Real Estate Information and Homes For Sale

The quick answer is that war is good for nothing, at least according to the 1969 Edwin Starr song. We won't argue that there are many “bads” associated with war and that the associated costs – both monetarily and in personal suffering – are very high.

But if the United States does go to war with (or simply strikes at) Syria, there is one upside – interest rates will very likely fall further. We say this because more investors will seek havens in U.S. Treasury notes and bonds and mortgage-backed securities. Demand for these securities will keep mortgage rates from rising, and will likely force them lower.

We're not saying we relish the thought of another military conflict, but it's important to deal in market reality. And the reality is that borrowers will likely see a reprieve in mortgage rates over the next week or two. But how long the reprieve lasts is anyone's guess. Therefore, we don't suggest waiting long to act.

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.

Slow, But Steady

Thanks to the long Labor Day weekend, the flow of housing and mortgage news was reduced to a trickle this week. That said, there were still a few news items worthy of mention.

Mortgage rates were one such item. They continued to ease this week, with the 30-year fixed-rate mortgage down roughly 10 basis points. This marked the second-consecutive week of noticeably lower rates, which, in turn, stimulated refinance activity.

It's no secret that refinances have plummeted this summer on rising interest rates. Should rates hold steady or continue to ease (no sure thing), we'd expect refinances to gain further ground. Our optimism is based on rising home-equity values, which are pulling more mortgage-indebted owners above water, thus enabling them to refinance their higher-rate loans.

Mortgage rates have easily dominated financial headlines over the past few months. Many market watchers have wondered aloud if rising rates will slowdown, if not derail, the housing recovery? (We wonder if we should still be calling it a recovery at this point?)

To be sure, there is reason for concern: Real estate firm Redfin reported in its Real-Time Homebuyer Survey that 63% of its respondents say rising rates are making it more difficult to buy a home.

We don't doubt that's true. But we think the main issue is still sluggish economic growth. We've frequently mentioned that rising interest rates wouldn't necessarily be bad if accompanied with higher economic growth (and job growth, in particular). If we go back a decade ago – when lending rates were 150-to-200 basis points higher than they are today – buying and financing activity was brisk. Not coincidentally, economic growth was also brisk.

Unfortunately, today we've got higher interest rates and economic growth still hasn't fully kicked in. This is another reason we remain unconvinced that Federal Reserve tapering of Treasury notes and bonds and mortgage-backed securities is imminent. Our skepticism suggests to us that mortgage rates are unlikely to move materially higher in the near term.

Another topic we've frequently hashed over is market composition. Specifically, the need for the housing market to be driven more by owner-occupied buyers instead of investor/landlords.

We have nothing against investors or landlords, but a normalized healthy housing market is driven by the owner-occupied buyer. We say that because communities composed mostly of owner-occupied buyers tend to be more stable and better maintained than communities of renters.

A new research paper from the University of North Carolina at Chapel Hill underscores our contention. In particular, the paper focuses on the adverse effects of “renter's disconnect,” which includes less property upkeep, fewer property improvements, and more aloofness with neighbors. None of these are conducive to rising property values.

The good news is we're seeing a return to a more normalized market: Despite talk of the United States becoming a nation of renters, surveys from Fannie Mae, Freddie Mac, and other sources point to a populace that overwhelming wants to own. That's good news that ensures housing will remain an important economic driver for years to come.

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.

Next time someone close to you buys a house, stand out from the “standard bottle-of-wine” crowd with one of these useful gifts. They’ll guarantee you barbecue invites for life.

Their favorite magazine (in subscription form). Some may call print magazines old school, but who doesn’t secretly appreciate any real, not-a-bill mail? Give your friends a positive reason to check their new mailbox with a magazine subscription. If you aren’t sure what they’d like, a home-related ‘zine is always a safe bet as a housewarming gift. Think Dwell or Better Homes and Gardens.

A “favorite things” jar. Wine and flowers are great, but sometimes all a new homeowner needs is a good cleaning product. Give them the gift of your favorite things – like cleaning products that you swear by – in a large jar like Julie at Coordinately Yours. They’ll be able to use the jar for decoration and organization and use the jar’s contents around the house. Bonus: This gift comes across as really personal and is usually a bargain (depending on the price of the “favorite” items you gift).

Address stamp. Even if the internet is your friend’s most frequent form of communication, they’ll have to address a letter or package eventually. Why not help them do it in style? Give them a stamp of their new address, so they’ll be ready to write their housewarming gift thank you cards. There are a ton of unique options on Etsy, so you can choose one that fits your homebuyer’s personality.

Handy toolkit. If this new home is a first home, chances are your friends don’t have the necessary tools to tackle every little issue. Step up to the plate and be the home-disaster hero by gifting a tool kit. We like this one from Stanley because it has just about everything under the sun (65 pieces!). Tip: If your friend or family member could use some help figuring out where they should use their tools, give them the BrightNest New Homeowner Guide, too.

