Real Estate Information Archive

The number of homes sold in Central PA and the greater Harrisburg area increased slightly (3%) over the sales results for 2013 continuing a positive trend we have experiencing over the past few years. But the increase is smaller than the approximately 10% increase in sales in 2013 over 2012. But there is also some additional positive news in that the average sales price increased to $187,076 in 2014 and the days on market before a home is under contract now stands below 90 days.

What does 2015 look like? I think the trend will continue to look positive with respect to the number of sales and the average sales price. Although I do not expect these numbers to go off the charts, I am anticipating a steady rise similar to the years prior to the financial crisis. Why?  Some of the increase, I believe, will come from a decision that the federal government (FHFA) made recently to decrease the insurance premium on FHA mortgages that would save a borrower approximately $75 per month on a $180,000 mortgage. And since approximately 15% of all sales in 2013 and 2014 were financed by this type of financing this should provide some stimulus to the sales market. And although higher mortgage interest rates have been called for by the experts for the past year, the current interest rate for a 30 year fixed rate mortgage is between 3.75 – 4.00%, which does positively impact affordability. I do though anticipate mortgage rates to increase, by how much I do not know but it will impact some potential buyers.

All that said you can see a positive trend has emerged and I anticipate it to continue in 2015. If I can be on any assistance or provide any information please contact me at your convenience.

Don Roth

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.

The information compiled by me came from our local Multiple List which comprises primarily Cumberland, Dauphin and Perry counties with some additional info from Lebanon, Lancaster and York Counties.

Mortgage rates in the U.S. declined, remaining at a 16-month low as more affordable borrowing costs fuel an increase in refinancing.

The Bloomberg article, http://bloom.bg/1zm4zZB, discusses what mortgage interest rates can accomplish for homeowners looking to refinance their current mortgage. But I have found that the lower the mortgage interest rate goes more potential home buyers come to the market looking for “good deals” when purchasing a home. Well, good deals are in the eyes of the beholder. In most cases the deal means what is it going to cost on a monthly basis to live here? With the average selling price in the greater Harrisburg area being close to $190,000 a difference of 3.875% (current rate) vs 4.50% (high this year) means that you could save approximately $3600 - $4100 per year. AND that means it stays in YOUR pocket. And the same can be said if you are looking to refinance your current loan.

Why mention this now? It has been shown that there can be less competition at this time of the year because many are contemplating the holiday season. Less competition means you also may be able to negotiate a better purchase price from the seller. So never decide that you cannot purchase a home at this time but when you consider lower mortgage interest rates and probably less competition it may be the time to get serious. And yes I strongly suggest a consultation with a bank or mortgage lender because they can assist you in attaining home ownership. In addition, if you are looking for a source of actual homes available for sale in the Central Pennsylvania market please click here to  see the available inventory.  

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.

When pundits discuss mortgage financing, they frequently tout the money saved in interest when paying cash. But is that worth touting?

Let's say we have two home buyers: each has $100,000 and each buys a $100,000 home. One pays cash; the other puts $10,000 down and finances the remaining $90,000 with a 30-year fixed-rate mortgage at 4.25%. Both stay put, and 30 years later the 30-year mortgage is paid in full. Over the 30 years, the cash buyer obviously incurred no interest charges. The financed buyer, on the other hand, pays over $69,300 in interest over the life of the loan.

It appears the cash buyer comes out ahead, but does he?

Keep in mind that the cash buyer did not have use of the $90,000 like the financed buyer did. Let's say the financed buyer took his $90,000 and bought 5,000 shares – $18 a share – of a real estate investment trust (REIT) that pays $0.125 in dividends each month. We'll assume there is no dividend increases (which would be unlikely in the real world).

Each month, the REIT pays the financed buyer $625 in dividends. In a year, the REIT owner collects $7,500 in dividend income. Over 30 years, the REIT owner will collect $225,000 in dividend income.

In other words, opportunity costs must be factored into the equation. By financing his home with a low-rate loan, the intelligent investor/home buyer was able to use his money to buy a cash-generating investment that far exceeded his interest payments.

This example shows that opportunities and opportunity costs must always be factored into a financial equation. When this occurs, the cheaper option can frequently be shown to be the less financially profitable option.

