Real Estate Information Archive

Central Pennsylvania Real Estate Report

If there is one subject that is constantly discussed, it is the state of the real estate market in the Greater Harrisburg area. I am always asked are homes selling and what sales range is the strongest. The short answer is that homes continue to sell in our market, but they are taking a little longer to sell than what we have experienced is the past few years and that trend probably will continue into the first half of 2011. Homes priced in the low to mid $100,000s are selling the best, if you will but we must remember there are traditionally more homes in this range than any other price range. But homes in all price ranges continue to sell in our market. We must remember that some of the unfortunate news that we hear about in some areas of the country are not being experienced by this market to the degree that other areas have experienced. Yes there has been a slowdown in sales and increases in foreclosures and short sales in this market and that trend will again continue in the near future.

Is there good news in the Harrisburg real estate market? Absolutely, mortgage rates, although they have increased recently, are still below 5% and most likely will increase slightly in the months ahead. Additionally, the average home sales price has held up remarkably well and in my opinion that will continue. And lastly if you are looking to purchase a home there is a great selection of homes to choose from in all price ranges. We will most likely never see the frenzy that we saw a few years back, but I have been in this business for over 19 years and we will see the normalcy of the early 2000s and we will experience excellent home sales numbers with appreciating, not depreciation average home sale prices. No the glass is not half full yet but we are getting closer. May you have a Happy and Prosperous 2011.

If you have any real estate questions please contact me at Don@DonRoth.com and if you would like to see the list of available homes for sale visit my web site www.DonRoth.com and click on the search listings tab and search away.

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Home Sale Prices in Central Pennsylvania September 2010

The Greater Harrisburg area real estate market continues to be somewhat of a contraction. The sales number for September 2010 are down 35% compared to September 2009, but the average sales price has increased during the same time frame. So what does that mean to the current buyers and seller of real estate? First, there is plenty of concern about the economy and the impact on personal finances, job security and the values of homes. Second, valuations on many homes are down from the peak of the market but when compared to many areas, this geographic area has held its own and when you are reading about the real estate market many reports give a national versus a local perspective. Third, we will probably never see the year to year appreciation that we experienced, but this region has been relatively stable over the last thirty years and we will begin to see some appreciation, not great, within the next twelve months. So if you are looking to buy or sell, remember valuation is primary and when looking to purchase a home today’s mortgage interest rates, I was quoted 4.125% last Thursday for a thirty year mortgage, are at historic lows. So even if you are not in the market to purchase a home, you may want to seriously consider refinancing your current mortgage and saving some money.

One last important piece of information. If you find yourself in a position of being behind on your mortgage, please click on the following link which provides numerous sources of assistance Mortgage Financing Options That May Save Your Home. And if you need any additional information please contact me at Don@DonRoth.com.

Again, if there is any real estate information you need, please contact me at your convenience.

Have the real estate prices in the Greater Harrisburg market begun to stabilize? The answer right now looks that we, as I have been saying, are getting close; but my only concern is that we need one or two more months of validation. When comparing the number of homes sold in June 2009 vs June 2010, there was a 3% increase in the numbers and a 7% increase in the average sales price to $200,419. The average sales price did increase from previous months average that had been in the $180’s, so we just want to be sure that this is not an anomaly.

There are three primary reasons that one may say caused the gain; 1) the effects and benefit of the Home Buyer Tax Credit; 2) there are perceived values in the market and; 3) mortgage interest rates remain extremely low, such as 4.75% for a thirty year fixed rate mortgage. But something else occurred, the higher end (homes that sold in excess of $300,000) of the market improved substantially and the number of homes over $400,000 had a more dramatic increase on a year over year basis, consisting of 14% of the number of sales in 2010. So one month does not make a trend, but there are positives that are beginning to appear. I will keep updating the movement of the market and if you have any specific real estate questions, please contact me at Don@DonRoth.com. Enjoy your summer.

When reviewing the yearly comparisons between years for different school districts, there is usually a relatively small number of homes sold and when you have a few higher priced home sell, the month to month variance can be greatly exaggerated, up or down. Again, if you have any questions, please contact me at your convenience.

With the change in the seasons, we are beginning to experience a change for the positive in the real estate market in the area. As I have said previously, the change is not going to be a quick fix but rather a slow improvement in the market. But in comparison to many other areas of the country, we are in much better condition and this should continue going through the rest of the year.

The number of sold homes decreased by 3% in 2010 compared to 2009, but this is much improved over the 20% decrease we experienced in 2009 compared to 2008. And the average sales price for the same period decreased by less than 1% to $179,057. Although the days on market increased to 98 days, we are now back to what I call a normal market that was common prior to 2003.

As with last year, the mortgage rate environment is still extremely favorable to buyers, although rates on a 30 year mortgage have increased slightly to 5.25% compared to 5% in 2009. It is my opinion that these rates will continue to increase gradually as we go through 2010. But be sure that lenders have plenty of money available for qualified borrowers and that again should continue throughout the year. So what should a potential home buyer do in this environment, my opinion is take advantage of the low rates and the plentiful inventory that is in the market. There are approximately 4900 residential units available for sale at this time. In conclusion, we are moving onward and upward in the area and take advantage of the positive situation while it is available.

First, as we approach Thanksgiving, I want to wish the happiest of times to you, your families and your friends. We have been through some interesting times in the last year and it appears that this trend will continue for the foreseeable future. Let us count our blessings and look for a brighter tomorrow.

I am sure many people saw the news that the Federal Reserve enacted a second large multibillion dollar initiative in hopes of stimulating the housing market for both buyers and sellers in this challenging market. What does that do immediately for you? Well, the initial reaction was to reduce current 30 year mortgage rates down by about .75% or a savings of $72 a month on a $150,000 mortgage or a yearly saving of $864 a year. Not a lot but better in your pocket than the lenders.

If you are considering the purchase of a home, this may be the market of opportunity for you now and for the next few months. While no one can accurately predict the bottom of a market, many will be upset that they waited too long to buy a home. If you are a current owner, you may say that your home isn't worth as much as last year and that may be true. However, if you are considering moving up the home, what you are looking for isn't worth as much as it was last year. There are many opportunities that will be available and if you are considering a move, you should begin your planning now so you are adequately prepared. Just remember the Greater Harrisburg, Carlisle and Hershey real estate markets have been one of the most stable market in the nation - put that to your advantage.

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.