Tuesday, August 26, 2008
Pittsburgh home sales declined by 31 percent.
associated press
Homes sales tumbled in most big Northeastern cities last month — with only Passaic, N.J., showing a healthy jump in activity — while sales of distressed properties dragged down median prices in the entire region, according to two reports released Monday.
Sales of existing homes in the Northeast declined nearly 12 percent in July from a year ago, the National Association of Realtors said. The median price in the Northeast was $278,700, down almost 5 percent from July 2007.
That reflected the national trend: sales dropped more than 13 percent year-over-year, while the median price decreased 7.1 percent to $212,000.
But the Associated Press-Re/Max Monthly Housing Report, also released Monday, showed July sales dropped by at least 20 percent in five of the nine Northeast cities tracked.
The report analyzed home sales recorded by all real estate agents in those cities, regardless of company affiliation.
In the one bright spot, Passaic, sales jumped 38 percent over July last year. But the rapid sales pace could be stymied by glut of properties coming onto the market. The supply of unsold homes grew 32 percent to 10.6 months, and the median price slid 6 percent to $400,000.
In contrast, Pittsburgh posted the worst sales decline at 31 percent from July 2007. But prices offered a sliver of hope, dipping less than 1 percent to $132,000, the smallest drop in the region.
In Boston, the supply of homes for sale declined markedly, signaling a possible turnaround in the offing. Judy Moore, a local agent with Re/Max Landmark, said the condo market already is showing signs of life.
Overall, Boston home sales fell 12 percent in July and the median price decreased 8 percent to $355,000, according to the AP-Re/Max report. While Moore expects August sales and prices to decline year-over-year, she thinks the drop in both will be less severe than July’s.
Philadelphia real estate agent Ellen Renish of Continental Realty said the sales pace has improved over the last several months there, though in July were still 20 percent below July last year. But inventory remains high here, up about 6 percent from last year, or a 10 month supply, including homes in or close to foreclosure.
Foreclosures are also leaving their mark in Providence, R.I. Nearly one of five sales in the area were distressed sales, said Ron Phipps of Phipps Realty in Warwick, R.I. The discounted properties are weighing down the market, where the median price fell by 13 percent last month to $234,900, the AP-Re/Max report showed. Sales there also slipped 9 percent in July.
Foreclosures and short sales — where the bank accepts less than the value of the mortgage — also are adding to inventory. Maine foreclosure filings more than doubled in July from the previous year.
“(Foreclosures) are coming onto the market faster than you could keep up with them,” Perry said. “It’s an excellent time to buy. There are plenty of houses on the market, plenty to choose from.”