Real Estate Information and Homes For Sale

It's usually a good idea to mix things up week to week; variety helps to hold one's interest. At times, though, the trend – when it's the lead story – simply can't be ignored.

Mortgage rates are the lead story, and they are the lead story because of the trend, which has been up, and up significantly.

When rates rise, they rise for everyone, even if not in equal proportion. That said, rates are at a 14-month high in many markets.

Last week, we offered an explanation for rising rates: “tapering” – the Federal Reserve reducing its monthly purchases of mortgage-backed securities (MBS) and U.S. Treasury notes and bonds. (Not coincidentally, the yield on the 10-year Treasury note, a proxy for the 30-year fixed-rate loan, is also at a 14-month high.) Lower demand on the Fed's part means the yield on these securities must rise to attract private buyers.

In addition, economic growth and job growth have picked up momentum, which also pressures rates to rise.

At this point, we don't expect to see a hard pull back in lending rates. But as we noted last week, the perception that the Fed is “tapering” might be overdone, so we wouldn't be surprised to see rates ease; just don't expect to see a return to the ultra-low rates that prevailed back in November.

The spike in mortgage rates has taken the steam out of refinance activity, and that's to put it mildly. Refinances have suffered four weeks of weekly doubled-digit declines. The latest reported weekly decline, based on MBA data, shows refinance applications were down 15%.

The sharp decline in refinances has caused some consternation, but it shouldn't be unexpected: Much like activity was pulled forward with federal housing tax credits a few years ago, refinance activity was pulled forward by the Federal Reserve's lowering of mortgage rates. The hard economic fact is that rates can go only so low; once the low is reached, refinances will slow.

Purchase activity, in contrast, is more resilient. Purchase applications were down only 2%. We weren't surprise to read a Bloomberg.com article that noted that rising rates were prompting buyers to scurry into action. We've frequently mentioned that rising rates (as long as they are accompanied with economic growth) would prompt more people to act. This appears to be occurring. Unfortunately, action for many is being thwarted by a dearth of housing inventory.

The bottom line is that we've been warning for most of 2013 that the risk in this market is in the waiting. Our opinion remains unchanged.

 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.

Five years ago Bea Johnson and her husband and two sons were looking for a home closer to the restaurants, shops and school in their coastal California town. 

During the year they spent house hunting, the family of four moved into a small apartment, took only the possessions that were absolutely necessary and left the rest in storage.

“After living with just the necessities, we realized that we had much more time to spend with our family when we weren’t spending it caring for a large house and lots of belongings,” says Johnson.

Then, when they did decide on a house, they chose one half the size of their previous home and simplified by selling most of their old stuff.

Around that time, Johnson and her husband began investigating environmental issues. “We read books, watched documentaries, and what we learned worried us and made us sad for our kids’ futures,” she says. “So we decided to do something about it. My husband quit his job to start a sustainability consulting company, and I tackled greening our house.”

It was then that Johnson devised a system to reduce the family’s garbage—she calls it the Zero Waste Home. She started by swapping everything disposable in their home (paper towels, water bottles, grocery bags) for reusables.

Today, she says, her family’s yearly waste can fit in a quart-size jar.

She spoke with LearnVest about how to get started, her zero-waste strategies and the one sustainable habit she’s just not down with.

Information from 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.

During the depths of the housing sell off, when the market was mired in misery, we were one of the few voices of hope. Back then, we were convinced the market would recover and that the prices that prevailed offered exceptional opportunity. Fortunately, we were right on both accounts.

We're still bullish on housing; plenty of opportunities still abound. That said, not all markets offer the same opportunities: some markets are good values, others less so.

We know that many Realtors and agents are active in housing on their own behalf. Renting, rehabbing, and flipping are natural outgrowths of selling. After all, it's rationally worthwhile to take advantage of unique insight and information.

It's also worthwhile to know who's in the market. We've noted in past issues the influx of institutional investor money that has entered residential rental real estate. The large hedge fund Blackstone alone has spent $4.5 billion to buy over 26,000 single-family homes to rent.

