Multi Family Foreclosures for Sale and Other Homes Thriving in PA

by on States

Several areas of Pennsylvania are recording a surge in home buying and selling activities, including those related to multi family foreclosures for sale. The increase in activities has led to rising housing unit prices and a stabilizing residential property market.

Foreclosures for sale in Philadelphia and in Pittsburgh, and also non-foreclosed residences, are getting a lot of interest from investors and regular homebuyers. However, Pittsburgh has some advantage over other metro areas in the state when it comes to housing; the city does not have a very high number of foreclosed properties compared with other metro regions. This has protected the prices of housing structures from drastic fluctuations and is now helping the area's housing industry recover faster than the national market.

Unlike other U.S. markets, the state's housing industry did not overbuild during the real estate boom, which resulted in the area having a relatively lower number of Pennsylvania foreclosures. In Pittsburgh, one household out of every 117 units was under some stage of foreclosure last year, a ratio that is definitely healthier than the national average of one per 45 households. Local economists have also stated that Pittsburgh has benefited from its diverse economic and labor base.

Despite also having its share of single family and multi family foreclosures for sale, Pittsburgh's housing prices remained strong. Data for December 2010 showed that median prices of homes sold in the city surged by 7.8% when compared with December 2009. When compared with December 2008, the increase was 17%. Realtors stated that, during an economic downturn, areas with flat or rising home prices are the ones with the healthiest conditions.

Another reason cited by realtors for the rise in residential property prices is the higher number of expensive dwellings being sold in the metro area as compared to the number of low-priced bank foreclosed homes for sale. During the month of December 2010, a total of 44 houses priced at least half a million dollars were sold in Pittsburgh, representing a surge of 33% from December 2008.

Housing industry analysts stated that, although there are a number of sales transactions involving distressed houses and multi family foreclosures for sale, a big percentage of buyers is going for non-foreclosed and even luxury homes, which effectively pushed the prices of residences up.