Real Estate Information Archive

A recent article in the Washington Post was hardly favorable to housing. Basically, the article dispels the belief that a home is the best investment for most people. Other investments, such as stocks, are better investments over the long run.

The article misses the point. The home you own isn't an investment. Properly speaking, a home is an asset. It's an asset that satisfies a very basic need – it provides a place to live. That's not the proper role of an investment, which most people buy for immediate cash flow and to eventually sell at a higher price for a profit.

A home frequently satisfies the latter requirement: Over time, a home usually appreciate in value. We aver that a decade from now most homes across the nation could be sold for more than the purchase price today. In this regard, a home is an appreciating asset, but still not an investment.

A home is only an investment when it is rented to generate monthly cash flow or to be renovated and flipped for a profit. But in this case, a house is not a home. It's only a home to the family occupying it.

We might be parsing semantics here, but words matter, and the Washington Post got the words wrong.

 Courtesy of 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.

Still Stuck in the Mud

Existing home sales are like a Jeep with bald tires stuck in a mud bog: The wheels spin furiously, but the Jeep goes nowhere. Not only does the Jeep go nowhere, it backslides.

So is the case with existing-home sales. For the seventh time in the past eight months, sales have backslid. Sales for March were 0.2% lower compared to February, posting at 4.59 million on an annualized rate. Year over year, sales are down 7.5%, which is the steepest rate of decline in nearly three years. Prices, on the other hand, continue to rise, with the median price moving up 5.4% to $198,000.

Now, new-home sales are adding to the sense of discouragement.

New-home sales had been trending mostly up over the past 12 months. That trend ground to a halt in March, with sales plunging 14.5% to a 384,000 annual rate , far below anyone's estimate.

Prices are an obvious drag on sales. The median price of a new home surged 11.2% to a record high $290,000. Year over year, prices are up 12.6%.

Prices in many markets are a baffling anomaly. They continue to rise, but they're not materially pulling in additional inventory. Admittedly, if you sell one home at a higher price, you'll likely have to buy another at a higher price, but rising prices tend to pull in more people willing to sell. In many markets this isn't occurring. Prices simply continue to rise, and continue to rise at a rate we thought would have abated by now.

Tight lending standards and higher mortgage rates are frequently fingered as culprits in stagnating home sales. Yes, lending standards are tighter than they were in 2006, but someone with a work history and a decent FICO score can still readily secure financing. As for rates, 4.5% continues to act as a ceiling on the 30-year fixed-rate loan. To be sure, rates spiked higher last summer, but the market should have adjusted to the new reality by now.

In the past, we've blamed a stagnating economy and weak job growth for sales failing to pick up pace. A dearth of new buyers entering the market is also to blame. One concern we have is ballooning student debt . A lot of young adults owe a lot on student-loan debt these days. That's making it tough for them to enter the housing market.

We remain positive, nonetheless. All markets are local, and all markets are complicated. There is a myriad of variables that influence value and establish trends. We think economic growth will overcome higher mortgage rates, and even higher home prices. Frustratingly, growth has been slow in coming about, but we still expect it to come sooner than later.

 Courtesy of 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.

Why Do This?

Hanging out on your deck or patio is great, but remember that after you go inside, your deck is left alone to brave the elements! After even just a few months, wind, snow and sun can start to take their toll on your deck or patio. Help a deck out by inspecting, cleaning and repairing the surface once or twice a year.

 FOR WOOD/COMPOSITE DECKS:

1. Clean any debris off of your deck. This includes leaves, twigs, pollen or other outdoor debris.

2. Inspect. Examine your deck for any damage like rot, loose boards, loose nails or rough spots. Take notes during your inspection so you can revisit the problems.

3. Prepare to replace boards if necessary. If you have rot deeper than ½ inch, you need to replace the board. When you're ready to replace, gently pry off the rotten board with a pry bar. Then, nail or screw in a new board. We recommend heading to your local home improvement store if you have any questions.

4. Replace protruding nails. Precipitation causes boards to warp and nails to pop up. If you have nails or boards sticking up, remove the nail. Reposition your board so it is flush with the rest of the deck and replace the faulty nail with a new, longer nail.

5. Smooth any rough spots. If you have rough spots on your deck or lots of wood splinters that could be dangerous to bare feet, lightly sand those spots with a medium pressure hand sander.

