Real Estate Information Archive

Here are some homes that you could purchase in the Harrisburg PA real estate market with a principal and interest payment of $800 per month. These are some examples of homes that presently for sale on the East Shore of Harrisburg. Naturally, taxes and insurance must be added to the $800, but in any case I would anticipate that a total monthly obligation would be approximately $1050 per month.

Remember this is your home and you are not paying a mortgage payment for someone else. The calculation I used actually would cover a purchase price of $179,156 and the interest rate for this example is 3.5% fixed for 30 years. If you are interested in any of these or any other home you see please contact me at Don@DonRoth.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.

When people contemplate what went wrong in the housing bubble, they frequently point to lending: subprime loans, interest-only loans, negative amortization loans, and securitization were the helium that inflated the bubble.

That's not really true, nor fair. These products have been around for years and had served the borrowing public well. The problem was really the misguided belief that an asset – housing in this case – can only rise.

The chief problem today, and a primary impediment to the housing recovery, is excessive regulation, which is limiting choice. A recent report from FBR Capital Markets points to a regulatory environment that is “plain vanilla” in that it favors the 30-year fixed-rate loan above all others.

Now, there is nothing wrong with the standard fixed-rate mortgage products, but other mortgage products have their place. Indeed, you could argue that taking an interest-only loan to purchase a Phoenix-based home late in 2011 was a savvy business move; the buyer would have tied up little of his own capital to purchase a bargain-basement asset that has since appreciated strongly.

Many regulators and even more mortgage-industry participants have called for the need for more private mortgage investors to enter the market. For that to occur, though, these investors need the freedom to offer products that will satisfy a wider swath of borrowers needs, while also enabling them to earn a profit.

We think 2013 will become the year of diversity: that is, a more diverse, heterogeneous mortgage lending market with more private investors. We say that because economic growth impacts regulation, and we see economic growth in 2013. Generally, the higher the growth, the more accommodating the regulators.

We look forward to a strong 2013, and a stronger, more flexible mortgage lending market.

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.

The news was disappointing, but not terribly so. We are referring to the dip in new-homes sales for October.

The Commerce Department reports sales came in at an annual rate of 368,000 units last month, which was 17,000 shy of the consensus estimate for 385,000 units. Pricing was also a minor disappointment. The median price for a new home dipped 4.2% to $237,000. This marked the second-consecutive month of price weakness.

Disappointing, yes, but hardly a cause for concern. Year over year, new-home prices are up 5.7%. Given the scant supply of homes, we don't see a backsliding trend developing. The number of new homes for sale is still only 147,000, representing a 4.8-month supply at the current sales pace.

The longer-term perspective is another reason to remain optimistic. New-home sales have averaged 361,000 per month on an annual-rate basis through October. In other words, sales are on pace to increase 18% this year.

What's more, we have plenty of room left to run. Even with the double-digit sales increase, 2012 will be the third-lowest sales year since the Census Bureau began tracking new home sales in 1963. It's also worth remembering that this year's average sales rate is still below the 375,000 average rate of sales in 2009.

Most estimates we've seen (which are likely conservative) expect new-home sales to double within the next couple years. This would put the annual sales pace closer to historical norms, which is around 1 million sales on an annualized rate.

Though new-homes sales disappointed in October, the trend in overall pricing – new and existing homes – remains strong. Most private data providers show prices increasing in more markets. This past week, Case-Shiller's home price index showed prices rose 0.4% in the 20 cities it follows. This was the sixth-constrictive month of price gains, with gains sweeping across all 20 cities.

The trend in purchase applications is also encouraging. Rising applications point to rising home sales. Rates continue to make new historical lows (albeit by a couple basis points) each week. Low rates contribute to a high-affordability index.

Low mortgage lending rates are an important variable in the home-purchase equation, but they are not the overriding variable. The above chart shows brisk sales even with lending rates 300 basis points higher than they are today.

In other words, low lending rates have done about all they can do to stimulate sales. At this point, the key variables for a sustained housing recovery are economic growth and more credit-worthy borrowers having access to credit.

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.

Many times when someone is looking to either buy or sell a home they will ask how long has that home been on the market and I will give them the answer. But more important, in my opinion, is what the activity like in an area or a price range. This chart gives an overview of what is happening in both Dauphin and Cumberland counties in the greater Harrisburg PA real estate market.

The absorption rate is calculated by dividing the number of homes sold in a specific period into the number of homes for sale. The term 'balanced market' has been determined to mean that you have a housing supply of six months in a price range. And if there is less than a six month supply it becomes a 'sellers’ market' and over six months is a 'buyers’ market.'

