There were 2,426 homes sold during May compared with 3,089 for the same month a year ago, with each of five counties showing a decline, according to a report from RealStats, a real estate information company on the South Side.
The decline was the steepest yet this year, said RealStats, which tracks sales of homes sold for $10,000 and more through deed recordings in Allegheny, Beaver, Butler, Washington and Westmoreland counties. It exceeded drops of 19.1 percent in March and 18.4 percent in January.
Despite the drop in sales, the median price of homes sold in the region rose again -- by 4.7 percent to $122,000 in May. That continued a persistent pattern here. The median price, which is the point at which half the homes sold for more and half for less, declined by 1.8 percent in April, but that was only the second time since 2005 that home values did not appreciate in the region.
"May's numbers show that the current market requires greater patience on the part of sellers, but that patience is paying off in the form of higher prices," said Daniel Murrer, vice president of RealSTATs.
One explanation for what Murrer calls the "paradox" between sales and prices could be the increased difficulty some buyers may be experiencing securing loans to buy homes, said Robert Dye, senior economist with PNC Financial Services Group Inc.
"It could be a shift in the composition of the market," he said.
Subprime loans used by many lower-income buyers have virtually disappeared and low-documentation loans (those requiring no proof of income and other indications of credit worthiness) are have been severely restricted in the wake of the national mortgage and credit crisis.
Thus, people buying homes could be stronger buyers who can afford more expensive properties.
The overall drop in sales took the total value of homes sold in the region to $375.7 million for May, down from sales volume of $453.1 million in May 2007, Murrer said.
Sales totals for Allegheny County declined to 1,525 in May, a drop of 20.1 percent from 1,908 a year ago, RealStats figures show.
Other county totals show Beaver County with 166, down 23.9 percent from 218; Butler County, with 178, down 24.9 percent from 237; Washington, with 203, down 24.8 percent from 270; and Westmoreland County, with 354, down 22.4 percent from 456.
Rates on 30-year mortgages rose this week to the highest level in nearly nine months, Freddie Mac reported Thursday. Rates on 30-year fixed-rate mortgages averaged 6.42, up sharply from 6.32 last week, the mortgage company said.
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