Real Estate Information Archive

It's still up, up, and away for home prices in many markets. CoreLogic reports prices nationwide were up 6.8% year over year for October. This means prices in many markets are still appreciating more than the historical norm of 2% to 4%. (Inflation is a key factor in home-price appreciation.)

After the housing bubble burst in 2008, many of us couldn't wait for home prices to rise after such a precipitous and unexpected fall. (This was the first time many of us had actually experienced home-price deflation.) Fortunately, prices since then have recovered, and advanced to set new highs in many markets. 

But sometimes you can have too much of a good thing. Rising prices can be a windfall for sellers (though not necessarily if a seller is also a buyer), but they can be an impediment to buyers, particularly first-time buyers with no equity to cash in.  That's the problem today: a dearth of first-time no-equity buyers.

We'd like to see a further reduction in nationwide home-price appreciation going forward. More signs suggest that's the case in more markets. (Case-Shiller, in particular, has seen a slowdown.) Slow and steady has always won the real estate race in the past. It will continue to win the race in the future.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Time to Brace Ourselves (Or Maybe Not)

Thanks to Thanksgiving, Black Friday, and Cyber Monday, there really isn't much to report on the housing and mortgage front. The focus for most of the past week has been on eating and shopping. Therefore, we might as well take another look at the Federal Reserve and its upcoming Dec. 16 meeting. After all, it's only two weeks away.

We again turn to CME Group and its data on trader expectations. As it stands now, traders in federal funds rate futures contracts are pricing a 75% chance the Fed will raise the fed funds rate come Dec. 16. That's the highest odds given for 2015. 

Trader expectations were further buttressed this past week on the words of one Fed official. Federal Reserve Bank of Atlanta President Dennis Lockhart said he favors raising the fed funds rate this month. (The fed funds rate is a base rate for all other rates and hasn't been raised since 2006.) “Absent information that drastically changes the economic picture and outlook, I feel the case for liftoff is compelling,” Lockhart said.

Yes, the language is mealy and equivocating, but Fed officials speak only in equivocating terms (the difference is always a matter of degree). November's employment numbers (released on Friday) will likely be the final arbiter: If November saw 200,000 or more new jobs created, we'd expect to see the odds of a rate increase rise above 80%. We expect to see 200,000 or more new jobs for November.

At this point, though, pretty much everyone has priced in a rate increase. That's the way it's been for the past few weeks. Mortgage rates have held steady, and have even drifted lower.  We've mentioned in the past that it's not the actual event that moves markets; it's the anticipation of the event. Pretty much everyone is done anticipating.

That said, we expect mortgage rates to hold steady over the next week to 10 days. When we get closer to Dec. 16, volatility could pick up. Post-Dec. 16, we wouldn't be surprised to see rates drift higher.  The impetus is for lending institutions to find a way to generate more interest income. A higher fed funds rate helps the cause. 

That means that the rates we have today might be the best rates we see for awhile. If anyone is in the market to refinance or to buy, now is as good a time as any to lock and load. The odds of gaining 10 basis points isn't worth the risk of losing 25 basis points. Better to be pound wise and penny foolish then the reverse.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

“White Christmas” is playing on the loudspeakers at the mall, and the grocery stores are all stocked with red and green M&M’s. The holidays are officially here! Black Friday and Cyber Monday are two of our favorite holiday traditions – you can get a deal on pretty much anything you need for your home – but the savings don’t have to stop there!

Save money all season long with these savvy holiday tips:

Serve Appetizers Instead of Full Meals

If you're planning on hosting a get-together or party, serve bite-size finger foods instead of springing for a multi-course meal. Guests mostly just want to show off their holiday sweaters anyway, so whip up some homemade appetizers and let the people mingle! For some great recipes, read: From Bacon to Brie.

Make Your Own Decorations

Getting festive is always fun, but you don’t want to break the bank on decorations. Instead, go in the backyard (or craft store), scoop up a few pinecones and then go to work making these easy, seasonal pinecone decorations. People love them, and they cost you almost nothing!