This is a good rule of thumb to look into whether you a buyers or seller but remember other items such as taxes and insurance can impact the value of a home and what a buyer is willing to pay for a home. The absorption rate can influence a buying decision so do not hesitate to ask because although it is a snapshot it can in some instances be an indication of things to come in the future.

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.

One pervasive economic misconception is that consumption drives growth. Consumption matters, to be sure, but not as much as investment. After all, to consume you must first produce something to exchange.

For this reason, we follow investment trends. We are particularly encouraged by the rising trend in residential fixed investment. After hitting a multi-year low in late 2010, residential fixed investment has trended higher. The good news is that investment has a long way to go before reaching historical norms. That means the market still holds a lot of potential. 

Housing, as we mention above, has a cascading effect. Housing investment influences many other businesses. As housing activity increases, activity in other business sectors will increase as well: and voilà , more economic growth!

More economic growth, in turn, lowers risk aversion. If economic growth materializes as we expect, we should see more accommodating regulation and more accommodating lending in 2013. At least that's the way the market worked in the past.

There is one slight negative in our scenario. Stronger economic growth will also lead to rising home prices and higher lending rates. This is a point worth driving home to clients. Last year, we saw a plethora of housing bargains. This year we see bargains, just fewer of them. This time next year, we expect to see fewer bargains still.

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.

Last week, we wrote that housing would be the economic driver that lifts us from the morass that has plagued the economy for much of 2012. This week's slate of housing data buttresses our argument.

We'll start with existing-home sales. The data show sales rose 2.1%, to a 4.79-million annual rate, in October. Prices continue to trend higher, with the median price of an existing-home posting at $178,600, an 11% increase over the year-ago median price. The average price, meanwhile, was up 9.9% year over year to $226,300.

Supply was a minor irritant in the data. Existing-home sales likely would have been higher if there had been more homes to sell. Inventory dropped to a 5.4-month supply in October, the lowest level in 6-1/2 years. The number of existing homes on the market, at 2.14 million, is the lowest in 10 years.

Existing-home sales contribute to economic growth, just not as much as new-home sales. Before a new home is sold, it must be built. Construction activity has far-reaching implications. Construction requires new material, new employment, and new financing. Many more businesses are impacted by the sale of a new home than an existing home.

For these reasons, new-home activity is a key component in economic activity.

The good news is that home builders are maintaining a busy construction schedule these days. New home starts were up again in October, rising 3.6% to an annual pace of 894,000 units. The pace in starts is up to a level unseen in over four years.

Given the strong, persistent trend in starts, we weren't surprised to see home-builder sentiment rise yet again. The latest survey of home builders show sentiment is approaching a seven-year high at 46 (50 is the point were optimists and pessimists are split). We expect sentiment, along with new home sales and starts, to trend higher through December and into 2013.

We remain bullish on sales because the housing recovery continues to expand to more markets. Zillow’s October Real Estate Market Reports show that 228 (62%) of the 366 markets it follows saw annual home-value appreciation in October. Among the top 30 metropolitan regions, 29 experienced monthly home-value appreciation.

Financing also continues to trend positively. The Mortgage Bankers Association reports its purchase index was up 3% for the November 6 week. Though applications are volatile week to week, they remain in an up trend dating back to April.

We've mentioned many times that leveraging an appreciating asset is a smart financial move. Borrowing to pay part of the purchase price means realizing a higher return on investment, because borrowing (leverage) requires less equity commitment.

Low lending rates also goose investment returns. Mortgage lending rates continue to hover near all-time lows, and we don't see that changing in the immediate future. Keep in mind, though, should housing ignite economic growth, lending rates will be hard pressed to maintain today's all-time lows.

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.

All the hype and hoopla that centered on shadow inventory and its ability to depress the housing market earlier this year seems a little overdone in retrospect.

Indeed, shadow inventory has almost become a non-issue these days, and heading into 2013 it will likely become even less of an issue. We say that because the Mortgage Bankers Association reports mortgage delinquencies hit a four-year low in the third quarter. At the same time, the foreclosure inventory rate fell 20-basis points, posting the lowest quarterly drop since the MBA began surveying the market.

The delinquency and foreclosure trend has actually been on the decline since peaking two years ago. We expect it will continue to decline through 2013, and very likely beyond. There are a number of reasons we think distressed properties won't spoil the recovery.

For one, negative equity is declining. Zillow reports that negative equity declined 30% in the third quarter of 2012, the largest percentage decline Zillow has ever reported.

The decline in negative equity is the corollary to rising home prices. Over the past year, we've continually, and almost without fail, reported on rising home prices. Keeping the streak alive, we report this week that Zillow's data show home values rose 1.3% in the third quarter compared to the second quarter, with the national median home price rising to $153,800.

