Real Estate Information Archive

The housing market is a mixed-bag nationally. The mortgage market, on the other hand, is trending higher.

To be sure, we are still plagued by a dearth of purchase activity (though purchase applications increased 0.3% for the latest reported week). We'd love to see purchases trend materially higher; for no other reason that it will signal a more normalized housing market – one driven by owner-occupied buyers.

We mentioned a couple weeks ago that lending standards have eased considerably over the past two years based on the MBA's Mortgage Credit Availability Index . We don't expect that trend to reverse. We see further easing in the future.

For one, the state of the mortgage market looks pretty darn good. Black Knight (formerly LDS) reports loan delinquencies are down 15% year over year. Overall, foreclosure inventory is now at its lowest since May 2008.

Fewer loan delinquencies and lower foreclosure inventory are by-products of improved job growth and higher home prices. On job growth, the economy has been adding 200,000+ new jobs a month for the past five months. An improving employment outlook makes lenders more willing to lend – more jobs, more risk tolerance.

At the same time, mortgage loans are still cheap. Bankrate.com shows the national average on the 30-year fixed-rate loan below 4.3%. Freddie Mac shows it below 4.15%. These are 2014 lows.

Today, the mortgage market is as favorable to lender and borrower alike as it has been in the past six or seven years. Therefore, we highly recommend borrowers take advantage of the opportunity, because it's impossible to know how long it will last.

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.

It has taken nearly a year, but existing-home sales are finally moving in the right direction. Sales were up once again, climbing 2.6% to a seasonally adjusted annual rate of 5.04 million homes in June. This marks the third-consecutive month of national gains.

The existing-home market appears as healthy as it has been for some time. Sales were up, and so were prices. The median price of an existing home increased a stout 5.3% month over month to $223,300. What's more, total existing-home inventory rose to a 5.5-month supply at the current sales pace.

So we have rising inventory and rising sales, which point to a lower rate of price appreciation. As more supply comes to market, price growth will naturally ease (though the rate of easing will be tempered by additional demand). Slower price growth coupled with a consistent level of inventory and demand point to a healthier overall market.

Many market participants were encouraged by double-digit annual price increases after the bubble burst in 2008, but double-digit annual increases aren't the norm. They can lead to another bubble if they continue for an extended period. This is why we welcome annual price appreciation in the low-to-mid single digits at the national level.

Of course, local markets are impacted by variables unique to the area – demography, supply, demand, job growth, composition of jobs, etc. – but over the long-haul the rate of price appreciation and the rate of sales will tend to moderate to a lower-single-digit mean.

The good news is the existing-home market is progressing at the national level. The bad news is the new-home market is regressing. This is somewhat surprising, given the strong gains in home-builder optimism in recent months.

New-home sales were actually quite pitiful in June, plunging 8.1% month over month to 406,000 units on an annualized rate. The drop in sales raised supply to 5.8 months vs May's 5.2 months. Total new homes for sale increased to 197,000 vs 191,000.

What's more, discounting couldn't even move inventory. The median price of a new home declined 3.2% month over month to $273,500. Year over year, the median price of a new home is up 5.3%, but sales are down 11.5%.

If demand falls to pick up, either more discounting is in store or fewer homes will be constructed. If either scenario materializes, you can be sure builder sentiment will dive.

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.

Do you treat your home like your ATM card?

Many Americans apparently do, according to recently released housing data. The Wall Street Journal reports that in the first quarter this year, homeowners took out more than 230,000 home-equity lines of credit, also known as HELOCs, giving them access to some $23.4 billion—the highest quarterly figure since 2008.

What’s behind the peak in borrowing? Lenders are offering more attractive interest rates (the average HELOC rate was 5.01% in June, down from 5.16% a year ago) and allowing people to borrow a greater percentage of their home’s value. Homeowners are taking advantage of the lower rates and greater access to help pay for renovations or even to buy new homes, as well as to pay off non-housing-related costs like emergency expenses and higher-interest credit card balances or personal loans.

While it might be tempting to take on new debt in order to pay off old ones, there’s a hidden danger in doing so: Defaulting on a HELOC could carry far worse consequences than defaulting on a credit card or other type of loan. Because you’re putting up your home as collateral, a lender can foreclose if they don’t get their money back.