Turn Old, Full-Size Cards into New Postcards

Do you have a stack of old Christmas cards from seasons past? Excellent. Cut them in half and use the cover as a repurposed post card. Nobody will know the difference, we promise.

Stay at Home

The holidays are jam-packed with new movies, expensive dinners and other out-of-the-house activities, but you don’t have to do them all! Save some cash by staying home with your family and playing some old board games (charades works, too). Who knows, it might turn into a longstanding, cost-effective tradition!

If after all of this you still hate the word cheap, just say frugal, instead. Frugal isn’t so bad.

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

The odds continue to rise. Last week, we reported that traders in federal funds rate futures contracts were pricing in a 74% chance the Federal Reserve will raise the fed funds rate come Dec. 16. The odds over the past week have been lifted to 78%. This means that in three weeks something will occur that hasn't occurred in nine years: the Fed will officially raise an important benchmark interest rate.

Of course, that doesn't mean current mortgage rates are a thing of the past. We've frequently mentioned that anticipation moves markets, not the actual event itself.  This is the reason we've seen mortgage rates actually hold steady, or even drift lower, over the past three weeks.  The future is priced into the present.

We're not expecting too much volatility in rates over the next couple weeks. AsDec. 16 approaches, that could change. (Another blow-out employment report, due on Dec. 4, will further raise the odds of a fed funds rate increase, but it shouldn’t do much to move interest rates more than they've already moved.)

That said, after the fed funds rate increase occurs, we wouldn't be surprised to see interest rates begin to drift higher. Not much higher, but enough to appreciate the rates available today.

 Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Sales Falter; Should We Worry?

Sales growth has ground to a halt as we enter the waning days of 2015. Sales of existing homes dropped to 5.36 million on an annualized rate for October. That's a 3.4% decline from September sales. Year-over-year sales growth has dropped to 3.9%, the lowest reading since January.

Supply is still an issue. This has been case for at least the past two years. Though sales were down in October, that did not materially lift supply relative to sales. Supply currently stands at 4.8 months at October's sales rate. A year ago, supply stood at 5.2 months.

Some pundits have blamed weakening prices for the inventory decline. The median price for an existing home stood at $219,600 in October, a 0.9% decrease compared to September. Year over year, the median price is up 5.8%, while the average price is up 3.4%. Price appreciation is down, but it is reverting to more historical norms. We don't necessarily view this as bad, though it does mean home owners still saddled with negative equity are unlikely to find relief in the near future.

As for new home sales, they posted at 495,000 on an annualized rate in October. This was below consensus estimates, but was a 10.7% improvement over September sales. Supply is less of an issue in the new home market. At the current sales pace, supply has risen to 5.5 months, putting it near the historical norm of six months supply.

It appears home builders are either targeting more lower-end markets or seriously discounting their inventory. The median price of a new home dropped a severe 8.5% to $281,500 for October. Year over year, the median price is down 6%.

To be sure, sales data are backward looking, while sentiment is forward looking. But given recent trends in sales and pricing, we would not be surprised to see another decline in home builder sentiment in December.

Despite the recent spat of negative news, we remain positive. When economic growth is considered, it's possible the past two months of sales and price data are an anomaly. The economy continues to grow. Indeed, third-quarter gross domestic product (GDP) was revised up to 2.1% annualized growth. The initial report last month showed growth at 1.5%. Readings on consumer activity remain positive, which supports the contention that U.S. consumers continue to drive demand for U.S. production. A spending consumer is a confident consumer.

Should we worry?

We don't think so. The economy continues to grow. Strong job growth in October also provides a reason to remain bullish. If November job numbers come in as expected (with 200,000 or more new jobs), we would expect to see a positive trend form in home sales and pricing to start 2016.

 Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

For many, the day after Thanksgiving is about family time and the Black Friday shopping extravaganza. For residential plumbers nationwide, it’s the single busiest day of the year. In fact, plumbing problems spike 50% the day after Thanksgiving. Think about it. You’ve delighted in turkey and sweet potato casserole, and now your wayward scraps and greasy dishes are stressing your sink and clogging your drains.

