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Central Pennsylvania Real Estate Report June 2010

Thursday, July 15, 2010
by Don Roth

Have the real estate prices in the Greater Harrisburg market begun to stabilize? The answer right now looks that we, as I have been saying, are getting close; but my only concern is that we need one or two more months of validation. When comparing the number of homes sold in June 2009 vs June 2010, there was a 3% increase in the numbers and a 7% increase in the average sales price to $200,419. The average sales price did increase from previous months average that had been in the $180’s, so we just want to be sure that this is not an anomaly.

There are three primary reasons that one may say caused the gain; 1) the effects and benefit of the Home Buyer Tax Credit; 2) there are perceived values in the market and; 3) mortgage interest rates remain extremely low, such as 4.75% for a thirty year fixed rate mortgage. But something else occurred, the higher end (homes that sold in excess of $300,000) of the market improved substantially and the number of homes over $400,000 had a more dramatic increase on a year over year basis, consisting of 14% of the number of sales in 2010. So one month does not make a trend, but there are positives that are beginning to appear. I will keep updating the movement of the market and if you have any specific real estate questions, please contact me at Don@DonRoth.com. Enjoy your summer.

 

Average Sales Price
West Shore
School District
June 2009
June 2010
Days on Market
Camp Hill
$207,105
$210,822
47/69
Cumberland Valley
$275,774
$274,719
81/99
West Shore
$185,265
$176,950
64/60
Northern
$241,428
$215,042
98/113
Mechanicsburg
$179,917 
$213,903
64/52
East Pennsboro
$222,441
$177,397
81/53
East Shore
Central Dauphin
$175,821
$218,610
63/111
Derry Township
$244,788
 $268,814
86/72
Harrisburg
$ 85,580
$ 75,581
95/102
Lower Dauphin
$233,382
$220,843
58/90
Middletown
$138,847
$178,515
106/130
Steel High
$ 76,880
$ 71,975

153/141
Susquehanna Township
$173,245
$175,716
70/96

When reviewing the yearly comparisons between years for different school districts, there is usually a relatively small number of homes sold and when you have a few higher priced home sell, the month to month variance can be greatly exaggerated, up or down. Again, if you have any questions, please contact me at your convenience.

2010 Tax Credit Availability; Time is Running Out

Monday, March 1, 2010
by Don Roth

Just a reminder to all the buyers that wish to take advantage of the home buyers tax credit that time is running out quickly. In order to take advantage of the creidt you must have an executed contract dated no later than April 30, 2010 and with a settlement occurring no later than June 30,of this year. There has been some conversation about the extension of the credit but from everything that I have read there is little, if any support in Congress at this time to extend the deadline. Naturally, things change cahnge but i do not expect that to happen again.

As a reminder the First Time Home Buyer Credit is up to $8000 and the first time home buyer is defined as someone that has not owned a home in the last three years. The $6500 tax credit is aimed at people who have lived in a home for at least five consecutive out of the last eight years. There are income considerations for both credits but many potential buyers will be able to qualify for most, if not all of the credit. So if you are considering a home purchase and you combine the tax credit with the very attractive low interest rates, why wait act now before the credits are history.

 

2010 Home Buyer Tax Credit – Take Advantage Before It Is Too Late

Monday, January 11, 2010
by Don Roth

With the beginning of the New Year, many potential home buyers should make a resolution to purchase a home and have the ability to take advantage of the Home Buyer Tax Credit. Extended by Congress in 2009, this credit is available to buyers who sign a purchase contract before April 30, 2010 and settle on the home prior to June 30, 2010.

There are two eligibility categories designated by the Tax Credit Law:

  1. First Time Home Buyers. Defined as a buyer that has not owned a home for the past three years and the credit is up to $8000 or 10% of the purchase price of the home. The income restrictions are $125,000 for a single buyer and $225,000 for a couple purchasing the home. One of the more attractive conditions of the law is that the credit is truly a credit with no repayment provisions as long as you own the home for three years. If you sell prior to the anniversary, the total credit amount must be repaid.
  2. Current Home Owners who may want to purchase a home. The credit is $6500, and the home being purchased must be the buyers’ permanent residence. If a buyer wants to continue to own the home they are currently residing in, that is allowed, but again the home being purchased must be the new residence and be occupied by the buyer. One other condition in this category is that the buyer must have lived in their previous residence for five consecutive years of the last eight years. The other conditions that pertain to the First Time Home Buyers are similar.