And homeowners who use their lines of credit to buy a new home put themselves at risk because a drop in home prices could mean that, with your mortgage and what you’ve borrowed from your HELOC combined, you end up owing more for your property than you could sell it for.

Still, there are some benefits to HELOCs over conventional loans. For starters, unlike with a home-equity loan, you’re not receiving a lump sum of cash; you’re only borrowing the amount you need, which may or may not be up to the full line of credit. And if you draw down only a small amount at a time, you only have to pay interest on that amount—just make sure you’re aware of changing interest rates, as HELOCs typically have adjustable rates rather than fixed ones.

A couple weeks ago, we lamented the dearth of young adults venturing out on their own. Indeed, Pew Research , a think tank, reports that nearly one in four young adults (age 25-to-34) still live with their parents, more than double the 11% who lived with their parents in 1980. We reasoned that many of these young adults have either poor job prospects or are weighted down by onerous student-loan debt.

Perhaps we over-reacted a bit. Now, it appears more of these young adults are willing to become actual adults by moving out on their own. What's more, many of them are buying a home. Trulia reports that the number of young adults age 18-to-34 who became homeowners rose 0.9% in 2013. Trulia's data contrast with Census Bureau data that show ownership fell by 0.1%.

More millennials entering the market would be the start of an important housing trend. Better yet, it would be the start of a trend with considerable staying power.

A large percentage of young adults out of the housing market is a source of large pent-up demand, which could lift overall demand for years to come. As more millennials enter the market, they will have a ripple effect that will lead to more demand for more expansive homes. As millennials become more established in their jobs, they'll naturally seek to trade up.

Living with mom and dad is comfortable, but unhealthy as an adult. Eventually everyone has to make a break. This basic fact of life bodes well for housing over the long term.

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 Tale Of Two Markets!

Actually, we refer to one market – the new-home market. But we say two, because we refer to the new-home market now and the new-home market in the future.

As for the here and now, the market appears somewhat languid. New-home starts come in at 893,000 units on an annualized rate in June. This is 9.3% lower than the revised 985,000 units posted in May. As for the important single-family segment, starts come in at 575,000 units on an annualized rate, which is 9% lower than the number of units in May.

The good news is that the future new-home market appears more robust – at least that's our take from the latest Home Builder Sentiment Index .

Builder confidence for new single-family homes surpassed an important milestone in July, rising four points to a reading of 53. Anything above 50 indicates that builders are more positive than negative on the outlook for new-home activity. This is the first time since January that the index has crested above 50. This suggests we should look forward to more new-home construction and more new-home sales in coming months. Let's hope that's the case.

We say “hope” because we'd be more optimistic on a pick up in both new- and existing-home activity if we saw a pick up in purchase-mortgage activity. Unfortunately, weekly activity across the country is down, and not by an insignificant percentage. The Mortgage Bankers Association reports its purchase index fell 8% for the July 11 week, more than reversing a 4% gain in the prior week.

Of course, we offer our usual caveat: all markets are local. So, what occurs in any local market doesn't necessarily jibe with a national number. (For instance, a large slice of fewer housing starts in June was centered on the South.) Still, we would like to see more purchase activity, especially purchase activity driven by the owner-occupied buyer.

Fortunately, rates are still very favorable for anyone seeking financing. Bankrate.com's national survey has the 30-year fixed-rate conforming loan pegged at 4.3%, about where it has been for the past month. Freddie Mac's survey has the 30-year loan at 4.13%.

To be sure, mortgage rates have shown little inclination to go anywhere, but another month or two of 200,000+ monthly job gains could easily (and quickly) set rates on a path to higher ground.

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.

Tight credit is frequent lament. In a Redfin survey , 16% of respondents stated that difficulty in obtaining financing was a challenge in the second quarter of 2014 compared to 8% in the first quarter.

This might be the perception, but the reality is that credit is gradually becoming easier to obtain, and that's been the case for the past two years. The Mortgage Bankers Association Mortgage Credit Availability Index continues to creep higher. In June, the index posted at 115.8 compared to 115.1 in May, which was better than the 113.8 in April. The index was set at 100 in March 2012.