A dearth of inventory will keep home prices rising, and thus further reduce the negative-equity overhang. New-home inventory is at record lows. The National Association of Realtors will report existing-home inventory next week, and most industry watchers are expecting inventory levels will be down sharply year over year in October. Low supply plus rising demand equals rising prices.

The current interest-rate environment should continue to ensure a minimum level of demand going forward. We are all aware that mortgage lending rates are at multi-decade lows, and that's unlikely to change through 2013.

Underwriting is the more pressing issue these days. Lending standards remain tight, particularly with lower-rated borrowers. A less diverse lending environment is one reason they remain restrictive. Private investment has yet to return in mass following the financial-sector meltdown in 2008.

Risk aversion is another reason. Lenders are rightfully concerned with the costs Obamacare will impose on the economy next year. They are also concerned with the fiscal cliff, which would mean tax-rate hikes and spending cuts. It also appears more likely that Europe could fall into recession. If that occurs, the probability rises that the United States could fall into recession too.

The fiscal cliff is the most oppressive concern these days. Democrats and Republicans have attempted to pound out various compromises. We've heard some chatter that the mortgage income tax deduction is on the table. One bipartisan plan would limit the deduction to $25,000 worth of mortgage interest annually. Other proposals include eliminating the deduction for taxpayers earning $250,000 or more, ending the deduction on second homes, and even ending the deduction entirely (this last option is unlikely).

In short, there is a heckuva lot of uncertainty in the financial markets today. Until some of the uncertainty is removed, we can expect mortgage rates to remain low, but we can also expect for underwriting standards to remain elevated.

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.

With the year coming to a close we can look at this chart and say when reviewing the prices of sold homes that things are not getting better in the Greater Harrisburg PA real estate market. BUT the number of sold homes increased and the all important days on market (time required to secure a sales contract) has decreased markedly. Yes you can say that the median and average sales price has declined and it has but the number of home for sale has decreased by over 5% compared to October 2011 and the homes that have sold but not settled has increased by 35% over the same time last year. We have been saying things will improve but any improvement will not be without some bumps in the road. October is a good indication of that. Later on I will give a breakdown of the sales for the school districts comparing 2011 vs 2012. Please remember the market is getting better and good things happen for those who wait.

HAPPY THANKSGIVING.

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.

Hurricane Sandy swept through 12 U.S. states this past week, causing wide-spread flooding and an estimated $10 billion to $20 billion in potential losses, according to research firm Capital Economics. That means a lot of money will be earmarked toward home repairs and new-home construction. Some commentators have viewed this as a silver lining.

To be sure, more money spent on housing will help the housing sector, but there is an unseen and a frequently neglected opportunity cost: Money spent on housing is money that could have been spent elsewhere. A natural disaster means money must be spent to replace what already existed; that's money that could have been spent on other goods or services or investments.

This lost opportunity to spend elsewhere is what the 19 th century French economist Frederic Bastiat referred to as “the unseen.” Yes, we can see more money being spent on housing, but we can't see where it would have been spent had there been no hurricane.

In other words, Hurricane Sandy will provide a boost to housing, which is our gain, but that doesn't translate into a boost to the overall economy because of the lost opportunity to spend elsewhere.

The point we want to emphasis is that it's always worth considering Bastiat's the unseen. The seen in housing is improving sales and pricing, but the unseen is what the housing recovery could be if it were unhampered by the exclusion of unfunded qualified borrowers. This unseen is our loss.

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.

The MBA expects purchase originations to climb to $585 billion in 2013, up from an estimated $503 billion in 2012. That's the good news.

The bad news is that there should be even more purchase originations. Housing and Urban Development Department data show that 10% to 20% of qualified borrowers are not getting approved for loans. We believe that figure under reports the problem.

So why are too few qualified borrowers getting their loan? The answer centers on regulation and private participation.

As for regulation, it's simply too heavy handed, which discourages risk taking by lenders. We find a comment by new MBA Chairperson Debra Still revealing. She says, “Clearly, we are still in the penalty phase of the housing crisis,” meaning that lenders are still paying for past digressions. That's hurting many of today's qualified borrowers.

We also find it interesting that the government-sponsored agencies –Fannie Mae, Freddie Mac, Ginnie Mae – want more private capital in the housing finance system. We couldn't agree more, because more capital sources and more participants create a more diverse and accommodating lending environment.

Unfortunately, overly strict regulation and artificially low interest rates are keeping private capital on the sidelines. Private capital requires more lending freedom and a higher rate of return on investment than public capital.

Fortunately, stronger economic growth, which we expect in 2013, should loosen the shackles. Both lenders and regulators become less risk averse when economic growth is rising. Rising growth also brings rising interest rates, and that's not bad. Higher rates will attract more private capital.

In short, we expect to see a more robust lending environment next year, which should also be a higher lending-rate environment. And that's a good thing.

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.