Real Estate Information Archive

We've discussed this before, but it's worth discussing again: Rising interest rates won't derail the recovery (both economic and housing). We appear to be in the minority opinion, though; many of our colleagues think otherwise.

Our thesis goes like this: Rising rates will be accompanied by economic and job growth, which means more people will be able to afford a home, along with the cost of higher lending rates.

At this point, more people working trumps historically low interest rates. Moreover, rising rates accompanied with economic growth will spur people to action: If they believe rates are more likely to rise than fall, they will tend to act now instead of procrastinating.

It's also worth noting that we are still in an unnatural lending environment. The Federal Reserve's manipulation of mortgage rates is an anomaly that can't go indefinitely. (The market can take only so much liquidity before serious dislocations occur.) We think the return to normalcy – a lending market based on natural lending rates, economic growth, and job growth – offers many more positives than negatives.

We've had higher mortgage lending rates in the past and have prospered. If higher rates are accompanied with a strong economy, we see no reason why we wouldn't prosper again.

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.

Three weeks and three-consecutive mortgage-rate increases. That's the lead story on the financing-front of housing. The rate on the 30-year fixed-rate loan is up over 20 basis points nationally based on Bankrate.com's survey of mortgage lenders.

In fact, rates are up to levels last seen in late-March and early-April.

There are a couple of variables at work in the mortgage market. For one, the economy and job growth have shown signs of picking up pace over the past month. More economic growth and more job growth means more loan demand, which pressures interest rates to rise.

More recently, speculation over the Federal Reserve and quantitative easing have pushed rates higher. Specifically, investors and speculators believe it's more likely that the latest round of quantitative easing could end sooner than later. The Fed itself has suggested as much: Chairman Ben Bernanke, speaking to Congress this week, didn't rule out the possibility of tapering the latest round of quantitative easing (QE3) by Labor Day if the labor market continues to improve.

Quantitative easing is simply the Federal Reserve injecting money into the banking system by purchasing U.S. Treasury notes and bonds and mortgage-backed securities. The Fed purchases these instruments by creating new money, which it credits to banks' Fed account when the banks sell the instruments to the Fed.

Lately, the Fed has been purchasing theses instruments at the rate of $85 billion per month. The purchases create demand, which, in turn, reduces yield to produce the record-low mortgage rates we've experienced in the past year.

To be sure, Labor Day isn't set in stone, and the Fed is still concerned the labor market could backslide, but it's becoming more apparent quantitative easing won't go on indefinitely. This means a floor has been placed under mortgage rates, so it's become more likely that rates have gone as low as they will go (sans an unseen economic catastrophe).

If housing continues to pick up pace, the Fed will have even more reason to back away from quantitative easing. Housing appears to be picking up pace.

Sales of existing homes increased 0.6% to an annual rate of 4.97 millions units for April. Sales of single-family homes were particularly robust, increasing 1.2% for the month. Existing-home prices also improved strongly. The median price of an existing home increased 4.8% to $192,800 in April – the highest price of the recovery.

We've frequently mentioned that rising prices spur more supply to come to market. That's exactly what's happening. An additional 230,000 units came to market in April. This lifted the supply of existing homes to 5.2 months from 4.7 months at the current sales rate.

On the new-home front, sales growth was even more dramatic, with sales rising 2.3% to 454,000 units on an annualized basis in April. Meanwhile, prices soared, increasing 8.3% to a record median price of $271,600.

That said, new homes aren't pouring into the market like with existing homes: New homes for sale rose only 5,000 for the month, which means inventory remains low at 4.1 months.

In short, the housing market is shaping up nicely as we head into the summer selling season. We expect sales to improve materially as the summer progresses.

 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.

What do a Swiss Army knife and a can of blue paint have in common? They’re both multi-functional! You can probably figure out the knife’s other uses, but what’s up with blue paint? Let’s just say that after you find out, you may start thinking about repainting your porch.

Choosing blue paint isn’t the only design decision that can have hidden benefits. Here are four home décor items that have two (or more) functions you may not know about.

Blue paint can also be ....

Wasp repellant. Few things ruin a relaxing porch session faster than a swarm of angry wasps, and getting rid of them isn’t always easy. Traipsing around with a can of Raid is one option, but here’s another idea: paint your porch ceiling a light blue (like robin’s egg or periwinkle). According to Southern wisdom, the color deters wasps from nesting in your ceiling because it’s a similar hue to the sky. Some people write this off as folklore, but we figure if it works, it works! At the very least, you’ll promote a sense of calmness on your porch.

Solar shades can also be ...

Furniture protectors. If ever there was a décor piece that deserves the Jack-of-all-trades nickname, it’s solar shades. Not only do these puppies create a cool, modern look in any room, they also reduce glare and heat from the sun. Plus, they block out UV rays, which prolongs the life of your furniture. To put your solar-shade excitement over the edge, some designs don’t obstruct your view when they’re drawn. There are a number of options on the market, but the Signature Solar Shades from Blinds.com are extremely popular.

Mirrors can also be ...

