Real Estate Information Archive

It's no secret that investors (rental-housing buyers) are responsible for much of the housing-market gains we've experienced over the past couple years. This has prompted many pundits and commentators to opine that we are turning into a nation of renters.

We don't believe it because many polls (from Freddie Mac and others) show people overwhelming prefer to buy than to rent, so we are encouraged to see the rise in purchase-application activity, which recently hit a three-year high.

We also like the beneficial social aspect of owner-occupied buyers. Neighborhoods composed principally of buyers tend to be more stable, because a neighborhood of owners instills a sense of community. If there are problems, neighbors are more willing to band together to seek a solution. Renters, in contrast, tend to be more transitory, and more prone to leave, so problems are more prone to fester.

Property upkeep is another benefit. Neighborhoods of renters have less tendency to maintain their home and the surroundings. After all, it's not their property. In addition, because the landlord is frequently absent, there is no one around to pick up the slack should renters become negligent in upkeep.

This isn't to bash renters or landlords, but we think it's beneficial to property values and to community cohesiveness to see a pick up in owner-occupied activity.

  Courtesy of Jessica Regan.

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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.

Of course, the trend we speak of is home prices, which continue to move higher. Not only that, they continue to move higher at a rate few commentators would have proffered when gauging the market this time last year.

To wit, CoreLogic's latest report shows home prices nationwide, which includes distress properties, increased 10.5% year over year in March. This was the highest year-over-year increase since March 2006.

It doesn't appear the trend is likely to reverse in the near future. CoreLogic's Pending Home Price Index indicates that prices are expected to post a 9.6% year-over-year gain for April, with prices rising 1.3% for the month.

To be sure, housing markets are local markets, and prices in many local markets are not accelerating at the national rate, but it's quite extraordinary to be experiencing price gains that were prevalent during the height of the housing boom.

Now, this doesn't mean another bubble is set to burst; many markets are rising from a considerably lower base than what prevailed in the early 2000s. That said, these price gains – especially in regions that far exceed the national average – should prompt us to view the market with a more discerning eye; value and price tend to move in opposite direction.

We've mentioned in the past that rising home prices will lift more owners into positive equity, thus prompting more of them to list their home. It's an economic maxim that higher prices lead to more supply, and that appears the case today.

Calculatedriskblog.com reports that for-sale inventory is up 12.2% for the year, a notable improvement over 2011 and 2012, when the peak increase was only 5%. More inventory should lead to more sales activity.

The trend in mortgage delinquencies and foreclosures also portends better days ahead. The Mortgage Bankers Association reports home loans that were at least one month late or in the foreclosure process dropped to 10.3% of mortgages in the first quarter, down from 11.25% in the fourth quarter and 11.33% from the first quarter of 2012. This trend demonstrates a more robust and more resilient lending environment.

At the same time, mortgage rates continue to hold multi-decade lows. For this, we can again thank the Federal Reserve, which continues to purchase $40 billion in agency mortgage-backed securities each month, thus creating a demand that has helped keep rates low.

Though our record at predicting mortgage rates has been spotty, to say the least, it's worth noting that it appears more likely the Fed will cease purchasing mortgage-backed securities sometime in 2014. When the purchases stop, mortgage rates are sure to rise.

In short, this might be the perfect time to buy a home: prices are rising from a low basis, and buyers can finance their purchase with a low-cost loan. How long the perfect time lasts is anyone's guess, but we wouldn't be surprised to see something give – perhaps the price trend or low mortgage rates – by early 2014.

 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.

In the content above, we reasoned why caution is warranted, but we didn't reason that pessimism is, because we don't think it is.

Investment in residential real estate construction is a significant reason why we don't think the housing recovery is likely to wilt. Contrary to popular perception, consumption doesn't drive growth, investment does. We say that because production precedes consumption.

The good news is that private residential investment is on the rise, which portends a rise in sales and sales-related activity. Looking at the bigger picture, private residential investment tends to lead economic growth, so this is obviously a good sign going forward.

Though relatively more cautious, we remain bullish on housing. But as we've noted many times in the past: all real estate markets are local, which means we are more bullish on some markets and less bullish on others.

 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 prices continue to chug along the upward trajectory.

The latest edition of the S&P/Case-Shiller Home Price Index shows that home prices rose in all 20 metropolitan areas the index tracks. What's more, not only were prices up, they were up strongly: Prices in the aggregate rose 1.2% month over month in February, which, when combined with previous monthly increases, produces a 9.4% year-over-year price gain – the highest annual gain since 2006.

To state the obvious, home prices have been on tear over the past 12 months. Many metropolitan regions have experienced double-digit year-over-year gains, and a select few are approaching triple-digit gains.

How times have changed.

In the dark days of 2009 and 2010, when home prices were continually trending lower, we repeatedly championed the need to remain positive. To be sure, the ride down was painful, but we reasoned that prices always bottom. Today, we see that in the majority of local markets prices have not only bottomed but have recovered nicely.

Prices continue to recover, and in many markets the price recovery has advanced to the point where prices are approaching previous highs. This tells us that the housing recovering needs to be viewed with a more discerning eye. We say that because this is a recovery unlike any other.