6. Grab a cleaner for your deck. You can find deck cleaners at your local hardware store for about $15 that will effectively kill any mold or mildew. If you have small children or pets, opt for a toxic-free cleaner.

7. Evenly distribute the cleaning solution. Be sure to wear long pants and shoes while you’re cleaning to protect your skin. After 15-20 minutes, rinse the cleaner off of your deck with a hose.

FOR CONCRETE/STONE/PAVER PATIOS:

1. Check for weeds. First, look for weeds! Pull weeds from between brick pavers or stone tiles because overgrown weeds can crack the brick or stone.

2. Scrub the patio surface. Clean the patio with a stiff bristled broom, dishwashing soap and water for a gentle clean. For a more intense clean, use a power washer (test first on a small area to make sure you won’t damage the patio). Note: Avoid the use of power washers on brick pavers! The high pressure of the water could crack the paver.

3. Remove stains. Oil-based stains can be removed by using kitty litter. Pour kitty litter on the stains and leave overnight. Then, sweep it away the next day.

4. Choose the right scrub brush. Avoid metal cleaning brushes, which can damage the surface. Stick to scrub brushes made from other materials!

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.

To make good decisions, one must be grounded in reality. Unfortunately, most people aren't grounded in reality.

The problem centers on the past. People anchor to sunk costs, which are past costs. We've seen this with home prices and mortgage rates.

People will automatically assume that past prices and past rates have to reappear in the future. That's not necessarily true. Just because a home sold for $400,000 in 2006 and sells for $350,000 today doesn't mean $400,000 will reappear. The same goes for the 3.5% 30-year fixed-rate loan. It was here once, but that doesn't mean it will be here again. The focus should be on where things are going from here forward.

Making good decisions requires thinking on the margin. For example, if you had a $50 ticket to a football game and lost that ticket, would you still attend the game? Many people wouldn't attend because they view the ticket as now costing $100 instead of $50 – the cost of the lost ticket and the cost of the ticket that would need to be purchased.

But that's the irrational way of looking at it. The rational way is to ask, “Am I willing to spend $50 to attend the game?” The first ticket is a gone, so it shouldn't factor in the decision. For most people, it does.

Similarly, we see people anchor to home prices or mortgage rates that no longer exist. It's always important to let our clients know that the prices that prevailed in the past shouldn't influence today's decision. What matters is what today's data lead us to believe for the future. This sounds like a simple concept, but it's one few people grasp.

 Courtesy of 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.

Last week, we referenced the movie Groundhog Day, because things continually feel the same. We're not moving backward, but we're not moving noticeably forward either.

Much of the recent economic data support our contention. The Federal Reserve's “beige book,” a compendium of data and Fed officials' interpretation of the data, points to tepid economic growth. Words like “modest” and “moderate” show up frequently in the text released this past week.

Home builders also continue to feel rather “moderate.” The NAHB/Wells Fargo Home Builder Sentiment Index posted at 47 for April. Fifty is considered breakeven, the point where sentiment tilts either positively or negatively. Right now it's tilting negatively.

At least housing starts picked up in March. Starts rose 2.8% to a 946,000 annual rate, lead by single-family starts, which jumped 6%. Unfortunately, the increase failed to live up to expectations. The consensus estimate was for starts to increase to 970,000 on an annualized rate. The positive takeaway is that single-family starts are gaining momentum.

We expect to see starts ramp up going forward. Weather in the first three months of 2014 had been atypically lousy. Indeed, the Federal Reserve referred to weather no fewer than 103 times in the beige book. With weather a less influential factor, perhaps we'll see a pick up in housing activity.

As for interest rates, they continue to be priced for sluggish economic activity. On the mortgage front, rates were down again this past week. Bankrate.com's survey has the 30-year fixed-rate loan priced at 4.43%; Freddie Mac has it priced at 4.27%, which is a six-week low.

The upside is that lower rates have reignited activity: The Mortgage Bankers Association reports refinances were up 7% for its most recent reported week. Just as important, purchase applications were up 1%. Purchase activity has been up every week for the past month.

Gains in purchase activity have been incremental, to be sure, but it appears a budding trend is taking hold. Ellie Mae's Origination Insight Report states that 40% of mortgage loans closed in March were originated for refinancing, while 60% were for home purchases. In February, the split was 43% for refinances and 57% for purchases.