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.

These days, "hipster" or "up-and-coming" neighborhoods are basically buzzwords for a good investment, but there can be another side to the story. We asked one woman to share her tale. Her identity, the neighborhood and the city she bought in are left out of the story to respect her privacy and the privacy of the neighborhood residents. 

“You’re going to love this neighborhood. It’s really up and coming!”

You know how they say “if it’s too good to be true, it probably is?” Well, I learned that hard way when I bought a house in a neighborhood with uncertain prospects.

I did love the house, but I knew for sure I’d never set foot in that neighborhood before. That should have been my first warning sign.

From there, things just went too smoothly. I easily got the financing. I looked at a map and realized this house in the “up-and-coming neighborhood” bordered a section of town I loved and knew well. And the price was unbeatable.

So, I moved in.  What I didn’t realize at the time was that I was essentially gambling with my home equity. If the neighborhood didn’t improve, neither would the value of my home.

My realtor made a lot of claims. “A florist!” “A coffee shop!” “Health care across the street!” “A new gym!” Her insiders had told her all these things were in the works, and if I moved in now, I could be the lucky investor in a newly refurbished neighborhood.

As you may have guessed by now, this isn’t exactly how it turned out.

The six years I spent in that house were actually pretty good. I loved the layout of the house and the fact that I could see the city skyline out the kitchen windows. Eventually, I got to know a few of my neighbors and even count them as friends. There were spots in this “up-and-coming” location that I did grow to enjoy, but they were all things that were already there before I bought the house.

The awesome shops that the realtor said were “just about to go up” never went up. The gym never opened its doors. And the clinic we were told bought the land across the street never closed on the property. Oh, and the coffee… I had to bike two miles to the closest one.

So while I was up in the neighborhood, nothing was definitely coming anytime soon. When I needed to move, I realized I gambled with this home and lost. I was easily $20,000 under water and prices in my neighborhood had gone down since I moved in, despite the fact that I had spent thousands on improving the place while I was there.

Blame the recession. Blame tough financing for new construction or the city council. It doesn’t really matter. Ultimately, I blame myself. I bought the house because I thought I was investing in a neighborhood that was about to be my dream “place” in my city of choice. I bought into a dream that was never going to happen.

It’s fun to dream of living in the perfect neighborhood before anyone else. It’s even better to imagine the payday you may get from selling a home in said neighborhood. But beware of rhetoric. Most awesome neighborhoods don’t happen in a year or two. It takes decades for that kind of cultural evolution. Next time, I’m buying a house in the neighborhood I love instead of waiting for the fantasy to come true.

I’ll do the following things before signing on the bottom line. Lessons learned:

1. I wish I’d had more frank conversations with my realtor about the likelihood of these new establishments. I didn’t question the “insider information” at all. I wish I pushed my realtor a little more to find out exactly who these sources were and how likely the change would be.

2. If I were to do it again, I’d think more about the neighborhood as it is today rather than how it may be in five years. If I knew the neighborhood wouldn’t change, I probably wouldn’t have moved in. Always weight your options and ask yourself, if the neighborhood didn’t change, would you be okay with it?

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.

Courtesy of Jessica Regan.

If moving all by yourself sounds downright awful, it’s time to hire a moving company. Professional movers will help make the entire process faster, safer and easier – but only if they’re top-notch! Hiring the right movers is crucial to making sure you have a happy move instead of a horrible one.

Here is a six-point checklist for hiring a great moving company:

1. Look beyond the hourly rate.

When choosing a moving company, it may be tempting to pick the one with the lowest hourly rate. Resist the urge! If a mover is charging less than the competition, they’re probably going to cut corners wherever they can, which means your furniture could wind up sporting a new scratch or two.

2. Do your homework.

Before you call a company, go online to see if you can dig up any dirt – or at least read positive reviews. Check the moving company’s complaint history, as well as their standing with the Better Business Bureau.

3. Ask for credentials.

Whether you’re moving out of state or just down the road, the moving company should have some type of moving license, period. Always ask to see their proof of insurance and proper licensing. Moving license requirements will vary state by state, but any company that moves across state lines should have a specific Department of Transportation (DOT) number assigned to them. Tip: You can check for a moving company’s license at ProtectMyMove.gov.

