels and on the whole housing sector, which has been showing signs of recovery.

Thornberg said that eventually, these distressed properties will enter the market, indicating the reality that the current rise in home prices and sales are artificial.

Los Angeles home prices increased in October, with the price median rising from September by $5,000 to $340,000, according to data from HomeData. Total home sales dropped by around 1.2 percent, the second consecutive month that sales declined.

There are areas however in the county where home sales soared. In Palos Verdes, total sales shot up by 533 percent. Sales also soared in Signal Hill, Maywood, Exposition Park and Culver City.

Analysts in the area said that first time home buyers taking advantage of the federal tax credit and lower-priced Los Angeles foreclosures for sale contributed largely to the increased sales in these areas.

Robert Foster of Coldwell Banker in Los Angeles, said sales increases occurred in both the low-end and high-end of the housing sector. He added that there were substantial price increases in South Park and in Topanga.

Paul Habibi, real estate professor at the University of California in Los Angeles, affirmed Thornberg’s analysis that government policies are propping up the housing market. Habibi contended that the government will have to support the market for a longer time because of the unemployment situation.

So far, there are signs of home price improvements in Los Angeles and in other U.S. cities. As discussed in a recent report released by Standard & Poor’s, Los Angeles was among ten cities where house prices improved.

However, in a report released this week, the National Association of Realtors pointed out the decrease in prices of previously owned homes in 80 percent of the country’s metro areas in the third quarter. NAT cited short sales and foreclosure sales, which comprised almost one-third of all home sales during the quarter, as the key factors for the price declines.

In October, 64.5 percent of all home sales in Las Vegas were bank-owned foreclosed homes, a decrease from the 67-percent share in September. This still high percentage of foreclosure sales controlled the increase in the median sales price for all types of homes sold as the median price for bank-owned foreclosed homes in October was $116,900.

The median sales price for all types of homes in Las Vegas in October increased by only $1,100 to $139,100 from the September median of $138,000. Compared to the August median price of $135,500, the increase was bigger, but the median was still lower by almost 27 percent compared to September last year.

The realtor association also reported that the overall sales of single-family houses increased in October. The increase rejuvenated real estate professionals who are hoping that the array of positive signs arising over the past weeks such as increase in home sales, stability of home prices and reduction in housing inventory are real indicators of a significant recovery from Las Vegas foreclosures for sale.

The realtor association said that sales of single-family homes climbed up by 30 percent to 3,535 units in October, compared to sales in October last year. Sales also marked more than 5 percent of increase from total sales in September. The number of days that nearly 75 percent of homes stayed on the market also dropped to less than 2 months.

Rick Shelton, incoming president of the realtor association, predicted that home sales and home prices will continue to improve in the coming months because of the expansion and extension of the first time home buyer tax credit.

Additionally, the inventory as of October remained at almost 21,000 units, with most of the units already listed as pending sales. The number of units without purchase offers total 8,075.

Sue Naumann, current president of the realtor organization, also predicted that the expansion and extension of the tax credit initiative will push up home sales.

Naumann also explained that the sales figures presented were based on data from the Multiple Listing Service and did not include sales by home builders, owners and other sales not handled by realtors.