Sales of new, existing homes fall 26 percent in W.Pa.

Sales of new, existing homes fall 26 percent in W.Pa. By Sam Spatter FOR THE PITTSBURGH TRIBUNE-REVIEW Thursday, November 18, 2010   Sales of new and existing homes fell 26.3 percent during October in the Pittsburgh region compared to a year ago, according to a report released Wednesday. There were 1,852 home sales last month versus 2,513 a year ago in the five-county region included in the report from RealStats, a South Side-based real estate information company. Home sales in the Pittsburgh region hit a 17-year low this summer, RealStats Vice President Daniel Murrer said in a report last month. “What we are experiencing is the fallout from the strong sales activity in April, May and June, when buyers — who otherwise may have waited until later this year — jumped into the market to benefit from the federal government’s tax credit program,” said Tom Hosack, CEO of Northwood Realty Services. In September and October, potential buyers also were concerned about the nation’s economy, the job market and the November elections, he said. “What we are seeing in November is a pickup in new sales, which haven’t closed yet but indicate the market may be regaining some of its steam,” Hosack said. “Even the higher-priced market is showing signs of coming back.” Sales figures are for sales of $10,000 and higher in Allegheny, Beaver, Butler, Washington and Westmoreland counties. The RealStats report showed that sales in October were down 9 percent from September, which had sales of 2,046 units. In September 2009, there were 2,336 homes sold, according to the report. Last month’s home sales included 1,713 existing units and 139 newly built homes. A year ago, existing house sales reached 2,274 in October, and new home sales were 239, RealStats said. RealStats figures showed that despite the drop in sales, the average price for both new and existing housing increased in October. The average for existing home prices in October reached $144,103, up from $134,941 for the same month a year ago. New houses sold for an average of $304,841 last month, compared with $283,022 for the same month last year. Nationally, applications for mortgages to buy and to refinance homes dropped last week as mortgage rates pulled away from historic lows. The Mortgage Bankers Association said overall applications fell 14.4 percent from a week earlier. Applications to refinance tumbled 16.5 percent from the week earlier, while those taken out to purchase homes fell 5 percent last week.  Rates had been at or near their lowest levels in decades since spring. However, low rates have done little to boost home sales, which have faltered after the expiration of federal tax credits at the end of April. The Commerce Department reported yesterday that construction of new homes sank in October to the lowest level in 18 months. Housing starts dropped 11.7 percent to an annualized rate of 519,000 last month. The last time starts were that low was in April 2009. Sam Spatter can be reached at sspatter@tribweb.com or 412-320-7843. Images and text copyright © 2010 by Trib Total Media, Inc. Reproduction or reuse prohibited without written consent.