4. Get several estimates.

Once you’ve narrowed the search down to a few companies, ask for a written estimate from each. This estimate should be based on an actual inspection of the stuff you want to move. If a business isn’t willing to send a person to your home to do an estimate, cross them off the list! Movers that only offer to give quotes over the phone can often underestimate the total and may try to charge you for the difference.

5. Avoid hidden fees.

Make sure the movers are aware of everything that needs to be moved to avoid any added charges. The cost of your moving fee may increase if any big furniture gets added at the last-minute, so make sure the movers have an itemized list before they show up. Also, if the moving truck has trouble finding parking by your place, they can charge for the extra distance, so plan ahead!

6. Ask questions about the contract.

Take a few minutes and read the moving contract carefully before you sign. It should detail specific rates, liability, delivery dates and claims protection. If you see something that looks suspicious, trust your instincts and ask about it. Once you’ve signed, keep your copy of the contract until the move is complete, and you’ve fully unpacked.

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.

The cost of buying a Harrisburg PA home is going up. What's behind the rise in interest rates? Is now still a good time to buy? Here's an interesting video explaining a little bit about why mortgage rates are rising. There's also a little bit in here about how "staying on the fence" could lead to a higher monthly payment.

Rates are still historically low and it's a great time to buy. Wondering if now is the time for your to buy a Harrisburg PA home? Give us a call! We’ll help lay out your options so you can make an informed decision.

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.

House hunting is a little bit like going on a whole bunch of first dates. In both situations, you’re on the lookout for deal breakers, like a creepy attitude (bad neighborhood), nasty breath (moldy basement) and no personality (“blah” décor). But just like the dating game, first impressions can be a deceiving, and not every cliché “house problem” is dump-worthy.

Here are five flaws you may find during a house hunt that aren’t necessarily deal breakers:

Wall-to-Wall Carpet

You don’t often hear people say that they “love” wall-to-wall carpet, but people’s tolerance for the look varies. If you really can’t stand the shag – but you’ve found a home that’s perfect otherwise – give it a chance! Beneath that carpet is probably a beautiful floor with endless possibilities. The cost to tear up and replace carpet with an inexpensive alternative (like vinyl) is generally $15-$20 per square yard, so this foible can be fixed without breaking the bank.

Popcorn Ceiling

This rough acoustic surface (also called “cottage cheese” ceiling) is basically the polar opposite of modern chic. But that doesn’t mean your dreams of a sleek décor scheme can’t come true! Removing popcorn ceiling yourself is labor intensive, but very doable. Or, you can hire someone to do it for you – it generally costs $1.30-$2.60 per square foot to remove. Note: If the house you’re looking at was built before 1979, popcorn ceiling removal is more complicated (and expensive) due to the risk of asbestos.

An Old Roof

A house with a roof more than 10 years old tends to trigger alarm bells. After all, old roofs can quickly turn into leaking roofs. But remember: old doesn’t mean broken, and the age of the roof should reduce the asking price of the house. Important: If you purchase an old-roofed house, it is important to budget for an eventual replacement, which can cost anywhere from $2,000 to $10,000. Different roof surfaces have very different life expectancies, so do some research about your roof and plan accordingly.

A Slightly-Too-High Price Point

If you’ve found your dream home, but it costs about $5,000 more than you planned to pay, don’t walk away immediately. Five grand is nothing to sneeze at, but when you compare it to the total value of your home, it’s less significant. Plus, there are two possible ways to earn back this amount of cash:

1. See if there are any homeowner tax incentives for which you’ll qualify.

2. Ask your real estate agent if they’d be willing to take a small cut in their commission given the higher price (it’s in their best interest to get a deal done, so they may be receptive to this).

No Central AC

Hear us out! If you’re house hunting in the middle of July, the idea of a sans-AC existence can seem like purchasing a lot on the seventh circle of hell. But a few window units (or some well-placed fan action) can cool off a lot more effectively than you think. Plus, installing a central AC unit can be done for as little as $2,000, which isn’t that bad if the lack of AC took a chunk out of the initial price. 

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.