Real Estate Information and Homes For Sale

Over the past year, we have on occasion highlighted the advantages of owning compared to renting. Zillow has given us reason to highlight the advantages once again.

Specifically, Zillow focuses on rising rents and slowing home-price appreciation. Zillow reports that monthly rents have grown at roughly twice the pace of wages since 2000. Americans are spending a greater share of their income on rent these days – roughly 30% versus 25% in the past. Home-price appreciation, on the other hand, continues to slow. At latest count, 5.4% year over year.

Zillow doesn't necessarily think that rising rents will drive homeownership rates – at a 20-year low – higher. We respectfully disagree.

If you are paying 30% or more of your income for rent, and that percentage continues to rise, owning becomes a more attractive alternative when future costs are factored in. After all, the key advantage of owning is that a price is locked in, especially when the purchase is financed with a fixed-rate loan.

We think the advantages of owning compared to renting will become even more apparent as the year progresses. Rent increases show no signs of abating, while home-price increases do. This is yet another reason we continue to cheerlead in favor of homeownership.

Information provided by 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.

I just read an article that said the average monthly rental payment in the Harrisburg area was $846 in 2013. Since this report says they calculate that number every two years, I made the adjustment to $900 per month. So using this number and rounding down to consider a 3.75% 30 fixed mortgage rate you arrive at a monthly principal and interest payment of $879.92. Amazing how close that figure is to the average monthly rental payment, wouldn’t you agree?  Yes, I am aware that the mortgage payment does not include real estate taxes and insurance but I wanted to give you a reference point to consider.   Included below are a few pictures of homes that fall into this affordability price range. 

You probably are asking why I am posting this article now? Well, we have all been saying that interest rates are going to increase by the end of 2015. AND yes we have made that prediction before and nothing has happened and I am not saying this is different than previous times but it is. So if you are paying this amount of money in rent at least consider the alternative, talk to a lender and see what your options are.  Or give me a call and we can look at some homes, just like you take a car for a test drive.  If you don’t like anything at least you know that home ownership is not for you at this time. Give me a call or text me at 717-579-2879 or send me an email at Don@DonRoth.com.  I am happy to assist you ! 

Still No Traction

The wait for an up trend in existing home sales continues.

Despite a year of strong job growth and low mortgage rates, sales of existing homes continue to languish. Indeed, sales fell a steep 4.9% to 4.82 million units on an annualized rate for January. The drop in sales made for a sizable rise in inventory relative to sales, to 4.7 months versus 4.4 months in December.

At the same time, the median price of an existing home dropped 4.1% to $199,600. This is the first reading below $200,000 since March 2014. Oddly, if not disconcertingly, price concessions haven't helped lift sales. Given the uptick in inventory, we would not be surprised to see more discounting in February's report. Generally, that would be a positive for sales, but we will see.

Because it is taking so long for existing home sales to gain traction, we have to wonder if there is a fundamental shift occurring. The NAR reports that homeowners are remaining in their homes 10 years on average these days. This is three years more than the long-term average of seven years. Are homeowners more nervous? Are they more interested in rehabbing than moving? Is job mobility an issue? Perhaps all the above; all we know is that more people are staying put.

Then again, it's also possible a stronger foundation is forming. If total existing home sales are moving sideways due to fewer distressed sales, that's obviously a good thing. This suggests that declining distressed sales are being offset by more conventional equity-driven sales. In other words, the composition of sales is improving.

Though the overall sales market is much smaller, new home sales are at least trending higher. Sales of new homes came in at a better-than-expected 481,000 units on an annualized rate in January. Unlike with existing home sales, discounting appears to have helped new home sales. The median price for a new home dipped 2.6% to $294,000 in January. If we go back to January 2012, we see a healthy long-term trend line that moves up linearly left to right.

Of course, we are always quick to note that all housing markets are local markets. What occurs at the national level might or might not reflect what occurs locally. Mortgage markets, on the other hand, are much more consistent across the country. Mortgage rates in Boston aren't much different than rates in Los Angeles.

Rates across the country have risen in recent weeks. Despite the rise, purchase mortgage activity has come to life. The Mortgage Bankers Association reports that its purchase index ended six weeks of declines with a 5.0% rise in the February 20 week. We are hopeful for further gains, but we've learned from experience not to hold our breath.

One week doesn't make a trend, but if price growth continues to moderate and mortgage rates remain low (which we believe they will), we still think we will see a resurgence in lending and in home sales that we predicted at the beginning of the year.

