As we begin the first week of March, we are seeing the first signs of spring; the sun for more than a few minutes a day, the robins are out and we are not waiting for the next snow storm or a high wind warning. The same can be said of the local real estate market. Although the number of homes sold in February of 2010 is down by 15%, the average sales price comparing 2009 versus 2010 is up 11%. The increase in the sales price is partly due to the depressed level of last year due to the extreme uncertainty that was caused by the meltdown in the financial markets in late 2008 and naturally continuing into 2009. The average sales price in the region as reported by the Central Penn Multi List was $167,335 and in 2010 it is $185,483, and this average sales price was relatively consistent throughout the later months of 2009. In my opinion, the sales numbers would have been stronger if it had not been for the two snow storms that slowed down not only auto travel but foot travel, ie walking in homes that were for sale. But in the last two weeks, I have seen an increase in at least more inquiries across the board up to the $350,000 asking price, with the higher priced homes still seeing low activity.

What is in store as we go into the spring? We will still experience a slow rebounding market, but in light of that there are some promising signs just as spring arrives. We still have extremely attractive interest rates on 30 year mortgages, right at 5% and the home buyer tax credit is still available for contracts written before April 30 and settling before June 30 of this year. And there is an abundance of homes for sale, in excess of 4300 across all price ranges. AND there is plenty of mortgage money available and many, many lenders willing to lend to qualified borrowers. I am constantly asked whether the tax credit will be extended and my answer is I do not think so, but it could depend on the prevailing winds in Washington, DC. I would not want to rely on a definite maybe at best. Both buyers and sellers have great opportunities in the current market because as we go through 2010, one thing is almost certain. Mortgage rates will increase, which may place a lid on the activity, although it may be modest.

True, the current real estate market is not like it was three years ago and probably will never return to those levels. But this market is much more stable than it is in many parts of the US and I do not anticipate that to change. So my advice is naturally embrace the coming of spring and possibly a slightly improving real estate market in the Central Pennsylvania area.

 

Average Sales Price
West Shore
School District
February 2009
February 2010
Days on Market
Camp Hill
$165,491
$140,667 
59/85
Cumberland Valley
$258,211
$223,603 
96/160
West Shore
$179,891
$178,161
67/101
Northern
$188,824
$272,229
107/157
Mechanicsburg
$162,956
$171,849
78/84
East Shore
Central Dauphin
 $185,483 
$200,094
92/84
Derry Township
$206,445 
$313,973 
79/188
Harrisburg
$ 60,680
$ 76,733
59/85
Lower Dauphin
$241,450 
$246,616 
113/117
Middletown
$112,860  
$113,300 
63/87
Steel High
$ 69,916 
$ 68,750

96/62
Susquehanna Township
$150,693
$155,174
64/70