Real Estate Information Archive

In the depths of the housing meltdown, we plumbed many media outlets for the contrary opinion. That is, the opinion that offered a glimpse of hope. Back then, the contrary opinion was difficult to come by.

How times have changed. Month after month, the data show continued home-price improvement. CoreLogic added to the string this past week. Its data show home prices rose for a 12th consecutive month in February. Year over year, CoreLogic reports prices rose 10.2% to post the largest annual gain in seven years.

The strong run in home prices has us wondering if they are getting ahead of themselves. At the national level it appears unlikely. Another data provider, Clear Capital, expects prices will rise 2.6% for all of 2013. Such a modest advance arouses little concern; it barely exceeds the annual rate of consumer-price inflation.

That said, real estate markets are local markets. When thinking locally, there might be cause for concern. For example, certain markets in Arizona, where home prices have appreciated 18.6% statewide over the past year, and in California, where prices have appreciated 15.3% statewide, are likely approaching a point where buyers should proceed if not with caution at least with eyes wide open.

There are few mitigating factors. Affordability is one. Lender Processing Services estimates that home prices could jump as much as 35% without damaging affordability.

Mortgage rates are an obvious variable in the affordability calculus. Rates remain low, and likely will continue to remain low over the next couple weeks. Last week, we mentioned how events in Cyprus had investors scrambling to U.S. Treasury securities. Now that the Cyprus is yesterday's news, it appears events in Italy and Spain (centered on debt and bank capitalization) will keep money flowing into these haven securities.

So mortgages will likely remain near the current level, thus helping to keep home affordability high.

That said, FHA loans have become a little less affordable. On April 1, mortgage insurance premiums increased for the third time in two years. The increase is expected to raise average premiums by $130 per month.

On June 3, more changes are in store for MIP, which will further raise the cost of FHA loans for many borrowers. The point we want to emphasis is that potential borrowers interested in these traditionally low-cost loans would be well-advised to act sooner rather than later.

 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.

Yeah, spring! It’s just about time for longer days, warmer weather and poolside cocktails. But it’s hard to enjoy the perks of spring when flowers make you sneeze like a banshee and budding trees make your eyes water faster than the end of Titanic.

You can’t stop trees from pollinating or grass from growing, but you can keep allergens out of your abode! If allergies have arrived at your doorstep, follow these seven steps to minimize your symptoms.

1. Wash your bedding. Millions of dust mites and other types of bacteria may be using your mattress and pillows as a home! Remove and wash your bedding on a hot water cycle at least once a week, including your pillows. If you’re especially allergic to dust mites, consider encasing your pillows and mattress in dust-mite-proof covers.

2. De-clutter. During allergy season, it’s a good idea to de-clutter the rooms where you spend the most time, like the living room and bedrooms. Remove items that tend to collect dust like junk mail, old magazines and knickknacks.

3. Clean your curtains. Give your curtains a good sprucing by vacuuming them with a hose attachment and hand-washing them in cold water. Heavy drapes and curtains can easily trap dust, dirt and allergens.

4. Avoid feather dusters. Use a slightly moist cloth or a special dry cloth that will trap dirt when dusting your home. Feather dusters generally spread allergens around instead of removing them!

5. Keep shoes near the door. One of the easiest things you can do to reduce allergens in your home is leave your shoes at the door! According to the EPA, the bottom of your shoes can track in all sorts of germs and allergens, including pollen grains, mold spores and pet dander. Simply clear a space next to each of your exterior doors where people can place their shoes. Bins or wicker baskets work great for this!

6. Vacuum with a HEPA filter. Destroy dust mites by vacuuming your floors with a high efficiency particulate air (HEPA) filter at least once a week. Vacuums with HEPA filters trap very fine dust particles that other vacuums only re-circulate back into the air of your home.

7. Check your home’s humidity level. Humidity levels above 55 percent can foster mold and mildew growth, which triggers allergy symptoms. Measure your home’s humidity to determine if it’s at a healthy level. If your humidity is too high, it’s a good idea to buy a dehumidifier.

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.

Robert Shiller, co-founder of the S&P/Case-Shiller Home Price Index, has been issuing a warning the past couple months: Don't get snookered by rising home prices. In short, Shiller is skeptical that the price trend will last.

Shiller's doubts center on the Federal Reserve, which continues to purchase U.S. Treasury notes and bonds and mortgage-backed securities at the unprecedented rate of $85 billion a month. The Fed's purchases, which are financed with newly minted money, have kept mortgage rates low and liquidity (money supply) high.

This has obviously been good for housing, but Shiller's concern is that the Fed could be creating another bubble. We've wondered the same thing too. A lot of money is flowing into housing. Is that money distorting the market?

We think there are a couple extenuating factors. For one, the housing market is still operating at a sub-optimal level (sales and construction) compared to historical norms. And though mortgage rates are at multi-decade lows, many people are still unable to take advantage of them, thus keeping demand constrained (though we don't necessarily view this as a positive).

This is an unusual, even unprecedented, market, to state the obvious, but it's not a bubble market, and we don't expect it will become one any time soon.

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.

For the past year, we've been reporting on home prices generally moving in one direction – up. This is certainly preferable to the years leading up to early 2012, when we were reporting on prices generally moving in one direction – down.

As for the current price trend, the S&P/Case-Shiller Home Price Index shows prices continued to move higher in January. What's more, prices moved higher at an accelerating rate. All 20 cities the index covers posted price gains for the second-straight month. Year over year, prices were up nearly 10% – the largest annual increase in seven years.

Data from Lender Processing Services also support a sustained price trend. Its data, which focuses on non-distressed transactions in 15,500 zip codes, show the average home price increased 0.3% to $208,000 in January. Year over year, the average price is up 6.7%.

New homes are leading the price charge. Data from the U.S. Census Bureau show the median sales price of a new home soared to $246,800 in February, a 9% increase over the median price of $226,400 in January.

We're not surprised new home prices are surging. Demand is improving, thanks in part to more homeowners moving into a positive equity position. At the same time, there's a dearth of new homes on the market. The downside is that lack of inventory is hurting sales growth. The annualized sales rate of 411,000 new homes in February is 4.6% lower than the 431,000-home sales rate in January.

Inventory has improved, but not by much. New homes for sale increased to 152,000 units in February from 150,000 units in January. The combination of a dip in sales and a rise in supply put inventory at 4.4 months in February compared to 4.2 months in January. We expect low inventory will continue to restrict sales growth over the next couple months.

Sales of existing homes are also likely to remain restricted. Limited buyer choices have constrained contract signings. The NAR's Pending Home Sales Index dipped 0.4% in February. The index points to low-to-flat sales growth as we head into the spring selling season.

The upside to stagnating sales and increased demand is continued price gains. Rising prices will lift more homeowners into positive equity, which in turn, will motive more homeowners interested in moving to list their properties.

Rising prices will lead to more supply. We mentioned many times during the grips of the hard sell-off of 2008 and 2009 that prices would fall only so far before buyers would rush in to soak up the excess supply. Rising prices will have a similar salutary effect, only in reverse – rising prices, rising supply.

As for mortgage rates, we expect the trend to remain flat at the new lower level. The banking crisis in Cyprus sent money to U.S. Treasury notes and mortgage-backed securities, which helped reverse the rising-rate trend. We expect rates to hold these levels for at least a couple weeks. We say that because the influential 10-year Treasury note is again yielding below 1.9% (two weeks ago, it was yielding over 2%). The low yield should hold, because once the crisis in Cyprus passes, it's looking more likely a developing banking crisis in Spain will take its place.

 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.