Allentown Mayor Ed Pawlowski froze all nonessential spending this week to help plug a projected $1.9 million hole in the city’s budget. The city is on pace to see $1.5 million less than projected revenues from real estate transfer fees. The slowing housing market is affecting transfer tax revenue in all municipalities in the Lehigh Valley. REALTORS® have argued for years that the transfer tax is an unstable source of revenue. LVAR will continue to advocate against the transfer tax.
 
Source: The Morning Call, 9.3.08

Comparison of Activity from June 2008 to July 2008

List Price to Sold Price Ratio:
The average sale price compared to list price for residential properties sold  in the Lehigh Valley during the month of July 2008 is 97%, which remained the same since April 2008.

New Construction:
For newly constructed homes with 4 bedrooms and 2 1/2 baths the average sale price is $421,000. The median sales price reported is $401,000. This information is based on 7 new construction properties sold during the month of July. During the month of June 2008 the average sale price was recorded at $473,000, the median was recorded at $423,000. The Average Sales price is obtained by dividing the total number of newly constructed sales into the total sales dollars of newly constructed homes. The Median Sales price indicates the mid-point of the range of sales-half of the homes sell for less, while half of the homes sell for more.

Lehigh Valley Real Estate Statistics:
The statistics presented in Market Update are compiled each month based on the figures generated from the Lehigh Valley Association of REALTORS® Multiple Listing Service. Average sales prices and median prices fluctuate monthly depending upon the number of sales at the high or low end of the price range. The year-to-date numbers will generally remain more constant. The Lehigh Valley Association of REALTORS®, “The Voice for Real Estate in the Lehigh Valley”, represents 2636 real estate professionals involved in all
aspects of the real estate industry.

Comparison of Activity from July 2007 to July 2008:

Number of Sales – During July 2008, 524 sales were reported, down approximately 24.5% from July 2007 at 694.

Average Sales Price – The average sales price for July 2008 was recorded at $236,000, down approximately 4.1% from July 2007 when the average sales price of the month was recorded at $246,000. The Average Sales price is obtained by dividing the number of sales into the total sales dollars.

Median Sales Price – The Median Sales Price for July 2008 was recorded at $207,000 which is a decrease compared to July 2007 with a median of $215,000. The Median indicates the mid-point of the range of prices-half the homes sell for less, while half the homes sell for more.

Average Market Time-The average time on the market for properties sold  in the Lehigh Valley during July 2008 was 65 days, an increase from 51 days in July 2007.

List Price to Sold Price Ratio:
The average sale price compared to list price for residential properties sold in the Lehigh Valley during the month of July 2008 is 97%, which remained the same compared to July 2007 at 97%.

In a recent Morning Call letter to the editor, LVAR (Lehigh Valley Association of Realtors) expressed  frustration with government officials continued reliance on the real estate transfer tax (PA recieve 2% on every Lehigh Valley Real Estate Transaction, buyer and seller each pay 1%).  Municipalities that were once booming with residential development are seeing the effects of a slow housing market, namely in the loss of income from estate transfer tax, which is shared by municipalities, school districts, and the state.  Collections REALTORS® have argued for years that local governments should not rely on the transfer tax for revenue because it is unstable and cyclical. 

source: Lehigh Valley Association of Realtors

The U.S. Senate passed a bipartisan mortgage rescue bill last Friday that allows the Federal Housing Administration to refinance troubled mortgages – even those that are under water – as long as banks agree to take a loss. The program would allow the FHA to help as many as 400,000 home owners. Now the bill goes to a bipartisan committee in the House for revision. The measure includes higher limits for FHA loans and creates a new regulator for Fannie Mae and Freddie Mac. It also would provide $14.5 billion in housing tax breaks, including a credit of up to $8,000 for first-time homebuyers.  Thanks to those Lehigh Valley Realtors who responded to the Call to Action.

source: Lehigh Valley Association of Realtors

The victory for REALTOR® and real estate consumers was short lived as Governor Ed Rendell vetoed legislation aimed at protecting consumers from spot reassessments.  Despite the overwhelming bipartisan support in both houses of the legislature.  LVAR (Lehigh Valley Association of Realtors) issued a press release expressing our disappointment with the Governor’s decision.  LVAR will continue to follow this issue closely and work with our legislators to address this issue when they reconvene in the fall. 

source: Lehigh Valley Association of Realtors

Original Article:

Spot Assessments will cease
In a huge victory for Lehigh Valley REALTORS® and home buyers, the General Assembly approved legislation on July 4 to stop school districts from appealing property tax assessments on homes that recently sold. Current law has created a loop hole for school districts to legally appeal assessments without technically conducting spot reassessment. Once enacted, Senate Bill 1247 (Rhoades, R-Schuylkill) and House Bill 1438 (Seip, D-Schuylkill) will close this loop hole. LVAR and PAR offered support for the legislation, which was opposed by the PA School Boards Association. Senate Bill 1247 passed with only two negative votes in the Senate and seven in the House; House Bill 1438 passed with three negative votes in the House and four in the Senate. The legislation is pending a signature by the Governor before it becomes law.

Be Sure To Let The Governor Know How You Feel!