Would you prefer to spend your money on presents or plumbing issues? To keep your pipes clear and clog-free, it’s important to know what you can safely put in the disposal and what you can’t. Here’s the skinny:

1. Don't Treat the Disposal Like a Trash Can

As much as possible, throw leftovers in the trash or compost pile. When you do use your disposal, feed waste gradually to prevent overloading. 

2. Be Picky About What You Toss

Don't put turkey bones, poultry skin, potato peels, celery and fruit down the garbage disposal.

3. Keep Grease to a Minimum

Avoid pouring fat and cooking oil down the drain and wipe off greasy pans before putting them in the sink.

4. Run Water

Run water when you use the disposal and keep it running for a few seconds after you turn the disposal off.

5. Don't Run the Dishwasher

Don't operate the dishwasher if you think there’s a problem. It discharges into the disposal.

This Thanksgiving, don’t be sitting on the sidelines waiting for your handyman to arrive for an impromptu plumbing fix. Show your drains a little love so you can keep your focus on food, family and all the freebies you get if you’re first in line on Black Friday. 

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Core consumer price inflation – measured without food and energy – came in at 1.9% on an annualized rate for October. The Federal Reserve's target is for 2% annual inflation. The latest numbers on inflation coupled with October's strong employment numbers point to a high probability the Fed will finally raise the federal funds rate next month. Traders in fed funds rate futures contracts are now pricing a 72% probability that a rate increase will occur in December.

Interestingly, interest rates in general and mortgage rates in particular have leveled off now that most everyone believes a rate hike is imminent. We're not surprised. Markets move in anticipation of an event, but once the event appears imminent, market activity tends to abate. Mortgage rates have certainly leveled off. Rate quotes have even drifted lower over the past few days.

Many market watchers believed rates would simply continue to rise until Fed officials convened onDec. 16. This is, no doubt, the primary reason mortgage application activity has accelerated in recent weeks. Better to lock in today before rates rise tomorrow. There is a flaw in the logic, though. When everyone anticipates rates will rise, rates have already risen. 

Of course, no one can be 100% sure. It's unlikely, though it's possible, that November employment numbers could meaningfully fall short of exceptions. Annualized gross domestic product growth, which posted at 1.5% for the third-quarter, could also be revised lower. If these events were to occur, you can be sure interest rates will fall. 

But if it becomes even more apparent the Fed will raise the fed funds rate, we don't think mortgage rates will move much higher, or higher at all. We would not be surprised to see rates drift lower the closer we get to Dec. 16. The more apparent an impending event becomes, the more likely markets are to move in the opposite direction.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

A Respite or a Reversal?

Home builder optimism stepped back this month. The Wells Fargo/NAHB Sentiment Index posted at 62 for November. For the past couple of months the index had posted at 64. (A reading over 50 means optimism outweighs pessimism.)

The future sales component was the most notable disappointment in the November numbers. Builder optimism eased five points to post at 70. This means builders still expect to sell a lot of homes in the coming months, just not as many as they expected last month.

The one consistently weak component in the index remains weak, though it was slightly less weak compared to October.  The traffic component rose one point to 48 in November. Lack of traffic has been a lingering problem for home builders. The component remains weak due to our biggest lament – lack of first-time buyers. We're hoping that D.R. Horton's success, which we reported on last week, in building and selling starter homes points to an overall increase in first-time buyer participation.

Builders were also a bit down due to less building activity in October. Housing starts dropped 11% to 1.06 million units on an annualized rate for the month. Most of the damage was concentrated in multi-family homes, which tumbled 25% to 338,000 units. The good news is that the drop in single-family homes was much less severe. Single-family starts were off 2.4% to 722,000 units.