Counter-top compost bin. Compost bins are better than a flower bouquet for three reasons: you want the contents to be dead, you can reuse everything inside and they help Mother Earth. A countertop compost bin works just as well as its backyard brethren and is an affordable gift at about $25 a pop.  If your friend is new to the compost scene, give them this list of 10 items to avoid composting and send them on their eco-friendly way.

Information courtesy of 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 word “taper” seems to be on everyone's lips these day. As we note above, the Federal Reserve holds the key to higher interest rates. Most market watchers are simply waiting for the Fed to cut back (or “taper”) its purchases of Treasury notes and bonds and mortgage-backed securities. The consensus belief is that when tapering begins, rates will rise.

That could be true. But then again, market's are anticipating entities. It's also possible that any interest-rate increases won't be very pronounced, because once tapering begins, its effects will already be built into lending rates.

The same market watchers are also speculating on how the Fed will tape: will it taper purchases of both Treasuries and mortgage-backed securities, or only taper Treasuries? If it tapers only Treasuries, it's possible that mortgage rates won't be effected, at least that's the prognosis we've heard.

We're not so sure that how tampering materializes matters, because Treasuries are benchmark instruments. The 10-year Treasury note, in particular, is very influential on the 30-year fixed-rate mortgage. As one goes, the other follows in lock-step.

The point we want to emphasis is that regardless of how the Fed tapers it will impact the mortgage market. Unfortunately, we simply don't know the magnitude of the impact.

   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 End of Rising Home Prices?

When recent data is vetted, the answer appears “no.” Home prices will continue to rise.

The latest data from S&P/Case-Shiller show prices increased 0.9% month over month in its 20-city index in June. Year over year, Case-Shiller shows prices are up 12%. Meanwhile, data from Lender Processing Services show home prices were up 1.2% for June, which translates to an 8.4% year-over-year gain.

We frequently refer to price data from a number of providers, and you might have noticed that the numbers are never the same. We'll use Phoenix as an example. The latest data from the major data sources show year-over-year home-price gains for Phoenix, but the numbers differ.

S&P/Case-Shiller           FHFA                CoreLogic         LPS                  FNC                  Zillow

19.8%                           21.2%               17.1%               16.6%               27.5%               22.0%

Time frame, geography measures, and data-gathering methodology are responsible for the differences: CoreLogic uses a three-month moving average. Case-Shiller's definition of a metropolitan is generally broader than the other data service providers' definition. Zillow excludes foreclosure resales, whereas LPS “reflects” price discounts for REO and short sales. FNC attempts to capture the “characteristics” of a home sale in its home price index.

The good news is that prices are up all the way around, no matter how they're measured.

That said, Case-Shiller's latest release did reveal incidences of slowing price appreciation. We're not terribly surprised; we've been saying double-digit annual price increases are unsustainable for the long haul. We wouldn't be surprised to see year-over-year home-price growth dip into the single digits by the end of the year.

That said, we don't believe home-price appreciation will be hindered by rising mortgage rates – as long as the economy improves. On that front, gross domestic product (GDP) growth was revised upward to a 2.5% annual rate for the second quarter. This is good news that points to stronger-than-expected growth for the third quarter. Strong GDP growth, in turn, frequently leads to stronger job growth.

Strong GDP growth will also lead to rising mortgage rates, which actually retreated this past week. Last week, we mentioned that the Federal Reserve is the primary driver of interest rates these day. This isn't to say that other factors don't matter. This past week, talk of a U.S. military strike against Syria was ramped up. In response, many investors scurried for the havens of Treasuries and mortgage-backed securities, thus sending their yield lower.

We don't believe concerns over Syria will be long lasting. Therefore, the reduction in lending rates is likely a temporary reprieve that potential borrowers should exploit.

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.

Having “hard water” means that your water supply contains high levels of minerals like calcium and magnesium. While hard water is generally harmless to drink, it can damage your boiler and clog your pipes, which are expensive to repair or replace (a new boiler can cost as much as $10,000!). To prevent these problems, it’s important to identify and remove hard water by installing a water softener. Use these steps to test for hard water.

1. Fill your plastic bottle with about 10 ounces of water from your kitchen sink. Add about a teaspoon of liquid dish soap, close the plastic bottle and give it a good shake. If the soap foams up naturally, you probably don’t have hard water and can end your test at this point. If it doesn’t foam, but instead forms a milky film at the top of the bottle, hard water could be an issue and you need to continue the test.

2. If you have public water, contact your local water utility and ask them for a recent hard water reading. If you have a private well, you’ll need to test your water yourself. Contact your local department of health and ask them which labs in your area can test your water. You can usually send a sample of your water to them and have it tested for free. It’s generally best to avoid home tests, which can be inaccurate and unreliable.
    
3. Check your results. Hard water is generally measured in grains per gallon (GPG) of dissolved minerals. If your water has more than 4 GPG, your hard water levels are considered high.
    