For one, the recovery is being driven by investors and not owner-occupied buyers. What really makes it unusual, though, is that institutional investors, who in the past drove the multi-family rental market (e.g. apartments), are buying single-family homes en mass.

For example, Blackstone Group, the world’s largest private equity firm, has invested over $3.5 billion to purchase 20,000 vacant and foreclosed single-family homes. In the past, this single-family rental market had been the domain of the small investor.

Not surprisingly, the Blackstones of the world are buying these properties and renting them. This makes economic sense. Vacancy rates are at multi-year lows, while rents are at multi-year highs. Rising rents warrant rising rental property values. Our concern is that we've never seen such a strong push into single-family rentals that we are seeing today. Is this creating a market-distorting effect? We can't say for sure.

We are also concerned by the rise in market speculation, particularly in the former bubble markets in Florida, California, and Arizona. We've noticed a considerable rise in the number of cable television shows devoted to rehabbing and flipping homes. RealtyTrac has even penned an article titled “25 Markets Where Flipping Homes is Most Profitable.”

In short, housing is showing signs of becoming the hot market again, and that alone is reason to vet the market more cautiously.

That said, we still view housing positively. We think there is plenty of improvement to be had in many markets. We also think there is plenty of room left to grow. After all, the upside to rising home prices is more mobility and more buying and selling.

What's more, the lifeblood of the market – financing – remains very attractive. Indeed, mortgage rates have fallen steadily over the past two months and are now flirting with the lows seen late last year.

The mortgage market is also showing signs of becoming more inclusive. More lenders are willing to venture into riskier lending. The Los Angeles Times reports that a growing number of lenders are embracing subprime lending. That's good news, because loans are being underwritten with eyes wide open. More important, they are being underwritten with the risk properly priced in.

And as for risk, it's something we need to become more aware of as the recovery progresses.

 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.

This post originally appeared on LearnVest, where smart people learn to manage their money and live their richest lives.

It’s a question that plagues nearly every homeowner who’s ready to move on: When is the best time to put my house on the market?

And given that the housing bubble burst in 2008, another question inevitably surfaces: Just how much money can I expect to lose?

Well, it really depends on where you live, says Jed Kolko, chief economist and vice president of analytics at Trulia.com. The good news is that, in most of the country, it’s a seller’s market. “Inventory is very tight, so sellers have little competition, while buyers are getting into bidding wars—and sometimes even facing off against investors,” says Kolko.

The bad news? Prices are still sluggish to rebound in some big cities, like Chicago, Philadelphia and New Jersey. That said, a few metropolises have fared better. “The biggest price increases have been in Phoenix, Las Vegas and Oakland,” says Kolko.

So how do you know if it’s a good time to sell where you live? Experts weigh in on three homeowners living in popular regions of the country who are currently debating whether to pack up or stay put.

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.

We can extend the conversation of uncertainty to mortgage-bond investors, particularly those in the private market. Public officials and private pundits alike have commented on the need for private money – which is virtually nonexistent – to return to the mortgage market. Private money matters, because it means a more diverse, more inclusive mortgage-lending market.

A recent New York Times article points out that there have been few private mortgage-bond deals in recent years. The reason is the banks that sell mortgage-backed bonds are waiting for regulators to finish drawing up rules aimed at strengthening the market.

The hold-up centers on loan down payments. Private lenders want more leeway on down payments, so private bonds can be issued on mortgages with lower down payment requirements. Regulators have balked at the request in the past, but today it appears they are more willing to compromise. Regulators are being pressured by lenders and consumer advocates. Both sides have cautioned against stringent down-payment requirements, arguing that restrictions would limit lending.

The regulators are listening, and that’s good news, because if they listen and act on what they hear, we could see lending extended to potential borrowers who are champing at the bit to get in the market and buy a home.

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 sales at the national level continue to spin their wheels.

On the existing-home front, sales dropped 0.6% to an annual rate of 4.92 million units in March. When we look back to October 2012, we see that sales have, for the most part, plateaued.

Of course, when we speak of plateauing existing-home sales, we invariably speak of plateauing inventory. Supply, in fact, remains low at 4.7 months at the current sales pace. Only 30,000 units were added in March, which is 70,000 shy of the historical average March increase of 100,000 units.

The silver lining in this frustrating sales cloud is that low supply coupled with rising demand equals rising prices. Year over year, the median price is up a very stout 11.8%, which is on par with the boom days of 2005. (So we shouldn't expect the current price trend to hold indefinitely).

New-home sales also appear to be going nowhere fast. That said, they are at least lurching forward. New-home sales rose 1.5% to an annual rate of 417,000 units in March. Unfortunately, the increase was still 2,000 units short of what most economists had expected.

Supply is also tight in the new-home market. The number of new homes for sale rose by 3,000 units for March, but that wasn't enough to materially increase inventory, which remains at a low 4.4-months supply at the going sales pace.

Curiously, the median price of a new home at the national level fell 6.8% to $247,000. We are not particularly concerned, though; weaker pricing likely reflects a change in compensation – higher sales of lower priced homes – rather than a material change in overall demand.