Of course, our bread is buttered with sales. Multi-family units include both apartment and condominium construction. New condo and new single-family home sales remain elevated in most major metropolitan markets. Construction activity should remain brisk. Indeed, permits continue to trend higher. Single-family permits were up 2.45% to 711,000 units on an annualized rate in October.  Multi-family permits were up 6.8% to 439,000 units.

Next week, data on existing- and new-home sales will be released for October. Sales for both segments have trended higher (though not linearly) for 2015. We expect sales to continue to push higher through the first half of 2016. In other words, 2016 should look and feel a lot like 2015, at least from the outset.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Whether you’re hosting two guests or twenty, Thanksgiving is a big responsibility. We don’t mean to seem melodramatic, but in more than a few ways, your guests are putting their general wellness in your hands for the day.

Don’t cancel your holiday plans just yet. With a little foresight and an eye for safety, it’s easy to make sure everybody comes out of turkey day in one piece. Here are five ways to make sure your guests survive Thanksgiving.

Clear Your Walkways

An icy, dark walkway is an invitation for a broken wrist (or worse). If you live in an area that’s already seeing below freezing temperatures, buy some rock salt and spread it any place your guests might enter or leave your home. If it’s not that cold yet, at least double check your outdoor lighting to make sure there aren’t any dark spots where someone might trip and fall.

Thaw Your Turkey Properly

There are a number of ways to thaw a turkey, but the safest way is to leave it in a fridge set at 40 degrees (this can take a few days, so hopefully you’ve already started). If you haven’t done so in a while, now is the perfect time to perform a quick fridge inspection to make sure your Thanksgiving feast is safe.

Calibrate Your Oven

Your oven may say it’s preheated to 350 degrees, but don’t believe everything you see. If things are out of whack in oven-town, at best you’ll wind up with a burnt bird, at worst you’ll put your guests at risk for foodborne illness from undercooked meat. Prevent this by taking fifteen minutes to calibrate your oven before the turkey goes inside!

Buy Fire Extinguishers

There are an estimated 2,000 fires every Thanksgiving, which result in an average of five deaths, 25 injuries and $21 million in property loss. The best way to make sure your house isn’t a hazard is by doing a fire-safety onceover and, of course, keeping an extinguisher handy in the kitchen. That way, a grease flare-up turns into an exciting story instead of a tragic accident.

Protect Your Pets

Furry visitors count as guests, too! If you have a pet, or have one visiting for Thanksgiving, there are two major concerns for their safety: turkey skin and bones. Turkey skins are very difficult for dogs to digest, and bones present a choking hazard to all animals (even if they don’t choke on them, the sharp edges can pierce an animal’s digestive track). If pets are celebrating Thanksgiving at your house, keep them safe by keeping leftovers and table scraps out of reach.

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

D.R. Horton, the nation's largest home builder, reported strong financial results for its fiscal-year fourth quarter. Earnings were up 44% year over year. Orders, an important metric for future revenue, were up 19%. D.R. Horton executives see strong sales and solid earnings growth into the relevant future.

But it's not D.R. Horton's consolidated numbers that is the key takeaway. D.R. Horton's success in the starter-home segment is what we find encouraging.

In late 2013, D.R. Horton started its Express brand of entry-level homes. In the quarter ended this past June, D.R. Horton reported that Express homes had grown to account for 19% of its orders.

The segment continues to grow. First-time home buyers accounted for 40% of D.R. Horton's sales in the latest quarter. Year over year, Express sales tripled to 5,648 homes. D.R. Horton sold a lot of Express homes, and sold them at a lower price. The average price for an Express home was a very reasonable $185,000, which was $6,000 less than the previous quarter.   

To be sure, we're looking at markets that tend to be lower priced – those in Florida and the Carolinas. Margins aren't as thick as those on higher-priced homes. But if the turnover is high enough, good money can be made selling to first-time buyers, as D.R. Horton proves.   

We frequently mention that first-time buyers are key to maintaining the housing market. Given Horton's success, we expect more builders to follow its lead and up their investment in the segment. That would be good news for near-term sales prospects and for housings' long-term health.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.