It isn’t unusual to hear that Johnstown is heading in a different direction than the rest of the state when it comes to matters of the economy.
Cambria County typically posts the highest unemployment rate among the state’s 16 metropolitan areas. And when the housing market was booming across the state and nation, the local market remained largely unchanged.
According to a study released last week by the Keystone Research Center, Johnstown is once again moving in the opposite direction of the rest of the commonwealth’s metropolitan areas. But this time, that stark contrast is a positive for the region.
Keystone’s study showed that the Johnstown metro area is the only one in the state in which home values appreciated between the second quarter of last year and the same period of this year. Overall, home values across the state were down by an average of almost 7 percent, while Johnstown homes increased in value by more than 4 percent.
Mark Price, labor economist for Keystone Research who is responsible for the study, said he sees a number of factors responsible for the region’s real estate strength.
No boom, no bust
One of the major contributing factors was that the Johnstown region missed the housing boom earlier this decade. While housing prices rose by an average of 39 percent across the commonwealth between the second quarter of 2001 and the same period of 2007, local housing prices increased by only 11 percent.
Price said that, historically, home prices rise at the rate of inflation. He said corrections are most likely in markets in which such uncharacteristic price increases have taken place.
“Johnstown has never been a market that goes up or down to extremes,” said Jay Maruhnich, broker/owner of Coldwell Banker Prestige Realty in Richland Township.
“Other markets are more volatile. When they go sour, they go sour at a bigger percentage – and when they boom, they boom at very high levels. We’re just not going to see those types of great fluctuations.”
Price said that when a market shows stronger growth than the average, it usually is due to an influx of population or job growth. While the region is not dealing with an overwhelming immigration of new residents, job numbers have been strong in Cambria County during the past year, twice reaching record levels.
‘Gradual increases’
Gary Green, owner/broker of Century 21 All Service in Richland Township, said the continued steady appreciation of home values locally likely isn’t a commentary on the strength of the local economy.
“Johnstown isn’t doing anything differently; we’re just a unique area,” Green said. “I’m sure there are other areas across the country that have seen the same thing.”
Price said that while some may view the lack of a retrenchment in home prices in the region to be a negative when considering buying, they should see it is a positive. He said it serves as an indicator that the local market serves as a safe place to invest in real estate.
“That’s what makes this a better market to buy into, because you know you’re going to see gradual increases in home value,” Green said.
“Historically, we’re at a 3 to 4 percent increase each year. You’re not going to get those big leaps, but it’s a good and safe place to buy a house.”
Local News
Johnstown housing market remains steady
- Local News
-
-
Proposed bill would expand use of traffic-light cameras
Some call it the hand of “big brother,” others are convinced cameras at signal lights would be effective in curbing red-light runners and ultimately saving lives.
-
Minister's trial date set
An issue has been resolved over the report from an examination of a girl allegedly taken by her mother to a Bedford motel to have sex with a traveling minister, clearing the way for a trial.
-
AP: Almost half of new veterans seek disability
America’s newest veterans are filing for disability benefits at a historic rate, claiming to be the most medically and mentally troubled generation of former troops the nation has ever seen.
-
Geistown beginning crime watch program
Residents will patrol Geistown streets in the coming weeks as part of a community watch program.
-
Persons of the Week: Nanty Glo vets will remember fallen comrades
Michael Kurtz, Tom Kasecky and Steve Kasecky will be among members of the Loy A. Douglass Post 3489 of the Veterans of Foreign Wars in Nanty Glo who will be honoring fallen veterans today, Memorial Day.
-
AG candidates face potential conflicts of interest
Both candidates for Pennsylvania attorney general have family ties that could pose a conflict of interest for the one who is elected as the state’s next chief legal officer.
-
Lawmakers: Capitol rallies unpersuasive
Nancy Richey stepped to the podium with a microphone at the Capitol rotunda with the hope that the right people would hear her message.
-
Richland closer to new chief
The search for Richland’s next police chief is winding down.
-
In brief: Thunderstorm downs trees, knocks out power
A late Sunday afternoon thunderstorm brought high winds, hard rain and hail to the Cambria-Somerset region.
- District Deaths May 28, 2012
- More Local News Headlines
-
Beryl Makes Landfall on Florida Coast
Service Dogs Help Wash. Soldiers Battling PTSD
Raw Video: Heckler Bursts in on Blair Testimony
Japan Farmers Plant, Seek Radiation-free Rice
UN Blames Syrian Forces for Shelling Houla
Raw Video: Gay Protest Blocked in Moscow
Vatican in Chaos After Butler Arrested for Leaks
Jimmy Carter Endorses Egypt's Election Results
Biden Addresses West Point Graduating Class
Dozens of Children Killed in New Syria Attack
Raw Video: Activists Allege Massacre in Syria
NJ Man Charged With Murder in Death of Patz
Support, Fun for Kids of Fallen Soldiers at Camp
Fugitive Penguin Caught, Returned to Aquarium
50 Years Later, Underground Fire Still Burning
Light Show Transforms Sydney Opera House
Raw Video: Unruly Passenger Restrained in Miami
Raw Video: Robber Uses Drive-thru Window
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
