Valley home sales up but prices down **Record snowfall dampened February sales, but sellers are optimistic about the market.
Morning Call, The (Allentown,
PA) - Tuesday, March 23, 2010
Author: Spencer Soper
OF THE MORNING CALL
Economists expect the trend of increasing sales and falling
prices to continue until prices bottom out in the second
half of the year.
Lehigh Valley home sales increased marginally from a year ago and average prices continued to slide downward despite an extended and expanded government tax credit intended to prop up the real estate market.
There were 261 homes sold in February in Lehigh and Northampton counties, up 1.6 percent from the same month a year earlier, according to Prudential Patt, White Real Estate's monthly HomExpert Market Report.
The average price of homes sold in February was $165,000, down 1.8 percent from a year ago and down 5 percent from January, according to the report.
Bad weather put a drag on home sales in both January and February –– which are traditionally slow real estate months –– preventing a significant boost from the tax credit, said Brad Patt, senior vice president of Prudential Patt, White.
More than 40 inches of snow fell in the Lehigh Valley in February, the highest amount on record in a single month.
"I don't think people are quick to go out house-hunting when there's two feet of snow on the ground," Patt said.
Patt said he is optimistic the market will improve in March and April as the weather warms and the tax credit deadline draws near.
The home buyer tax credit, which was supposed to expire at the end of last November, was extended and expanded to include existing homeowners.
Now, buyers who have owned their current homes for at least five years are eligible for tax credits of up to $6,500 if they buy a new primary residence. First-time home buyers, defined as anyone who hasn't owned a home in the last three years, get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30 and close by June 30.
Economists expect the trend of increasing sales and falling prices to continue until prices bottom out in the second half of the year. Putting downward pressure on the market are high joblessness and a large number of foreclosures.
Loren Keim , president of Century 21 Keim Realtors in Allentown, said foreclosed properties and "short sales" in which mortgage holders agree to transfer the property to a buyer for less than is owed continue to pull the market downward.
And few high-priced homes are selling, which brings average prices down, Keim said.
"On the bright side, again, sales are improving and I really believe we can expect to see them improve along with consumer confidence this year," Keim said. "The tax credits expire if buyers don't put a home under agreement by the end of April, so we expect to see a very strong March and April."
spencer.soper@mcall.com
Section: News
Page: A14
Lehigh Valley home sales increased marginally from a year ago and average prices continued to slide downward despite an extended and expanded government tax credit intended to prop up the real estate market.
There were 261 homes sold in February in Lehigh and Northampton counties, up 1.6 percent from the same month a year earlier, according to Prudential Patt, White Real Estate's monthly HomExpert Market Report.
The average price of homes sold in February was $165,000, down 1.8 percent from a year ago and down 5 percent from January, according to the report.
Bad weather put a drag on home sales in both January and February –– which are traditionally slow real estate months –– preventing a significant boost from the tax credit, said Brad Patt, senior vice president of Prudential Patt, White.
More than 40 inches of snow fell in the Lehigh Valley in February, the highest amount on record in a single month.
"I don't think people are quick to go out house-hunting when there's two feet of snow on the ground," Patt said.
Patt said he is optimistic the market will improve in March and April as the weather warms and the tax credit deadline draws near.
The home buyer tax credit, which was supposed to expire at the end of last November, was extended and expanded to include existing homeowners.
Now, buyers who have owned their current homes for at least five years are eligible for tax credits of up to $6,500 if they buy a new primary residence. First-time home buyers, defined as anyone who hasn't owned a home in the last three years, get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30 and close by June 30.
Economists expect the trend of increasing sales and falling prices to continue until prices bottom out in the second half of the year. Putting downward pressure on the market are high joblessness and a large number of foreclosures.
Loren Keim , president of Century 21 Keim Realtors in Allentown, said foreclosed properties and "short sales" in which mortgage holders agree to transfer the property to a buyer for less than is owed continue to pull the market downward.
And few high-priced homes are selling, which brings average prices down, Keim said.
"On the bright side, again, sales are improving and I really believe we can expect to see them improve along with consumer confidence this year," Keim said. "The tax credits expire if buyers don't put a home under agreement by the end of April, so we expect to see a very strong March and April."
spencer.soper@mcall.com
Section: News
Page: A14
