Naja and I are involved in the WSBA and are often at various events.  Always one for conversation, I asked Naja Brown of Northwood Realty her take on this burning question.

Here is my perspective on the current state of real estate in the Pittsburgh Region and the stimulus package.

Because places like Buffalo, Cleveland and Pittsburgh did not see the wild price rises and real estate speculation as other markets, our housing market is relatively stable. In essence the crummy stagnant economies in these places did not inflate and thus did not burst. The trend was also aided by relatively conservative local banks which for the most part did not partake in the crazy lending practices. Home prices actually eked out a tiny gain last year and foreclosures decreased dramatically.

The Post Gazette reports:

Residential foreclosures in the Pittsburgh area dropped for the second year in a row in 2008, a 6.6 percent decline from 2007…
The average home price locally climbed 1.2 percent from $148,828 in 2007 to $150,588 in 2008.

This is better news than anyone else in the country is getting right now. Too bad consumers are too scared by the national news about the economy and real estate values to actually try for first time homeownership. Too bad sellers are to scare to sell, even though it would cost less and they could buy their next home for less. Too bad they don’t realize that now is the time to invest.

Our conservative local bankers have gone into lock down on shaky buyers and questionable borrowers. Don’t get me wrong, they will still fund a loan to a customer with great credit, at least 5% down and stable long term employment, with a whole lot of burning hoops to jump thru.

The stimulus package being set up by the government is intended to get the banks to loan more money and get consumers to spend it. The plan is designed to speed up the recovery of the system. But, if people are too afraid to spend any money and instead put it in their mattress, then the plan will not work. If people cannot reawaken to the value of buying and selling real estate, then the plan will not work. The plan is designed to renew people’s confidence in the US Government and the economy’s resilience. We the people must be able to look past “the sky is falling” new reports and really see what is and needs to be happening.

The real estate industry in cyclical! It always comes back around.   The stimulus package is supposed to speed up the process because the US economy depends so heavily upon it.

Naja Brown ~NORTHWOOD REALTY SERVICES
Real Estate Marketing Specialist
office #412-831-0100 x 243
email to najabrown@northwood.com

http://www.pghhomesbynaja.com