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Displaying blog entries 11-13 of 13

Tread a Little More Carefully

Wednesday, June 5, 2013
by Don Roth

During the depths of the housing sell off, when the market was mired in misery, we were one of the few voices of hope. Back then, we were convinced the market would recover and that the prices that prevailed offered exceptional opportunity. Fortunately, we were right on both accounts.

We're still bullish on housing; plenty of opportunities still abound. That said, not all markets offer the same opportunities: some markets are good values, others less so.

We know that many Realtors and agents are active in housing on their own behalf. Renting, rehabbing, and flipping are natural outgrowths of selling. After all, it's rationally worthwhile to take advantage of unique insight and information.

It's also worthwhile to know who's in the market. We've noted in past issues the influx of institutional investor money that has entered residential rental real estate. The large hedge fund Blackstone alone has spent $4.5 billion to buy over 26,000 single-family homes to rent.

The large influx of money has driven up home prices in some markets to the point where value is tenuous, which has prompted some money to leave. Bruce Rose, CEO of Carrington Holding Co., was among the first investors to put institutional money into single-family rentals, but now he's reversing course because rising prices have lowered returns to the point where the risk is no longer justified in the markets where he operates.

The point we want to emphasis is that value matters (it always has), and that a growing number of markets today offer fewer values compared to what was offered in the recent past.

 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.

Harrisburg PA Mortgage Market Recap – June 5, 2013

Wednesday, June 5, 2013
by Don Roth

Mortgage rates have been on a tear lately, and by that we mean they've been rising at a precipitous pace. The rise in the 30-year lending rate has been particularly steep.

Many markets are seeing the highest lending rates of 2013. Other markets are seeing the highest rates over the past 12 months. So what's going on; why the dramatic increase?

Most market commentators point to the Federal Reserve, and when they point to the Fed they frequently invoke the word “tapering,” which refers to the Fed withdrawing from the mortgage-backed securities (MBS) market. Over the past couple months, the Fed's MBS purchases have declined modestly. At the same time, a growing cadre (though still a small minority) of Federal Reserve bank presidents have expressed the need for the Fed to cease purchasing MBS.

The market's reaction has been to sell fixed-income investments, which has caused yields to rise, including the yields of MBS. Because mortgages are the source assets in MBS, it's only natural that mortgage rates have also risen.

Rising rates have taken some steam out of the refinance market. After two sharp weekly declines, refinance applications fell another 12% nationally last week, according to the Mortgage Bankers Association. Refinance activity is the lowest it has been all year.

Purchase application activity has shown more resilience. After falling moderately in the prior two weeks, purchase applications rose 3% in the latest reported week. The fact that purchase activity hasn't been muted by rising rates is reflective of strong housing demand and a strengthening economy.

In the days before the Federal Reserve was active in the mortgage market, rising rates would spark an increase in activity for fear of rates moving higher still. Today, many market watchers expect a rate increase to be followed by a pullback, believing the Fed will again intervene to reverse a rising trend.

Those who head for the sidelines when rates rise might be on to something. To be sure, we believe that higher rates are in our future, but not necessarily in our immediate future. In other words, the thesis behind “tapering” could be overdone; it's not that the Fed is withdrawing from the MBS market, it's that there were simply fewer MBS for the Fed to buy.

We say that because we experienced a lull in mortgage loan originations in March; fewer mortgages means fewer MBS the Fed could buy. But in April, we saw a burst of refinances. Many of these loans will have closed in May, which will lead to more MBS coming to market, and more MBS the Fed could buy.

In short, we're not sold on “tapering” as the Fed's new de facto monetary policy. We need to see a couple months of evidence before jumping on the bandwagon. So don't be surprised if lending rates reverse course and revert to lower ground in coming weeks.

 

 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.

Home Maintenance: How To Find a Stud

Monday, June 3, 2013
by Don Roth

The reliable way to find a stud is by using a stud finder tool – a basic model costs about $10-$20 at your local hardware store. If you don’t have one, don’t give up hope just yet. Try this easy stud-finding trick!

hammerYou’ll need: painter’s tape, one strong refrigerator magnet (a one-inch diameter is perfect), scissors, pencil, ruler (optional)

1. Cut a six-inch strip of the painter’s tape.

2. Place your magnet in the center of the painter’s tape.

3. Fold the tape over the magnet onto itself. It should form a small sling with the magnet at one end. Make sure there is enough tape on the magnet-free end – you need to be able to comfortably grip the tape.

4. Move your magnet-stud-finder along the wall. Studs are wood, but the nails holding the drywall into the studs are metal! When you drag it over the stud, the magnet will stick to the wall!

5. Mark where the magnet stopped with a pencil and you’re done! You’re ready to hang your wall art.

6. If you want to find multiple studs, measure 16” to the left or right of where your magnet sticks. Studs are typically located 16” apart in a home with 8-foot ceilings.

Tip: If magnets and tape seem like too much effort, or this doesn’t work for you, just look for a wall outlet. Studs will generally be vertically aligned with the outlet. Think of it as the fast-game version of finding a stud.

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.

Displaying blog entries 11-13 of 13

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