Fewer local homes sold in December
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The number of homes sold in the Pittsburgh region dropped 15.1 percent in December, compared with the same month a year earlier when a special government homebuying tax credit helped spur sales.
But compared to December 2008, when there was no tax credit to spark the market, the number of homes sold rose 3.4 percent last month, according to a report released Tuesday by RealSTATs, a local real estate information service.
For the past few months, industry observers have noted that the first-time homebuyer tax credit was making sales comparisons difficult. The credit, originally set to expire in 2009, was extended into 2010 and helped encourage a number of people to venture into the home market.
Nationally, economists are watching the home market closely for signs that it will start to regain strength and feed the recovery. The National Association of Home Builders on Tuesday reported that builder confidence in the market for new single-family homes remained unchanged for the third month in a row, as limited construction financing and other issues continued to be a drag on sales.
Meanwhile, the overall real estate market for the southwestern Pennsylvania region that includes Allegheny, Butler, Beaver, Washington and Westmoreland counties appeared to hold up pretty well over the two-year period between December 2008 to December 2010.
Average home prices in the five-county region rose 3.9 percent to $152,999 during the period between December 2009 and December 2010, but they were up even more -- 11.6 percent -- when compared to December 2008. The meltdown in the nation's financial markets hit in the fall of 2008.
The total dollar amount spent on home sales in the region fell 11.8 percent to $285 million last month when compared with December 2009 but rose 15.4 percent when compared to December 2008.
Looking specifically at the existing homes market, which accounts for the bulk of sales in the region, the average price rose 14.8 percent over the two-year period, compared with just 1.8 percent from December 2009. The median price rose 19.6 percent over the two years, compared to 4.8 percent from December 2009.
That rosy picture did not play out evenly across the region over the two-year period. RealSTATs reported the median price of an existing home fell in Butler and Westmoreland counties, held steady in Beaver County and rose 6.1 percent in Washington County.
In Allegheny County, the median price for an existing home rose 23.7 percent, and the average price was up 23.9 percent.
First Published January 19, 2011 12:00 am
