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Slow Market, High Hopes

By kevin | July 23, 2008

Pennsylvania has seen a slow real estate market for quite some time now. Larry Mellott, a builder in York County compares the market with the 1960 British invasion of Fab Four mopheads, when barbers lost business because people wanted to keep long hair. Few of them who were innovative and smart could still retain their business became “hair stylists” and charged more for their services. Similarly, this is the time for the builders to show innovation and do things differently for example building smaller homes. The National Association of home builders reports that there has been a huge decline in builder’s confidence. The sale of new homes has declined from 3 to 58 from January to June. Much of this can be attributed to increasing number of Pennsylvania foreclosure homes. Due to foreclosure homes in Pennsylvania, very few new homes are being built.

The effect of increasing number of foreclosure homes in Pennsylvania could be seen when Mount Joy Township Supervisors rejected a proposal to build 204 homes in Adams County from Keystone Custom Houses in Lancaster. It was reported that there was no longer a financial agreement between the developer and the landowner. Keystone had been delaying the construction plans for the past 9 months owing to the slow market.
Nationwide foreclosure homes have played a crucial role in declining the housing market.

The US Department of Commerce reported that the pace of new construction in the month of June was slow due to single family home builders. There has been a 64.5 decline since January 2006 when the building industry was at its peak. This is the slowest pace as reported by Department of Commerce in the past 17 years.

The National Association of Home Builders in an attempt to increase the home prices is urging the Congress to clear a housing stimulus bill that would provide a maximum of 8000 temporary tax credit.

Builders have experienced a decrease in the traffic of new buyers for past few months. Most of the citizens suffer from job instability, poor credit rating and other financial troubles which have led to a rising number of Pennsylvania foreclosure homes.

Related Posts:

• Pennsylvania and Michigan Threatened by Foreclosure Problems
• Pennsylvania Foreclosure Help Plan Set Up by Governor, Wife
• While Foreclosure Rise in January, Chicago Area Sees a Slowdown
• Colorado’s Infamous Weld County Forms Foreclosure Counseling Forum
• February Foreclosure Homes Up

Topics: Foreclosure Investing | Comments Off

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