Sunlight magnifiers. A full-length mirror’s ability to show you how great your butt looks in those new jeans is well documented. But, depending on the placement of the mirror, it can also be used to brighten up a room! If possible, position a mirror across from a window or other source of natural light – it will reflect the light around the room and brighten things right up.

Sherwin Williams Harmony Paint can also be ...

An air freshener. If you thought paint was only good for adding color to a room, think again. Not only is the Harmony series a zero-VOC paint (good for your health), it also gets rid of house odors (good for your nose). Whether your home-stink comes in the pet, smoke, food or mold variety, Harmony is specifically designed to help freshen things up.

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.

It sounds like a silly question at first blush: Of course, economic growth is our friend. And for the most part, it is.

Economic growth leads to job growth, which, in turn, leads to lower unemployment and higher wages. More people working and earning more money is obviously good for sustaining the housing recovery. We will see higher participation, thus the higher likelihood of sustaining the recovery. (At this point, should we still be calling it a recovery, or simply the housing market?) In other words, housing will resume its rightful mantel as a chief economic driver.

But economic growth won't be all sunshine and lollipops.

With higher economic growth comes higher interest rates on rising consumer and commercial loan demand, and rising investor demand for more yield. Moreover, sustained economic and job growth will embolden the Federal Reserve to withdraw from the mortgage-backed securities market. Without the Fed's current enormous appetite for these securities, mortgage rates will surely rise.

So, yes, economic growth is good, but it won't be so good for potential borrowers who have been lulled into inertia by the false belief that today's interest rates are a permanent fixture of today's lending markets.

   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.

After a couple of months of indifference, sentiment among home builders is once again improving. The NAHB/Wells Fargo Home Builder Sentiment index improved three points to 44 in May, reversing three months of lower sentiment postings.

Home builders have been fretting recently over higher material, labor, and land costs; a still-restrictive lending environment; and a drop off in buyer traffic. (Interestingly, the accompanying report to the index points out that buyers feel a sense of urgency because of the limited number of new homes for sale.)

The rate of starts has been a source of frustration for many home builders. In fact, new-home starts fell more than forecast in April to a five-month low, indicating a pause in the industry’s progress (though the pause was centered mostly on multi-family units). Starts for the month slumped 16.5%, to an annualized rate of 853,000 units, after being revised higher 1.02 million units in March.

The good news – and this likely why home builder sentiment improved – is that the rate of starts will likely accelerate going forward. Building permits surged to a five-year high, increasing 14.3% in April. This points to stronger building activity as we head into the heart of the spring/summer selling season.

Inventory remains an issue, though, and given the slowdown in builder activity in recent months, that's unlikely to change. But we've noted many times that rising home prices will stimulate additional supply – from both home builders and existing home owners.

Data from the NAR point to some progress on the inventory front. In April, the total number of single-family homes, condos, town homes, and co-ops increased 4.1% month over month to 1.75 million in April. Higher prices are prompting more people to list their home, so the market is making progress, though it still has a lot more progress to make: on an annual basis, inventory is still 13.5% below year-ago levels.

That said, pricing points to higher inventory: Zillow, RealtyTrac, Lending Process, Services, Case-Shiller have all produced data that suggest the rising-price trend is sustainable. The latest data from the FNC Residential Price Index, encompassing 100 major metropolitan markets, also show prices rose 5.5% year over year in March.

To be sure, price trends don't last in perpetuity, but the data suggest the trend will likely hold at least through next year in most major metropolitan markets.

Home prices aren't the only thing on the rise, though. Mortgage rates have been rising too. Over the past three weeks, rates have trended meaningfully higher. Much of the rise is attributed to a strengthening economy and a perception of sustainable job growth. This has caused rates to jump 15 to 20 basis points on many 15- and 30-year lending products.

We don't know if we have a trend in the making; one bad jobs report or another European financial meltdown could drop rates once again, but it's worth noting that when rates fall, they tend not to fall far. They might fall by 20 or 25 basis point, but they show little inclination to go any farther.

So this remains the perfect market in many respects: Affordability remains at a multi-decade high, mortgage rates remain at a multi-decade low, jobs and home prices are trending higher. Waiting simply carries much greater risk commensurate to potential reward these days.

 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.

Dinner under the stars is one of life’s simple pleasures, and that’s why we think creating a beautiful outdoor dining space shouldn’t break the bank. With a few simple tweaks, you can transform your yard, patio or courtyard into a space fit for a feast. Plus, creating a little incentive to dine at home can save you a ton of money in the long run – the average American family spends $4,000 a year eating out at restaurants!

Here are six budget-friendly patio décor suggestions:

Know the role. Instead of letting your outdoor space become a social catch-all zone, choose a specific purpose. Do you want it to be for dinner parties or slumber parties? Evening entertaining or daytime lounging? Make a decision and decorate accordingly.

Plant perennials. Adding pots full of perennials to your outdoor living space is an easy, cost-effective way to inject some color and visual interest. Why perennials, instead of annuals? You only have to plant perennials once and then you’ll get to enjoy them every year. Bonus: A well-manicured and maintained yard can increase a home’s market value by up to 83 percent!