So constrained inventory is an obvious issue, but so is tight credit, particularly for higher-amount non-conforming loans.

Rates remain very low, and have been very low for the past year, but we've yet to see a material pick up in purchase-application activity.

Uncertainty and risk – two subjects we've addressed repeatedly in the past six months – are by far the key constraints. Sequestration, regulation, taxes, Obamacare is to name a few of the most obvious uncertainty contributors.

When the perception of uncertainty is reduced, the economy grows, jobs become more plentiful, and lenders and regulators become less risk averse. Unfortunately, uncertainty remains elevated, and as long as it remains elevated the economy will continue to sputter and hiccup along.

 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.

Positive Conversations

We can extend the conversation of uncertainty to mortgage-bond investors, particularly those in the private market. Public officials and private pundits alike have commented on the need for private money – which is virtually nonexistent – to return to the mortgage market. Private money matters, because it means a more diverse, more inclusive mortgage-lending market.

A recent New York Times article points out that there have been few private mortgage-bond deals in recent years. The reason is the banks that sell mortgage-backed bonds are waiting for regulators to finish drawing up rules aimed at strengthening the market.

The hold-up centers on loan down payments. Private lenders want more leeway on down payments, so private bonds can be issued on mortgages with lower down payment requirements. Regulators have balked at the request in the past, but today it appears they are more willing to compromise. Regulators are being pressured by lenders and consumer advocates. Both sides have cautioned against stringent down-payment requirements, arguing that restrictions would limit lending.

The regulators are listening, and that’s good news, because if they listen and act on what they hear, we could see lending extended to potential borrowers who are champing at the bit to get in the market and buy a home.

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.

Just like people, no two screens have the same strength. You can use these methods for all screens, but be gentle if yours are more fragile.

1. Remove your screens. For best screen-cleaning results, remove your screens from the window before getting started. If you’re just trying to clean your screens quickly, and they aren’t too bad (think 1-2 on the dirt scale), it’s okay to leave them in the window. You won’t get every nook and cranny clean, but it’s better than doing nothing. If your screens are any dirtier than that, we definitely recommend removing them from the window. Otherwise, you won’t be able to remove the large chunks of dirt (plus it will make a big mess).
2. Dirt level: 1. If your screens are only a little dirty (and most of the dirt is loose) a lint brush is your new best friend! Roll over each screen on both sides two or three times to remove the loose dust. If this doesn’t do the trick, it’s time to take it to the next level.
3. Dirt level: 2. If your screens are covered in dust and loose dirt, a vacuum cleaner is the way to go. Only use your vacuum cleaner if it has a soft brush attachment. Otherwise, you could risk damaging your screens. Place the soft brush attachment on the vacuum’s hose and run it lightly against each screen. Don’t push too hard or you could tear the screen! Vacuum both sides of the screen until the dust and grime are gone.
4. Dirt level: 3. If you have dirt and caked-on grime all over your screens, they will need a little scrubbing to really get clean. Mix a solution of one tablespoon dish soap (you can substitute white vinegar for dish soap) with ½ gallon of lukewarm water. It’s best to do this outside to avoid making a mess. Tip: Wet your screens first with a garden hose. Then, dip a soft cloth in the solution and scrub both sides of the screens until the dirt and grime are removed. If your screens are fragile or thin, don’t push too hard! Rinse the soap away and let them dry completely before putting them back in the window.
5. Dirt level: 4. If your screens look like they’ve been marinating in a mud pile for a year, you’ll need an old toothbrush to dislodge all of the grime. Mix a solution of one tablespoon dish soap (again, vinegar works, too) with ½ gallon of lukewarm water, and start gently scrubbing your screens with the brush until the grime is lifted. Rinse the screens thoroughly and let them dry completely before you reinstall them.
6. Insect issues. If insects are sneaking through your screens, seal the holes on the bottom portion of your screen with clear nail polish. This should prevent insects from climbing through. This works for new screens and screens that have seen better days. For older screens, take a good look at the holes. If they seem larger than they were a year ago, it’s probably time to buy new screens. Note: If insects are dead-set on getting through your screens, this may not work because they’ll climb up the screen until they can fit through a hole. Instead, try some other pest prevention strategies.

Gold sold off big this past week, posting its largest two-day dollar drop ever, and its biggest percentage drop since 1980. Okay, but what does gold have to do with mortgage lending and housing?

Gold is considered a haven asset. Gold is an asset investors flock to when they are fearful, particularly if they are fearful over slow economic growth and inflation. When investors are fearful money flows to gold.

But the recent sell off points to money flowing out of gold. This tells us that investors are becoming less fearful and that more money will be flowing into other asset classes. This also tells us that more investors are expecting more economic growth – which is good news for housing and mortgage lending. When more people expect more economic growth, interest in housing rises and financing becomes easier to come by.

We mention gold because assets markets are interconnected: money flows from one asset class to another. Money flowing out of gold means more money will likely flow into stocks, real estate, and capital investment, which should help the economy and increase job opportunities and wages.

In other words, investors today are becoming more interested in growing wealth than preserving it. This is good news for the economy in general, and for large-item goods (like housing) in particular.

 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.