4. If your GPG is 4 or higher, it’s a good idea to install a water softener to reduce your levels. A water softener can cost anywhere from $100-$3,000 depending on the model, method of softening and water volume requirements of your house. It’s also a good idea to have your water softener professionally installed, which can cost $100-$600.

Until the recent past, interest rates were driven by the economy: recession or expansion, job growth, inflation, risk aversion, productivity, etc. These factors would converge to form an interest rate that best reflected consumers and investors expectations.

It's different today. The Federal Reserve is the overriding factor in lending markets. Everyone is trying to game the Fed's next move on quantitative easing. Specifically, everyone is attempting to forecast when the Fed will begin tapering its purchases of Treasury notes and bonds and mortgage-backed securities. The Fed's purchases – its demand – for these instruments is largely responsible for the low lending rates we've enjoyed over the past few years.

The chief reason mortgage rates moved so high so quickly in past months is that many market watchers expected the Fed to begin tapering next month. Markets, after all, are anticipating entities (they act on expectations), so mortgage rates naturally move higher on the prospect of higher rates.

Based on the minutes of the last meeting of Fed governors, the Fed is unlikely to begin tapering as early as September. Inflation remains low and job growth remains sluggish. We don't expect either to pick up soon, which is why we think tapering could be delayed until later in 2013, and possibly into 2014.

But as long as market participants are anticipating higher interest rates, there is a good chance rates will continue to rise. (Paradoxically, when the Fed actually begins tapering – when expectations become reality – rates could actually fall.)

Needless to say, this is confounding market, but it's still one in which we think it's more prudent to act today than to wait and anticipate tomorrow.

  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.

Expectations Theory Sways Markets

Existing-home sales soared to 5.39 million annualized units in July, far surpassing the consensus estimate for 5.12 million units. The NAR cited “panic” over rising interest rates for the surge in buying activity.

“ Panic” might be an overstatement. Expectations, more than anything, was the likely motivator. More consumers, shocked by the spike in lending rates that occurred two months ago, expect both interest rates and housing prices to push higher.

Therefore, it's understandable that buyers acted as they did. The past – at least the near-term past – is frequently prologue.

On the lending front, rates have moved to a higher plateau compared to the plateau they occupied earlier this year. This past week, mortgage rates moved notably higher again, as if they were attempting to reach an even higher plateau. Rates today are about where they were two years ago.

Rising rates have jarred memories: Everyone today now realizes rates don't move only down; they also move up.

A few years ago, it appeared home prices could move only down. Since then, price action continues to prove that's hardly the case.

The median price of an existing home rose to $213,500 in July, a 13.7% increase from July 2012. This marked the 17th-consecutive month where prices have increased year over year. As improbable as this might seem, the national median price is a mere 7.3% below the all-time high of $230,000 that existed seven years ago.

It can be dangerous to extrapolate a trend indefinitely; trees don't grow to the sky, submarines don't descend to the depths of the ocean. But trends can hold for a while. We expect both trends – higher mortgage rates and higher housing prices – to prevail into the relevant future.

The Federal Reserve assures us that mortgage rates will occupy a higher plateau. (We further explicate this subject below.) Home prices will remain at a higher plateau as well. Inventory remains tight, and buyer interest continues to expand.

Just as important, the composition of the housing market is as healthy as it has been in years: Foreclosures and short sales continue to drop as a percentage of overall sales. Concurrently, price appreciation continues to lift more owners above water.

Expectations point to less affordable housing in the future, so it's perfectly logical to act (buy) on those expectations today.

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 cost of buying a Harrisburg PA home is going up. What's behind the rise in interest rates? Is now still a good time to buy? Here's an interesting video explaining a little bit about why mortgage rates are rising. There's also a little bit in here about how "staying on the fence" could lead to a higher monthly payment.

Rates are still historically low and it's a great time to buy. Wondering if now is the time for your to buy a Harrisburg PA home? Give us a call! We’ll help lay out your options so you can make an informed decision.

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.

For the past six weeks, mortgage rates have been placid – trending in a very tight band. Next week, they could break out of the upper band. We say that because the 10-year U.S. Treasury note – a benchmark lending rate – has broken out to the upside. As the 10-year note goes, so, too, usually goes the 30-year fixed-rate mortgage.

Over the past few months, we've frequently opined that the days of the 3.5% 30-year loan that prevailed earlier this year were gone and were unlikely to return anytime soon. At the same time, we've opined that rates are primed to rise. We continue to hold these opinions to this day.

That said, we don't see mortgage rates moving materially higher in the short term. Economic growth remains anemic, and job growth continues to lag behind the Federal Reserve's target rate. Therefore, the institutional imperative supports keeping rates low.

Our assessment of the mortgage-rate environment points to mildly rising rates (perhaps five to 10 basis points). Longer-term – over the next year – the probabilities overwhelming point to rates moving higher, which is why we continue to say that the risk in this market resides in procrastination.

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.