Go double duty. Opt for furniture pieces that can multitask, such as side tables that work for board game tournaments and ottomans that store outdoor essentials like throw blankets, sunscreen and bug spray.

Shop at the right time. If you need to grab some patio furniture, wait until after July 4^th (prices take a dive after this major summer holiday). Tip: For the very best deals, visit stores like HomeGoods and Big Lots at the end of summer when they’re trying to empty their inventory.

Go big. This may seem counter-intuitive, but a few large pieces of furniture will stretch your dollar further than a collection of several small pieces. Plus, if you have limited outdoor living space, using large furniture instead of smaller pieces will prevent the area from feeling too cluttered.

Add a rug. If you have a covered patio or deck, adding a large area rug is hands-down the biggest-impact décor move you can make. This one piece will tie the outdoor space together and make it feel complete. Tip: The indoor décor doesn’t have to stop with a rug! Don’t hesitate to bring things like lamps, flower vases and throw pillows outside, too.

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.

It's no secret that investors (rental-housing buyers) are responsible for much of the housing-market gains we've experienced over the past couple years. This has prompted many pundits and commentators to opine that we are turning into a nation of renters.

We don't believe it because many polls (from Freddie Mac and others) show people overwhelming prefer to buy than to rent, so we are encouraged to see the rise in purchase-application activity, which recently hit a three-year high.

We also like the beneficial social aspect of owner-occupied buyers. Neighborhoods composed principally of buyers tend to be more stable, because a neighborhood of owners instills a sense of community. If there are problems, neighbors are more willing to band together to seek a solution. Renters, in contrast, tend to be more transitory, and more prone to leave, so problems are more prone to fester.

Property upkeep is another benefit. Neighborhoods of renters have less tendency to maintain their home and the surroundings. After all, it's not their property. In addition, because the landlord is frequently absent, there is no one around to pick up the slack should renters become negligent in upkeep.

This isn't to bash renters or landlords, but we think it's beneficial to property values and to community cohesiveness to see a pick up in owner-occupied activity.

  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.

Of course, the trend we speak of is home prices, which continue to move higher. Not only that, they continue to move higher at a rate few commentators would have proffered when gauging the market this time last year.

To wit, CoreLogic's latest report shows home prices nationwide, which includes distress properties, increased 10.5% year over year in March. This was the highest year-over-year increase since March 2006.

It doesn't appear the trend is likely to reverse in the near future. CoreLogic's Pending Home Price Index indicates that prices are expected to post a 9.6% year-over-year gain for April, with prices rising 1.3% for the month.

To be sure, housing markets are local markets, and prices in many local markets are not accelerating at the national rate, but it's quite extraordinary to be experiencing price gains that were prevalent during the height of the housing boom.

Now, this doesn't mean another bubble is set to burst; many markets are rising from a considerably lower base than what prevailed in the early 2000s. That said, these price gains – especially in regions that far exceed the national average – should prompt us to view the market with a more discerning eye; value and price tend to move in opposite direction.

We've mentioned in the past that rising home prices will lift more owners into positive equity, thus prompting more of them to list their home. It's an economic maxim that higher prices lead to more supply, and that appears the case today.

Calculatedriskblog.com reports that for-sale inventory is up 12.2% for the year, a notable improvement over 2011 and 2012, when the peak increase was only 5%. More inventory should lead to more sales activity.

The trend in mortgage delinquencies and foreclosures also portends better days ahead. The Mortgage Bankers Association reports home loans that were at least one month late or in the foreclosure process dropped to 10.3% of mortgages in the first quarter, down from 11.25% in the fourth quarter and 11.33% from the first quarter of 2012. This trend demonstrates a more robust and more resilient lending environment.

At the same time, mortgage rates continue to hold multi-decade lows. For this, we can again thank the Federal Reserve, which continues to purchase $40 billion in agency mortgage-backed securities each month, thus creating a demand that has helped keep rates low.

Though our record at predicting mortgage rates has been spotty, to say the least, it's worth noting that it appears more likely the Fed will cease purchasing mortgage-backed securities sometime in 2014. When the purchases stop, mortgage rates are sure to rise.

In short, this might be the perfect time to buy a home: prices are rising from a low basis, and buyers can finance their purchase with a low-cost loan. How long the perfect time lasts is anyone's guess, but we wouldn't be surprised to see something give – perhaps the price trend or low mortgage rates – by early 2014.

 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.

In the content above, we reasoned why caution is warranted, but we didn't reason that pessimism is, because we don't think it is.

Investment in residential real estate construction is a significant reason why we don't think the housing recovery is likely to wilt. Contrary to popular perception, consumption doesn't drive growth, investment does. We say that because production precedes consumption.

The good news is that private residential investment is on the rise, which portends a rise in sales and sales-related activity. Looking at the bigger picture, private residential investment tends to lead economic growth, so this is obviously a good sign going forward.

Though relatively more cautious, we remain bullish on housing. But as we've noted many times in the past: all real estate markets are local, which means we are more bullish on some markets and less bullish on others.

 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.