I have been monitoring the PA house market for a while. In 2007 and most of 2008, you would Not see a SFH under 1 M no matter how bad location and condition the home is, very old, close to train/Alma, etc. However, since the Q4 of 2008, the momentum crashed as the other house market and as stocks in 2001. Right now, there are many asking for less than 1 M. On the high end side, similar stories as you pointed out to my last Oct's post. The prices are reduced again and again. But still on market.
Some of my friends bought homes when the prices started to dip after last Oct. Now they could buy a similar home with a price at least 0.1-0.3M decrease. With all the market news and no easy stock money, the PA house market will go down for a long time. When will it return to the 2007/2008 peak? No ones know. It may take 5~10 years until significant inflation comes (now deflation). NASDAQ was 5000 in 2001. Now it is 1500. When will NASDAQ return to 5000?
One thing is sure, for now, buy early, lose more. Just some idea. Some people in this forum always advise "It is a good time to buy a home." You can make your own judgment.