Information provided by 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.

Cleaning and organizing books are everywhere these days. And if we're being honest, a lot of them are pretty similar. But The Life-Changing Magic of Tidying Up, a book by Marie Kondo, stands out from the pack. Marie adds a fresh perspective to the age-old clutter struggle by incorporating a decidedly Japanese outlook on the problem.

If your current clutter solutions just aren’t working, we definitely recommend picking up Marie’s book. But in the meantime, we pulled some quick tips from Kondo’s book that you can start doing today.

Start with a Small, Unsentimental Category

When you embark on the ultimate organization session, don’t start somewhere bound to spark memories or tough decisions like your photos or clothes.

Take your first steps by discarding a manageable grouping like your Tupperware or toiletries. Although it may be intuitive to start in an area that you use every day, it could stunt your progression.

Discard Every Time You Tidy

Try getting rid of at least one item every time you set out to de-clutter a space. Ideally, you want to do a full audit of what you own every time you tidy, but realistically, one item is a good start.

Remember, putting everything away only avoids the clutter problem – it doesn’t solve it.

Tidy by Item, Not by Space

The idea here is to organize based on the item and not by the room. For example, audit and organize all your clothes at the same time. That means you’ll have to go through your dressers, closets, coat closets, the outdoor gear in the basement. Do it all!

This way you have a clear vision of what you have and what you really need. You’ll feel more comfortable paring down to the necessities.

Understand Why We Let Things Go

Kondo argues that by having piles of things, we are neglecting the items we love. Learning to let go stems from understanding each item’s purpose and honoring it – whether you are choosing to keep it or to leave it behind. Either way, understanding your relationship with every item will help you know what to keep, and what to toss. 

If you want to continue the Japanese de-cluttering journey, you can grab The Life-Changing Magic of Tidying Up on Amazon right here.

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.

The National Association of Home Builders/Wells Fargo Housing Opportunity Index shows homes remain affordable across much of the United States. The NAHB and Wells Fargo found that 62.8% of new and existing homes sold in the fourth quarter of 2014 were affordable to families earning the U.S. median income of $63,900. This is up from the 61.8% in the third quarter.

Last week, we highlighted the advantages of owning versus renting. In many markets, rents continue to push ahead while home-price appreciation has slowed. But recent news from Realtor.com has us wondering if the advantages of owning are dissipating.

Tightening inventory continues to plague many markets. Realtor.com reports that total listings nationwide declined 6.7% in January and are down 8.7% year over year. This suggests that price growth could start trending higher in coming months. At the beginning of the year, we thought price growth would abate in 2015. We still believe it will if the trend (down) in negative equity continues, but it appears less of a sure thing.

That said, it's still a good time to buy. Yes, mortgage rates have moved higher, but they are still very reasonable. But if economic growth is on as solid a footing as the Federal Reserve believes, rates will become less reasonable heading into the second half of 2015.

So we ask, what's the upside to waiting? We really don't see any.

Information provided by 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.

Is Smart Money Telling Us Something About Mortgage Rates?

We don't really know if the money is smart or not, but we know someone's money is saying something about interest rates and mortgage rates.

Over the past week, the yield on the 10-year U.S. Treasury note has climbed over 10-basis points. This continues a trend established late January. Over the past three weeks, the yield on the 10-year note has actually climbed 40 basis points to 2.1% from 1.7%.

As the yield on the 10-year note goes, so frequently goes the rate on long-term mortgage loans. Nationally, Bankrate.com shows the 30-year fixed-rated loan averaged 3.96% this week, while the 15-year fixed-rate loan averaged 3.21%. Both are at 2015 highs.

The Federal Reserve, in its latest meeting minutes , opines that the economy is strong. With a strong economy usually comes higher interest rates, which we've seen in recent weeks. Interestingly, the Fed also highlighted that it was in no hurry to raise the influential federal funds rates for fear the “strong economy” could weaken.

Fortunately, the Fed has some leeway on raising the fed funds rates, because consumer price inflation remains a non-issue. Thanks to falling energy prices – oil and gas in particular – consumer price inflation is running less than 1% annually (the Fed would like to see it run at 2%). Higher interest rates aren't needed to tamp down consumer price inflation, because there isn't any to tamp down.

