Some states across the country are seeing signs of a reversal of the economic downturn. This would mean many things, including the possibility that there would be a turn for the better in residential real estate, and that foreclosures would be of a decreasing occurrence. Unfortunately, according to a report recently released by Wells Fargo, this may not be the case in Pennsylvania.
According to the special commentary, Wells Fargo believes this will be true because the state has seen a minimal amount of employment growth, and the demographics have been weak. For example, the state’s real GDP only saw an increase of 0.7 percent in 2013. That is only half of the average increase experienced across the nation. In addition, the nonfarm payrolls are only up 1 percent, in comparison to the 1.8 percent seen across the nation.
In Pennsylvania, home sales are down a little over 5 percent since last year, and new home selling prices are only up 2.7 percent, in comparison to the national average of 7.5 percent. Moreover, the homes that are selling in Pennsylvania are selling at a median price that is more than 20 percent less than the national average. According to Wells Fargo, this could all be a result of the state’s higher rate of foreclosure and mortgage delinquency.
The process of buying a home or selling a home can be complicated for both buyers and sellers. With the Pennsylvania housing market in flux, a seller may want to get rid of their house, but be underwater on their mortgage. Further, while a buyer may want to obtain a house, the buyer may be worried they will overextend themselves financially.
In these types of situations, it is sometimes helpful to find an experienced legal representative that can represent either a buyer or a seller. A legal team can handle items, such as a title search, negotiating and drafting sales contracts, examining deeds and so much more. With the housing market obviously is still a very uneasy state, it may provide buyers and sellers more peace of mind to hire an attorney to help them through the process.
Source: DS News, “Pennsylvania Not Quite Ready for Housing Market Rebound,” Brian Honea, Aug. 27, 2014