Real Estate Information Archive

July 2012 might be categorized as the good, the bad and the unknown. First, naturally the good news. The number of sold Central PA homes this July increased by 4.8% over July 2011 and there was a less than 1% decrease in the average sales price year over year in the greater Harrisburg area. This continues the moderate improvement in the real estate market in this area and I anticipate this will continue throughout the rest of 2012. The bad? Well we still have an excess supply of homes for sale at this point and although there continues to be an improvement in the numbers there are great opportunities for home buyers and sellers. Why? Although not a great percentage of the homes for sale are composed of short sales and foreclosures it appears that the perceived negative on home values continues in the market. And as has been discussed in many media outlets people are concerned about their home values being less than a few years ago and their own financial well being.

Even though Central Pennsylvania real estate has not been as affected negatively by the financial slowdown there has definitely been some pullback and caution that continues in the real estate market. The unknown is, at least today, the increases  experienced in mortgage interest rates and is the increase a temporary blip or the beginning of a trend towards higher rates? As an example rates on a 30 years fixed rate mortgage is up by .50% in the last two weeks and if the increases continue the purchasing power for buyers will decrease and be reflected in real estate values. I said two weeks ago that we never know when the interest rates hit the absolute bottom until they have already begun to increase. I do not think we are there yet and hopefully I am correct on that prognosis.

In comparison the 2011 or even 2010 we have made significant improvement in the real estate market and I do think the good will definitely outweigh the bad and the unknown. We are here to answer any real estate questions that you have so please contact us.

School Districts

West Shore

School District                      Average Sales Price 2011                   Average Sales Price 2012   Days on Market

Camp Hill                    $172,400                                 $186,160                      111/40

Cumberland Valley      $296,855                                 $266,155                     104/102

West Shore                  $178,326                                 $169,121                     104/80

Mechanicsburg             $200,770                                 $202,763                     67/89

Northern York               $235,608                                 $213,682                     91/126

Carlisle                         $181,062                                 $163,378                     111/105

East Pennsboro             $156,175                                 $150,647                     180/92

East Shore

School District                      Average Sales Price 2011                   $Average Sales Price 2012                Days on Market

Central Dauphin                   $189,766                                               $205,755                               116/112

Derry Twp                             $322,427                                               $244,253                               90/53

Lower Dauphin                     $235,586                                               $269,124                               98/66

Harrisburg                             $75,530                                                $56,281                                 156/96

Middletown                          $113,069                                               $134,967                                69/119

Steel High                             $69,400                                                $79,267                                 130/62

Susquehanna Twp               $151,141                                               $147,500                                 97/90 

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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.

The Central Pennsylvania real estate sales numbers for May are in and they are very telling. The number of homes that sold in May decreased by 37% compared to May 2010. Yes, that is a dramatic drop but we must remember that in 2010 we were winding down from the Federal Governments First Time Homebuyers Tax Credit incentive which accomplished the intent of selling more homes in an effort to get the economy moving at a faster pace. It worked and probably it sacrificed future home sales.
 
The average sales price of Central Pennsylvania real estate declined by 6% from 2010 and that decrease does not concern me since when reviewing full year over year average sales prices have held constant for the last three years, which averaged in the $185,000 to $190,000 range. You are probably saying that I am looking through rose colored glasses and that there are positives in the real estate market. Well, the numbers of pending sales (homes that are under contract but have not settled) increased by 17% since the end of the first quarter of this year and are up over 20% since the end of 2010. Factor in the extremely attractive mortgage rates, currently at 4.50% for a 30 year fixed rate and the abundance of inventory there are many reasons to be positive in the next coming months. Are we out of the woods totally, probably not but I am seeing the positives rather than the negatives. Yes there is still some pricing pressure in the market but when you read that the alternative to owning a home is renting and those costs are accelerating at a faster pace than total mortgage payments, in my opinion there is not a contest between owning a home or paying rent.
 
