Wilkes Barre housing prices a big draw for outsiders......
Local Housing Market Among Nation’s Best
03/09/2008
By Denise Allabaugh
Staff Writer
WILKES-BARRE — Evaristo Tlatenchi moved from Brooklyn, N.Y., and bought a home in Wilkes-Barre for three reasons: an affordable price, less crime and a good job.
Tlatenchi, who is originally from Mexico, bought a home on Dana Street for $42,000, where he lives with his wife, Orlanda, and three children, Amy, 11, Jonathan, 9 and Jovan, 7. The same home in New York would have cost $250,000, he said. He is now working as a contractor renovating a home on Poplar Street.
He is one of a growing number of people moving to Wilkes-Barre from other parts of Pennsylvania, parts of New York and New Jersey. They are migrating here because housing is affordable and more available, according to a study completed by the Joint Urban Studies Center in Wilkes-Barre.
Teri Ooms, executive director of the Joint Urban Studies Center, said two major groups of people are migrating to Wilkes-Barre. People with low to moderate incomes are moving here because they can afford older single-family homes and can partner with family members to buy a duplex or rent.
People with middle to upper middle incomes can buy a home here for $300,000 to $500,000 that would cost $1 million in larger metropolitan areas. Many of those people prefer to buy lower cost homes here and commute to their higher-paying jobs outside the area.
The study shows the population of people migrating to Luzerne County from other parts of Pennsylvania and different parts of New Jersey and New York has increased by 225 residents from 2005 to 2006.
“We see this as the beginning of a long-term trend,” Ooms said. “Real estate here is a very hot commodity.”
The Wilkes-Barre/Scranton area was ranked fourth among the among the most affordable housing markets in the nation in a study by the National Association of Home Builders and Wells Fargo.
While home sales are declining in other local areas and nationally, home sales have risen slightly in Wilkes-Barre.
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According to the Greater Wilkes-Barre Association of Realtors and the Greater Hazleton Association of Realtors, home sales in Wilkes-Barre increased 2 percent with 363 homes sold in 2006 and 372 homes in 2007. Over the same period, home sales decreased 20 percent in the Back Mountain, 23 percent in Hazleton, 18 percent in Mountain Top, 4 percent in Nanticoke and 15 percent in Pittston. Nationwide, the number of homes sold decreased 12.8 percent and the average sale price dropped 1.4 percent.
“We don’t follow the national trends,” said Wilkes-Barre realtor Eileen Melone. “As long as you have a good credit rating and steady employment, you should be able to get a mortgage. It’s very easy for most people with good credit to be able to afford a home in the $80,000 to $150,000 price range.”
Ron Viglone, a realtor with Marilyn K. Snyder Real Estate in Wilkes-Barre, said home sales are on the rise in Wilkes-Barre because the prices here are below other market levels.
“I’ve shown homes between $30,000 and $40,000 in Wilkes-Barre that would cost $70,000 to $80,000 in the Back Mountain or Mountain Top,” Viglone said.
Wilkes-Barre Mayor Tom Leighton said people who have never looked at buying homes in the city before are now buying homes there not only because they are affordable, but also because the neighborhoods are being cleaned up and the city provides good services.
“People are starting to realize now that Wilkes-Barre is undergoing revitalization and they could get a good bargain here,” Leighton said.
Leighton is familiar with the local real estate market. He is president of C.A. Leighton Real Estate Co., but he says he does not conduct real estate business while he is working as mayor.
The median price of homes sold in Wilkes-Barre increased .09 percent from 2006 to 2007 from $67,621 to $67,680, which Leighton says is a positive sign.
“Historically, the city was experiencing housing prices going down,” Leighton said. “This is probably the first time in many years that we had an increase in prices.”
More homes continue to be built in Wilkes-Barre. Two homes are being constructed on Mill Street. Twenty-five homes were built in the Pine Ridge housing development in the Parsons section of the city and 23 were sold. Six townhouses also were constructed there and two are occupied. Starting prices for the homes are $250,000, Leighton said.
Jim Graham, real estate with Lewith and Freeman, has been selling homes in the Pine Ridge development and finds there is quite a bit of interest. He sold the third townhouse there Friday. Lots there are being sold for $40,000 to $50,000, he said. He thinks the demand is higher now because interest rates are lower. He saw one bank advertise a 4.75 interest rate on a 15-year loan. Most rates are between 5 and 6 percent now, he said.
“That’s really good. I haven’t see the rates that low in the last 10 years,” Graham said. “Most people think it’s a good time to buy because the mortgage rates are excellent. They can actually spend a little more now that the rates are down. They can get more house for their money. They can move up to a better grade because of the lower rates.”
Dina Carone, her husband Stephen, and her 2-year-old daughter Gianna moved into the Pine Ridge development after determining that was an ideal location.
Carone formerly lived in Pittston and in a Plains Township townhouse before moving into her dream home in Wilkes-Barre.
“It’s quiet and I like to be close to everything,” Carone said.
The average time that a home in Wilkes-Barre is on the market now is about three to four months, Graham said, but that varies depending on the home.
Home sales have been on the rise in the downtown as well as the neighborhoods, said Larry Newman, vice president of community and economic development for the Greater Wilkes-Barre Chamber of Business and Industry.
“As downtown Wilkes-Barre continues to be recognized more and more as a location of choice for those who want the walk-to-everything lifestyle and who enjoy the amenities downtown Wilkes-Barre offers, you’re going to see noticeable numbers of people continuing to choose to live downtown,” Newman said.
Among the downtown homes, four homes on South Franklin Street renovated by the nonprofit community development corporation CityVest were sold for more than $200,000.
CityVest bought the homes at 285-287, 291 and 293 S. Franklin St. in the downtown’s historic district in 2001, renovated them and sold them quickly, executive director Alex Rogers said.
“All four properties are back on the tax rolls and are occupied by people who could live anywhere in the Wyoming Valley,” Rogers said. “There’s a very positive buzz now about buying residential property downtown and living there.”
Shelley Pearce, director of Wilkes University Conservatory and chair of the Cultural Council of Luzerne County, bought the first home. She enjoys the “cosmopolitan lifestyle” that living downtown offers. She likes that she can walk to work and to cultural events.
“I think the external perception of Wilkes-Barre is way off base,” Pearce said. “I never felt fearful once. I really enjoy living here.”
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