Then again, maybe the economy isn't quite as strong as the Fed is projecting. Housing comes to mind. On the national scene, it's a bit disconcerting that activity in the new-home market has backslid.

Housing starts declined 2% in January to 1.065 million units on an annualized rate. More discouraging, starts were down 6.7% for the month compared to December. Disappointing starts were reflected in home builder sentiment. The National Association of Home Builders (NAHB) reports that its housing market index clocked in at 55 in February, down from 57 in January. The good news is a reading above 50 is mostly positive.

Sluggish home sales are reflected in sluggish lending activity. The Mortgage Bankers Association purchase index was down for a fifth-consecutive week last week. To be sure, rising rates have taken some steam out of overall lending activity. But if someone is serious about buying a home, 3.85% on a 30-year loan compared to 3.75% shouldn't keep that person on the sidelines. In short, we'd like to see a few more serious buyers off the sidelines and in the market.

Information provided by 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.

WHY DO THIS?

Just because a piece of furniture is popular doesn’t mean it needs to be in your house. By eliminating a few unnecessary items, your money will stay out of furniture superstores and in your bank account. Plus, the less furniture you have cluttering your house, the more space you’ll have to work, dance and play! Let the de-cluttering and money-saving begin!

HOW TO:

1. 1

   Dresser. Trust us, you don’t need this! Instead, use fabric shelves that hang from your closet bar. Your clothes will all be in one place and you’ll clear up valuable space in your bedroom. To give your closet a full audit, read: Organize Your Closet.

2. 2

   End Tables. If your end tables are magnets for clutter, toss them. Instead, use your coffee table to hold things like magazines, books and the remote control. Then, keep it all organized by using a catch-all table tray.

3. 3

   Chairs. We don’t suggest you throw out every single chair in your house. Then you’d have nowhere to sit! But, you probably have at least a few old chairs in your dining room or living room that almost never get used. Use this BrightNest rule: If the chair hasn’t seen a butt in the past three months, you probably don’t need it.Note: If you use extra chairs during the holidays, store them somewhere out of the way like your attic or basement when they’re not in use.

4. 4

   TV Stand. Ditch this puppy and hang your TV on the wall. You can find kits at your local electronics store for around $30, which is much less than the cost of a new stand.

5. 5

   Ottoman. If you don’t sit on it regularly, or it doesn’t double as storage, it’s simply taking up space! If you want to hold onto it just in case guests arrive, think about floor pillows instead.

   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.

We recently ran across an intriguing data set on CalculatedRiskBlog.com. We were intrigued because the data show the trends in single-family rentals over the past 15 years.

In 2000, renters' share of the single-family-home market was 15%. By the end of 2014, that number was 21%. Every state except North Dakota has seen an increase in the percentage of single-family renters.

Renters are potential (and likely) owners, especially renters who've lived in a single-family home. We've frequently mentioned that if the choice is between owning and renting, most people opt for owning. After all, we want to properly nest: We want to decorate and paint without worrying about forfeiting a security deposit. If we make a capital improvement, we want to own that capital improvement.

We believe more renters will pursue ownership. This will lead to fewer renters and softening rent rates. If this scenario unfolds, more landlords, in turn, will leave the business. This means more homes will be offered for sale.

But even if our scenario fails to unfold, we still think more single-family homes will be offered for sale. Fatigue will become a greater influencing factor. Many new landlords poured into the single-family-home market over the past five years. We suspect that a growing percentage of these newbies are tiring of their investment. Managing rental property is frustrating and time-consuming work. Entropy naturally sets in over time.

In short, we see more ownership demand and more homes offered for sale. These two trends bode well for sales growth in coming years.

Information provided by 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 Jobs Continue to Roll In

Last week we asked – somewhat rhetorically – whether the recovery was really on. If you were to focus on job growth, you'd be hard pressed not to answer “yes.”

Once again, rising economic activity produced another 200,000-plus month of new jobs. Specifically, 257,000 new jobs were created in January. At the same time, the unemployment rate inched up to 5.7%. This might seem a paradox – more jobs and a higher unemployment rate – but it isn't. When job creation ramps up, more people enter (or re-enter) the job market.

More good news was found on the wage front. Wage growth has stagnated in recent years, but is moving higher. The average hourly rate bumped up $0.12 to $24.75 in January. More people working and more people earning more is obviously a good thing.

