Philadelphia Foreclosure Homes Still Dominate the Market
September 11th, 2009 by 
sharon
Strong buyers’ demand for cheap properties has made Philadelphia foreclosure homes still a force to reckon with in the Pennsylvania housing market. This is part of the findings of the Federal Reserve’s survey of businesses across the country. The survey showed that economic activity has been improving or improving in many regions.
But economists warned that the economic recovery is fragile and will remain on its path only if consumers would start going out and spend more money. However, the increasing unemployment rate has made consumers cautious and could mean a slow economic recovery in the coming months.
Eleven regions covered by the government survey showed economic activity to be stable or showing signs of stabilization. St. Louis, Missouri is the only region to report a moderate economic decline.
Businesses in majority of regions surveyed said that they were positive but cautious about the future economy. According to analysts, the country’s economy is growing in the third quarter ended September 30 with an annual growth rate of 3 to 4 percent. They said that the growth was due to businesses spending more.
The housing market is still weak, according to the report. Demand for Philadelphia foreclosure homes is still on the rise, also with sales for expensive homes. Industry experts regard this trend as a sign of improvement.
First-time homebuyers who take advantage of the federal tax credit of $8,000 were credited for the increase in home sales in several regions. Home prices continue to drop in many areas in the country, except in New York and Dallas, Texas regions where prices were reportedly solidifying.
Market data for August showed that the number of homeowners at risk of losing their properties to foreclosures has declined. Industry experts gave the credit to this decline to lenders and banks’ efforts to help distressed borrowers.
Meanwhile, the number of foreclosure filings remained 18 percent higher compared with the previous year. Filings include notices of default, auctions and bank foreclosures.
The survey noted some trends which did not bode well for the economy. For one, demand for commercial real estate remained weak while the construction activity declined in regions across the country.
And the most alarming of all, the country’s unemployment rate continues to climb, reaching 9.7 percent last month and expected to rise to 10 percent before the end of this year. Many analysts predict that the economy will slow down through the rest of 2009 well into 2010.