FICO scores were another telling data point. Ellie Mae's numbers point to easing credit standards, a trend we've seen, and one that goes under-reported and under-appreciated. We've mentioned a few times over the past couple months that the perception of getting a mortgage loan differs from the reality. The perception is that it's difficult; the reality is that's not really so.

With any luck, the trends we see in the credit market will portend a step-up in economic growth. Credit generally becomes easier to come by when the economy is improving. Let's hope that's the case.

 Courtesy of 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.

Ready for a decor change at home?

No problem! To make a room feel updated, you don’t need a ton of time or a cleaning crew. You just need some flowers. Really! A bouquet of your favorite arrangement is the easiest, fastest and cheapest way to refresh a room.

Flowers are a great low-effort way to update a room for two reasons:

1. They smell great! A little bit of clutter seems like less of an issue when a room smells like roses. One fresh flower is all you need to fill a room with a pleasant aroma. Tip: For the strongest perfume, choose gardenias, roses or lilies.
2. They’ll make you happy. People with fresh flowers in their homes are more likely to feel less worried and less anxious. Buy a bouquet of your favorite flowers to reap the mental health benefits!

Ready to buy some flowers? Check out these tricks to make sure your bouquet rocks:

Choose Unopened Buds. 

It’s actually best to avoid grabbing the prettiest arrangement in the store. Instead, choose one that hasn’t met its full potential yet. If a bouquet has a few unopened buds, it will last longer, saving you money. Note: If there are several tightly shut green buds, skip that arrangement. Green buds mean they weren’t given time to mature before they were cut and will probably die before they open.

Feel the Petals. 

Gently feel all of the petals of the open or bloomed flowers. You want them to be firm and not squishy. Squishy petals mean the flower is farther along in its lifecycle.

Check the Stems. 

Even if you plan on cutting the stems once the flowers are in your home, check out the stems in the store. Choose flowers with white or green stems, which means they’re freshly cut. If the stems are dark, curling or brittle, they’ve probably been there awhile and won’t live as long.

Pamper Your Flowers at Home. 

Once your flowers are home, give them special attention! Prolong the life of your fresh flowers and reap the health benefits longer with these six tips.

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.

Nearly every economist, every pundit, every commentator has predicted 5% on the 30-year loan by the end of the year. We have to slot ourselves in with the crowd. Though we still have almost eight months to go, rates continue to languish.

Lower interest rates are certainly more popular than higher interest rates. But low interest rates alone can't drive the housing market. We simply need more economic growth, and not just to grow the market, but to sustain it. RealtyTrac reports that March marked the 42 nd consecutive month of falling foreclosure activity. But fissures are starting to show: RealtyTrac also reports that foreclosure activity was up in 29 states.

We hope that our prediction of 5% on the 30-year loan comes to pass, because a 5% rate will only occur if accompanied by stronger economic growth. We can see no other way that Federal Reserve officials will let it rise.

 Courtesy of 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.

Still Not Gaining Traction After All These Years

The employment numbers for March were reported this past Friday, and they were “okay” at best.

The Bureau of Labor Statistics reports that total payrolls rose 192,000 for the month, which was inline with the consensus estimate. The good news is that gains were realized in the private sector, which created 167,000 new jobs compared to 148,000 in February. The pace of job creation wasn't able to move the unemployment rate, though, which remains stuck at 6.7%.

To be sure, payroll growth has improved in recent months, but it needs to improve at a more robust pace. In January 2009, the number of unemployed plus the number of Americans not participating in the labor force was around 96.2 million. Today, that number has risen to over 104 million.

As a standalone number, 192,000 new jobs might seem a lot, but it really isn't when placed in context of the bigger picture. Five years into the post-recession recovery, new jobs should be continually added at a 200,000-or-more rate each month. That hasn't been the case.

Federal Reserve officials are also of the mind that things remain a little soft. The minutes from the latest Fed meeting points to continued loose monetary policy for years to come. This means the Fed is committed to holding rates low, even if it still plans to back off quantitative easing (buying Treasury notes and bonds and mortgage-backed securities).

In short, the economy is at best creeping forward, the taper is still on as scheduled, and easy-money policies will persist longer than many economists had expected. Of course, there is a hedge (there always is), and that is if extraordinary market data appear, the Fed's direction will change. This all feels a bit like the movie Groundhog Day.

