Home sales show hopeful signs
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The number of homes placed under agreement in southwestern Pennsylvania jumped 16 percent last month compared to December 2010, according to West Penn Multi-List.
Meanwhile, the average rate on 30-year and 15-year mortgages continues to hover at record low rates, providing more hope that the real estate market will continue to improve.
Sales records show 2,211 homes in the Pittsburgh region were placed under contract last month versus 1,906 homes that were either sold or were in the sales pipeline in December 2010.
"This positive increase in home sales is very encouraging," said Ron Croushore, president of West Penn Multi-List.
Washington County, where the number of December home sales rose from 141 to 212, had the highest percentage spike at 50 percent. With 274 homes sold last month compared to 207 in December 2010, Westmoreland County had a 32 percent increase.
Allegheny County homes sales rose from 987 in December 2010 to 1,105 homes sold last month for a 12 percent increase. Beaver County home sales rose from 127 to 151 for a 19 percent improvement.
Butler County accounted for the lowest increase of all with 165 homes sold versus 164 a year earlier.
For those who can afford to buy or refinance a home, the current low interest rates could be encouraging. Mortgage giant Freddie Mac reported the average rate on the 30-year mortgage fell to 3.91 percent this week, while the average rate on the 15-year loan dropped to 3.23 percent.
But low rates so far have not had as big an impact as policymakers had hoped. Mortgage applications have fallen slightly in recent weeks, according to the Mortgage Bankers Association.
Nationwide, previously occupied homes are selling just slightly ahead of 2010's dismal rate. When the data from new home sales in 2011 is compiled, it will likely be the worst year on record going back half a century.
First Published January 6, 2012 12:00 am