The job numbers were better than most analysts and economists expected. The unexpected nearly always moves markets. Unexpected job growth resonated throughout credit markets. Over the past week, the yield on the 10-year U.S. Treasury note moved nearly 10-basis-points higher. Because the 10-year note serves as a base rate for the 30-year fixed-rate mortgage, we were unsurprised the rate on this benchmark mortgage loan also moved 10-basis-points higher.

Mortgage rates are higher, but they're still very reasonable. The 30-year loan remains firmly ensconced below 4%, while the 15%-year loan remains firmly ensconced below 3.25%. We say rates are reasonable because the downward trend in oil prices appears to have ended. Oil prices are moving higher. Rising oil prices could lead to more consumer-price inflation down the road. Rising consumer-price inflation could pressure interest rates to move higher.

The overall rate of home-price appreciation is becoming more reasonable (by historical standards). FNC's Residential Price Index was up 5% year over year in December. Trulia's data show that asking prices for homes rose 0.5% in January, or 7.5% year over year.

Prices continue to rise, but at a rate more aligned to historical norms. Normalcy is what market participants want. No one wants a market running too hot or too cold. The closer we get to that Goldilocks equilibrium, the more vibrant and sustainable the market becomes.

We've mentioned frequently the inability for existing-home sales to sustain growth. We think 2015 could finally be the breakout year. Normalized price-appreciation is a factor, but so is the trend in national home rents. Trulia reports rents were up 6.5% year over year in January. The rental market remains tight. A tight rental market makes owning a more viable and desirable alternative to renting.

Information provided by 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.​

Spring is approaching, and it's time for your clients to start planning their lawn and landscaping strategy. Before they start cutting and fertilizing, it's a good idea to review these common myths and myth-busting tips from lawn and landscaping professionals:

Myth #1: You can water your lawn and landscape any time of day.

Reality: Water is a valuable resource; make every drop count! Watering the lawn in the early mornings or evenings after sunset minimizes evaporation. It’s the best time for water to penetrate deep into the soil.

Myth #2: It’s ok to cut the grass very short.

Reality:  Most landscape professionals advise against cutting more than one-third of the grass leaf at a time. Mowing at a finished cut height of 3 to 3.5 inches throughout the summer is generally recommended. The lawn will need less water, will be more resistant to weeds and will have a deeper, greener color. Use a sharp mower blade to prevent tearing grass blades. A crisp and clean cut will help prevent a “brown tip” appearance.

Myth #3: It’s best to water your lawn every day.

Reality:  Watering your lawn every three days is better than daily watering. Deep, rather than shallow watering of your lawn is recommended to nurture the roots. An inch of water to 12 inches of soil is the preferred ratio for watering actively growing grass.

Myth #4: If you want to replace your lawn, you should do it in the spring when plants get ready to bloom.

Reality:  The best time to sow seed is in the late summer and early fall when the temperatures are more consistent and when highly competitive weeds, like crabgrass, are at the end of their life cycle.

Myth #5: Early spring is the best time to fertilize the lawn.

Reality:  Since different species of grass prefer nutrients at different times of the year, be sure to use the correct fertilizer, at the right rate, at the right time, and in the right place. A slow-release fertilizer allows for more even and consistent feeding over a longer period of time than a quick-release fertilizer. And, remember to use fertilizers responsibly by cleaning up any that lands on streets, sidewalks or driveways where they can be washed into lakes, ponds, rivers and streams.

Myth #6: A garden hose is more cost efficient than installing an irrigation system.

Reality:  Many landscape professionals recommend installing an irrigation system with smart controllers which have sensors that water when needed. Smart irrigation can offer a cost savings of 15–20 percent on water bills. Converting irrigation spray nozzles from sprinklers to rotating nozzles will spread heavy droplets of water at a slower pace, which makes them more targeted and effective.

Myth #7: You have to irrigate to have a healthy and beautiful lawn.

Reality:  Grasses are built to endure long periods of drought by entering a state of dormancy. When temperatures and moisture levels are at their extreme, the growing point of the grass plant, the crown, will shut off the grass blades, turning them brow. In almost all instances, once the heat and drought stresses have gone, the crowns will begin to send up new shoots. There’s nothing wrong with irrigating to avoid dormancy, but “embracing the brown” for a couple of weeks in the summer is just fine too.

Information provided by Don Roth.

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.

Source: "Myths vs. reality: How to get your lawn in top shape this spring," Professional Landcare Network (PLANET), the national trade association representing landscape professionals. Feb. 10, 2015