Why is this credit so important? One of the reasons Congress extended the credit is to stimulate the housing market in the beginning of 2010. Also, with prices of homes in many areas of the country at or below previous levels it is anticipated that buyers can purchase a home at an attractive price and possibly give current homeowners the opportunity to do the same. And with mortgage interest rates still at an attractive level, possibly provide more purchasing power to a buyer.

This bill passed by Congress is the third version of the Home Buyer Tax Credit and from everything that I have seen or read Congress is not likely at this time to provide any further extensions in the future. Naturally, with any specific tax questions, it is highly recommended that you talk to a tax professional. And if you have any questions concerning available real estate for sale in the Greater Harrisburg area, please contact me at Don@DonRoth.com.

Refinancing a Home Purchased One Year Ago

Wednesday, February 4, 2009
by Don Roth

Greg posted this question on Trulia Voice this morning and my response follows:

My wife and I bought a 2 unit duplex about a year ago. We went FHA and got locked in at a rate of 6.25. We both have 710 credit scores. We do not have much equity in the house yet. But with rates now around 5 % is it worth us to try and refinance and if so who would you recommend?

Greg:

I would first talk to the loan officer that you originally secured your current mortgage through and see what they may be able to do for you. The difference between the two rates per $10,000 is about $8.00 or $80.00 per month. Before you refinance, find out what, if any, costs you are going to incur for the refi. Then take into consideration how many years you are planning to remain in your home and see how long before you begin realizing the savings. In many cases, it can be four, five or six years, again depending on what your costs can be (ie origination fees, new title insurance, etc.). Using my above example of $80 per month on a $100,000 mortgage and say your refinacing costs are going to be $4000, you would need to be in your home for at least 50 months before you started realizing a savings from the refinance. And I know it is difficult to anticipate how long you are going to be in a home, but sometimes it is better to pay the higher rate than refinance, especially if you have to include some of the closing costs into the refi. There isn't a pat answer, but look at the costs versus what you will be saving and as additional piece of information, there is a proposal from The National Association of Realtors® to have a program where mortgage interest rates would be pegged at 4.5% for a certain period. And this proposal has gained some traction in Washington so maybe watch what comes out of D.C. before you make a decision. I hope this helps you in your decision.

Don Roth

Lower Mortgage Rates in Central Pennsylvania Are Here

Wednesday, November 26, 2008
by Don Roth

First, as we approach Thanksgiving, I want to wish the happiest of times to you, your families and your friends. We have been through some interesting times in the last year and it appears that this trend will continue for the foreseeable future. Let us count our blessings and look for a brighter tomorrow.

I am sure many people saw the news that the Federal Reserve enacted a second large multibillion dollar initiative in hopes of stimulating the housing market for both buyers and sellers in this challenging market. What does that do immediately for you? Well, the initial reaction was to reduce current 30 year mortgage rates down by about .75% or a savings of $72 a month on a $150,000 mortgage or a yearly saving of $864 a year. Not a lot but better in your pocket than the lenders.

If you are considering the purchase of a home, this may be the market of opportunity for you now and for the next few months. While no one can accurately predict the bottom of a market, many will be upset that they waited too long to buy a home. If you are a current owner, you may say that your home isn't worth as much as last year and that may be true. However, if you are considering moving up the home, what you are looking for isn't worth as much as it was last year. There are many opportunities that will be available and if you are considering a move, you should begin your planning now so you are adequately prepared. Just remember the Greater Harrisburg, Carlisle and Hershey real estate markets have been one of the most stable market in the nation - put that to your advantage.

Displaying blog entries 191-195 of 195

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