To be sure, the younger crowd still has some difficulty with financing. As we noted a couple weeks ago, high student- loan debt is an issue. Obviously, that drives up the debt-to-income ratio. That aside, the issues aren't materially different for younger people today compared to younger people of previous generations. When starting off in life, most of us lack assets and have to scrimp to get head. That hasn't change.

The good news is housing continues to change for the better for all age groups. Price appreciation is falling back in line with historical norms. The prospect of slower price growth will bring more homes to market; there will be less incentive to hold out for a higher price. This, in turn, will further slow price growth.

The bottom Line: More people will be able to afford a home, and more funding will be available to those who want to buy a home. That's good news for everyone .

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.

Bill Gross Just Bought $60-Million Worth of Bonds: Why That's a Big Deal

The name Bill Gross is meaningless to most Americans. For those in finance, it's different. The name is universally known, because Bill Gross is the preeminent bond investor in the country. Specifically, Gross manages the $270-billion PIMCO Total Return Fund Institutional closed-end fund, which is the largest bond fund in the United States.

Gross' actions attract attention. This past week, he attracted considerable attention when it was revealed he had poured $60 million of his personal wealth into bond funds he manages. This $60 million is on top of the $140 million he already has invested in these funds.

In short, Gross in betting in a big way that low interest rates will remain low for quite a while longer.

When you look at the yield performance on the 10-year U.S. Treasury note over the past six months, it's difficult to disagree with Gross' bet. Yields have actually shown more of an inclination to go lower than higher.

The 10-year Treasury note is a good proxy for mortgage rates, particularly the 30-year fixed-rate loan. If you lack access to immediate mortgage information, a quick glance at the yield on the 10-year note (readily accessible at Yahoo! Finance) will give you a good idea to the direction of rates.

As for the actual 30-year fixed-rate loan, it remains subdued. Bankrate.com had the 30-year loan averaging 4.31% for the past week, a slight increase over the previous week. Freddie Mac had it at 4.15%. Over the past day or so, the rate has actually drifted a little lower.

Last week, we cautioned that another strong jobs report – which we got – would pressure rates to rise. Rates rose, but only by a few basis points. That interest rates remain low in the face of improving job prospects (which is indicative of an improving economy) suggests there is little impetuous for interest rates, in general, and mortgage rates, in particular, to rise.

As for our prediction of 5% on the 30-year fixed-rate loan by the end of the year? Anything can happen, but it's a more distant target than it was at the beginning of the year. That said, we still have nearly six month until Dec. 31. By October, the Federal Reserve is expected to have ceased buying Treasury notes and mortgage-backed securities (MBS). What's more, the Fed will likely cease or cut back reinvesting interest and principal from maturing notes and MBS into more notes and MBS.

Basically, this means that the Fed – a key factor to low mortgage rates for the past six years – will be a much smaller player as we progress through the fourth quarter. What this means to the direction of interest rates is anyone's guess. At least we know what Bill Gross' guess is – rates will remain low. But, of course, that's subject to change.

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.

Spiders.

If that word sends shivers down your spine, you’re not alone. According to a recent BrightNest poll, 85 percent of people Hate spiders with a capital H. But just because the eight-legged arachnids aren’t welcome in your home doesn’t mean they’ll always stay away.

To keep spiders out of sight and out of mind, try one of these natural deterrents before reaching for the chemical spray.

Here are five chemical-free methods to rid your home of spiders:

1. Essential Oils

Essential oils in scents like eucalyptus and peppermint are basically spiders’ worst enemy, because they find the intense smells overwhelming. Fill up an 8 oz. spray bottle with water and add about 15 drops of the oil of your choice. Spray the solution in doorframes, floorboards, bookshelves and any other small crevices. See ya, spiders!

2. Chestnuts

Believe it or not, chestnuts secrete a chemical that spiders can’t stand, so place chestnuts along your windowsills, under the fridge, in dark cabinets and wherever else you frequently see eight-legged enemies. Tip: This only works if the chestnuts are fresh, so it’s best if you store chestnuts in the fridge. Switch out your chestnuts on a weekly basis.