At least the Fed is making us appear like a prophet on mortgage rates. At the beginning of the year, we thought the rate on the 30-year fixed-rate loan might bob about between 4.25% and 4.5% for a while. Bankrate.com's latest survey has the 30-year fixed-rate loan pegged at 4.47%; Freddie Mac's survey has it pegged at 4.34%.

At this point, though, we'd have thought the 30-year loan would have ceased bobbing about and started trending higher. That hasn't been the case, as the economy in general and the labor market in particular continue to spin their wheels.

Our primary concern is that if the economy doesn't gain traction soon housing – particularly new home activity – will start loosing traction. Existing home sales at the national level have gone nowhere over the past six months. New-home construction is an even bigger concern, because of its signification contribution to overall economic activity. The last thing we'd want to see is new-home construction backslide.

For the past two years, we've anticipated some kitty litter being thrown down so that the economy could gain traction and drive itself out of this rut. So far, that's yet to occur.

 Courtesy of 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.

We could all use some extra cash, am I right? Getting strict with your budget can certainly help you save money, but that’s not the only approach! A few tweaks to your lifestyle and a little organization can help pad your bank account.

Here are five organization ideas that can save you money:

Create a Mail System

If you have a stack of bills…somewhere in your house… chances are you’ll eventually miss a payment. Or worse, lose a bill. To avoid mail chaos and bill pay panic, create a mail system. That way, you’ll always be aware of what is owed when and avoid late fees. To make things even easier, skip the paper entirely and sign up for automatic withdrawal to pay bills. 

Potential savings: $34 per bill paid on time (an average credit card bill late fee)

Get to Know Your Clothes

When it come to clothes, we typically stick to certain “looks,” but that doesn’t mean you need to own five black sweaters! Take the time to organize your closet and remind yourself what you already own. That way, the next time you’re partaking in a little retail therapy, you’ll avoid buying a repeat item by accident.

Potential savings: $70 per sweater not purchased

Store Your Coupons Digitally

Paper coupons are great in theory, but actually keeping up with them can be a hassle. Instead of a box or binder, try the free app SnipSnap. To use the app, take a picture of it with your phone when you get a paper coupon. The coupon is then stored and organized by store. So, for example, when you walk into Kroger, all of your Kroger coupons will be saved for you.

Potential savings: $10 per week at the grocery store

Plan Meals in Advance

Over the weekend (or whenever you have a consistent 30 minute gap of free time) plan a menu for the week. Then, buy all of the groceries you’ll need at once. That way, you won’t be stressed to find something to eat last minute, which often leads to a restaurant, or takeout. And neither of those help your wallet!

Tip: Give your fridge a onceover before you head to the grocery store. Not only will you save some cash by not doubling up on items, you may save some veggies that are on the verge of expiration.

Potential savings: $8 per person, per meal (the average difference between eating out and cooking at home)

Be Proactive About Gifts

Let’s say you want to buy your sister a shirt from J. Crew for her birthday. Which is tomorrow. You’re pretty much doomed to a mall trip where you’ll pay whatever price they’re offering.

But, if you plan ahead, you can snag that shirt when J. Crew is having one of its many sales! Tip: This works especially well for the holidays because you’ll also avoid the stress of shopping for so many people at once.

Potential savings: $21, if you snag a $70 J. Crew sweater on a 30% off sale!

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.

One of the more prevalent complaints since the housing-market bubble burst in 2009 is how difficult it has become to get a mortgage loan. Compared to the early-to-mid-2000s, you could say that's true.

The reality is – from a historical perspective – that the mortgage markets is more accommodating than many people think. This point was driven home in a recent Wall Street Journal article, which basically stated that getting a loan really isn't so tough.

This is a point worth driving home to our clients. To be sure, the additional paperwork and verification required today compared to the recent past isn't something anyone particularly enjoys, but it's not unreasonable either.

Last week, we explicated the upside of a housing market lead by mortgage-financed purchases. The good news is that the reality of obtaining a mortgage is easier than the wide-spread perception, which is why it's important to change the wide-spread perception.

We're likely preaching to the choir on these points, but sometimes its worthwhile to do a little preaching to drive home an obvious point that isn't obvious to everyone.

 Courtesy of 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.