The resilience of the Pennsylvania real estate market is being tested with across the board declines in housing values. Yet there is reason to believe that, with its history of rebounding from adversity and factors that give Pennsylvania real estate special appeal, another comeback could be on the horizon. For more on this, see the following article from Housing Predictor.
Battling the downturn in the economy when the steel business was exported overseas taught Pennsylvania a lot about bouncing back, but there’s no clinging on to its rusty past.
Housing values have declined in every market in the state, but better times are showing signs of a revival in Pennsylvania, which just may be holding up better than any other state through the financial crisis.
Investors have arrived to pick-up deals in Pittsburgh, where the first time buyers’ federal tax credit is also aiding the marketplace. Pittsburgh has the region’s strongest housing market and one of the lowest unemployment rates in the nation. Housing prices are still above their decade old levels, although values are declining.
Retirees flocked to the area because of its affordability. Pittsburgh’s older population is providing a sort of stability for the marketplace not seen in many regions of the country, and one of the lowest foreclosure rates. The average price of a home is forecast to deflate a lesser 6.7% in 2009.
Local Pennsylvania Housing Markets at a Glance
Conversely, Allentown rode a wave of prosperity buoyed by the booming real estate market. But the tables have turned and the casino that was built on land that was used for a steel factory isn’t seeing much action these days. As the economy weakens and unemployment increases, Allentown is feeling the impact of the nation’s credit crunch. The construction of new homes in the area has come to a quiet standstill with Allentown forecast to see average home prices deflate 8.1% in 2009.
In Philadelphia, the eight county metropolitan areas that make up the Philadelphia metro complex saw more than its share of growth during the boom, and the housing market held up better than most. But sluggish home sales towards the end of the year will send the market into a sort of idle as consumers await more government action to correct falling home prices. The fall out is still, however, projected to be less severe in the City of Brotherly Love with forecast average housing deflation of just 7.2% by years end.
However, the impact of growing foreclosures will have a more serious impact in Philly in coming months and years as homeowners with adjustable rate mortgages are unable to pay the higher cost of keeping their homes. The foreclosure epidemic will also have a growing influence on home values in Lancaster, where unemployment is rising in just about all sectors of the economy.
Home sales were in the doldrums in Lancaster until the government’s first time buyer’s tax credit helped to boost the market, which should see more sales through the year as the Obama administration’s housing rescue plan makes inroads at helping the housing market’s recovery. However, prices are projected to deflate and are forecast to decline 6.9% by Housing Predictor in 2009. Lower home prices are getting more buyers off the fence and into new homes.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate forecasting site.