3. Vinegar

In addition to keeping colors fresh in the laundry and elminating mold, white vinegar is a spider-fighter, too! To fight arachnids, combine water and a dash of white vinegar in a spray bottle. Then, spritz doorframes, windowsills, under cabinets and anywhere else you think spiders could enter your home (like a doggie door).

4. Citrus

Spiders hate citrus: lemons, oranges, limes – you name it. To spread citrus throughout your house, rub orange peels on any surface where spiders could creep around or fill a spray bottle with water and citrus juice for a natural-deterrent spray. For more ways to clean with citrus, read: Power to the Lemon: 10 Amazing Household Uses.

5. Keep It Neat

Spiders love to camp out and spin their webs in cozy crevices. To prevent this, dust often and keep clutter to a minimum, especially in small spaces like cabinets and drawers. Flatten and recycle cardboard boxes and empty paper bags. Use the hose of your vacuum to clean floorboards by running the hose along where the floor meets the wall and along the edges of furniture.

What can unstick a zipper, remove stains and kill bugs on contact? No, it’s not Superman—it’s Windex!

Skeptical? Check out nine of Windex’s most impressive hidden powers:

1. Cut Through Grease

You know that pesky grease on your stove and pans that requires so much scrubbing to remove that you’re sore the next morning? There’s an easy fix: apply 2-3 sprays of Windex to the greasy area and let it sit for 15 minutes. Then, wipe it with a rag and the grease will slide off like butter. Note: Be sure to thoroughly wash your pans with dish soap before cooking again.

2. Unstick a Zipper

Spray 1-2 sprays of Windex on the area where the zipper is stuck. It acts as a lubricant. Slowly begin pulling the zipper back and forth until it starts it’s normal zipping duties again.

3. Add a Streak-Free Shine to Stainless Steel and Tile

Stainless steel and tile (especially tile floors) are prone to streaking, which is pretty irritating while you’re cleaning. Use Windex on countertop tiles and stainless steel appliances to find that elusive streak-free shine.

4. Actually, Add Shine to Almost Any Surface

Turns out you can use Windex on whatever surface you want! Looking to clean the kitchen in a pinch? Spray Windex on the countertops, fridge, stove top and sink. Then, quickly run a rag over everything. You can tell your houseguests it took all day – we won’t reveal your secret!

5. Clean Electronics

Windex can be used on the outer shell of electronics like DVRs, cable boxes, TVs, your laptop or desktop computer and lamps. It will pick up dust and leave your devices sparkling clean. However, we recommend avoiding the screen entirely!

6. Stain Remover

Yes, you read that correctly. Windex can be used on fabrics and carpet to remove most stains including coffee, food, drinks, blood (gross, but true), grease and oil. For small clothing stains, use two sprays and let the Windex sit on the fabric for 5-7 minutes. Then, throw it in the washer. If the stain is larger (about the size of your fist), try 5-6 sprays.

Use the same amount of Windex for carpet stains and lightly dab your carpet with a paper towel or clean rag. It may take a few rounds of spraying Windex and dabbing before the stain is gone, but if you persevere, it’ll work!

Tip: Test a small amount of Windex on an inconspicuous area of the fabric or carpet to be sure it won't damage the material before going gung-ho on the stain.

7. Calm Swelling

Did you know that Windex can be used to remove things like stuck wedding rings? It’s true! Windex reduces swelling. Apply 1-2 sprays to a swollen finger and after a minute you’ll be able to slip your ring off. Once your swelling goes down, make sure to wash the Windex off of you skin and jewelry.

8. Bug Deterrent

Windex works as bug spray for ants, flies, stinkbugs and most other creepy crawlers you will occasionally find around the house. However, we recommend that you only use Windex to kill bugs on contact, not as a preventative measure.

9. Clean a Clogged Printerhead

Your printerhead is the part of the printer that attaches to the ink cartridge and applies the ink to the page. They’re pretty temperamental, and get clogged easily especially if you have an older model.

If this happens, first turn off your printer. Then, wet a paper towel with 3-4 sprays of Windex, remove the ink cartridge, and place the paper towel on the printerhead. Leave the paper towel for 24 hours and make sure the printerhead is dry before you turn the printer back on and try to print with a new ink cartridge.