This region has not had a high percentage of short sales and foreclosures that many areas of the country have experienced so that is an extreme positive. We will see  more positives in the future so if you are a buyer take advantage of this opportune time. If you are a seller be sure that your home is properly priced and as I heard recently insure that your home is a compelling value. 

Although in the greater Harrisburg/Central Pennsylvania real estate market we are experiencing the beginnings of a basing of prices, there are homeowners facing serious challenges with their home mortgage payments in an attempt to keep their individual homes. The recent action by the President and Congress through the recently passed legislation has given homeowners the resources to see through the various governmental initiatives a vehicle to save their homes. These programs are not going to save every homeowner, but these are channels to research the process and you have the ability to investigate what is available to you.

Here is a list of websites that offer tools that may help you if you are facing challenges with your mortgage:

www.MakingHomeAffordable.gov
www.fanniemae.com/homeaffordable
www.freddiemac.com/avoidforeclosure
www.portal.hud.gov
www.hopenow.com

In addition to these sites, please do not hesitate to go www.PHFA.org (Pennsylvania Housing Finance Agency) as a site that can provide additional resources. BUT please do not go and pay for any credit counseling because all of the sites listed will provide the counseling at NO COST to you. ALSO REMEMBER, if you are having problems paying your mortgage payments, call your lender immediately because they are not in the business of owing homes and if there is a way, they and you are better off investigating the alternatives of foreclosure. Being proactive is the best alternative in the current environment.

If you have any questions, please feel free to email me at don@donroth.com.

The real estate market is really bad and no one is able to sell their house. Sellers are losing money on their homes or every home that is selling is a foreclosure, and those homes are depressing the values of the homes around it. How many times have we seen something similar in the paper or on the nightly news?

Well the market in Central Pennsylvania from Carlisle to Hershey and in Dauphin, Cumberland, Perry and northern York Counties has changed, but the news isn’t all bad. Yes, the number of sold homes has decreased in 2008 compared to 2007 and 2006. The number of sold homes has decreased by about 30% during the mid-May to mid-June 2008 time period and the average sales price had declined $203 per home, but the AVERAGE SALES PRICE in 2008 is HIGHER by about $3000 compared to the same period of 2006. And although sales are down right now, this trend will reverse itself in time. Yet when we see the numbers of 20% decrease or more of valuations in states like California, Arizona, Nevada and Florida, the above numbers give us the realization that local Central Pennsylvania market will rebound on firm footing. “It’s a ‘back-to-basics’ market,” says PAR consulting economist Austin Jaffe, Ph.D., chair of the Department of Insurance and Real Estate at the Smeal College of Business at Penn State University. “The era of easy money and exotic mortgages never took hold among homebuyers in the Commonwealth, so prices in Pennsylvania never increased as much or as quickly in other markets. There’s no reason to expect that prices will fall as much or as rapidly here.” “This is the beginning of a new period in the housing market - or a new ‘old’ period where consumers buy homes to live in and use as long-term investments, not as a get-rich-quick scheme,” adds Jaffe.

This real estate market, as far back as I can remember, never followed the substantial increases that some national markets experienced and therefore never experienced the falling of the cliff syndrome when these or similar markets corrected. Whether you live in Derry Township, the city of Harrisburg, Hampden Township or Lower Paxton Township, you will see a rebound in activity and an increased valuation for your homes in the future. I have been asked by many and they say that they want to move up to a larger home, but the value of their home may have decreased. That may be true. However, before they could purchase the next home, they had to sell their existing home but they still had to find a buyer. Now despite what you hear that there is no available credit for home buyers – FALSE – the lenders along with some of the governmental agencies have or are working on new programs to assist buyers in arranging financing packages for buyers to purchase homes. The credit standards are higher than in past years, but there is money available for you and your family – so take advantage and don’t let the negativity of the press prevent you from buying your next home. You and I cannot stop the constant beat of the national market, but I will on a regular basis give you the real news in our local market.

If you have any real estate related questions, or if you are considering buying or selling a home, do not hesitate to contact me. I can be reached at 717-579-2879 or via email at don@donroth.com or view the information at www.DonRoth.com.