The large influx of money has driven up home prices in some markets to the point where value is tenuous, which has prompted some money to leave. Bruce Rose, CEO of Carrington Holding Co., was among the first investors to put institutional money into single-family rentals, but now he's reversing course because rising prices have lowered returns to the point where the risk is no longer justified in the markets where he operates.

The point we want to emphasis is that value matters (it always has), and that a growing number of markets today offer fewer values compared to what was offered in the recent past.

 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.

Mortgage rates have been on a tear lately, and by that we mean they've been rising at a precipitous pace. The rise in the 30-year lending rate has been particularly steep.

Many markets are seeing the highest lending rates of 2013. Other markets are seeing the highest rates over the past 12 months. So what's going on; why the dramatic increase?

Most market commentators point to the Federal Reserve, and when they point to the Fed they frequently invoke the word “tapering,” which refers to the Fed withdrawing from the mortgage-backed securities (MBS) market. Over the past couple months, the Fed's MBS purchases have declined modestly. At the same time, a growing cadre (though still a small minority) of Federal Reserve bank presidents have expressed the need for the Fed to cease purchasing MBS.

The market's reaction has been to sell fixed-income investments, which has caused yields to rise, including the yields of MBS. Because mortgages are the source assets in MBS, it's only natural that mortgage rates have also risen.

Rising rates have taken some steam out of the refinance market. After two sharp weekly declines, refinance applications fell another 12% nationally last week, according to the Mortgage Bankers Association. Refinance activity is the lowest it has been all year.

Purchase application activity has shown more resilience. After falling moderately in the prior two weeks, purchase applications rose 3% in the latest reported week. The fact that purchase activity hasn't been muted by rising rates is reflective of strong housing demand and a strengthening economy.

In the days before the Federal Reserve was active in the mortgage market, rising rates would spark an increase in activity for fear of rates moving higher still. Today, many market watchers expect a rate increase to be followed by a pullback, believing the Fed will again intervene to reverse a rising trend.

Those who head for the sidelines when rates rise might be on to something. To be sure, we believe that higher rates are in our future, but not necessarily in our immediate future. In other words, the thesis behind “tapering” could be overdone; it's not that the Fed is withdrawing from the MBS market, it's that there were simply fewer MBS for the Fed to buy.

We say that because we experienced a lull in mortgage loan originations in March; fewer mortgages means fewer MBS the Fed could buy. But in April, we saw a burst of refinances. Many of these loans will have closed in May, which will lead to more MBS coming to market, and more MBS the Fed could buy.

In short, we're not sold on “tapering” as the Fed's new de facto monetary policy. We need to see a couple months of evidence before jumping on the bandwagon. So don't be surprised if lending rates reverse course and revert to lower ground in coming weeks.

 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 reliable way to find a stud is by using a stud finder tool – a basic model costs about $10-$20 at your local hardware store. If you don’t have one, don’t give up hope just yet. Try this easy stud-finding trick!

You’ll need: painter’s tape, one strong refrigerator magnet (a one-inch diameter is perfect), scissors, pencil, ruler (optional)

1. Cut a six-inch strip of the painter’s tape.

2. Place your magnet in the center of the painter’s tape.

3. Fold the tape over the magnet onto itself. It should form a small sling with the magnet at one end. Make sure there is enough tape on the magnet-free end – you need to be able to comfortably grip the tape.

4. Move your magnet-stud-finder along the wall. Studs are wood, but the nails holding the drywall into the studs are metal! When you drag it over the stud, the magnet will stick to the wall!

5. Mark where the magnet stopped with a pencil and you’re done! You’re ready to hang your wall art.

6. If you want to find multiple studs, measure 16” to the left or right of where your magnet sticks. Studs are typically located 16” apart in a home with 8-foot ceilings.

Tip: If magnets and tape seem like too much effort, or this doesn’t work for you, just look for a wall outlet. Studs will generally be vertically aligned with the outlet. Think of it as the fast-game version of finding a stud.

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've discussed this before, but it's worth discussing again: Rising interest rates won't derail the recovery (both economic and housing). We appear to be in the minority opinion, though; many of our colleagues think otherwise.

Our thesis goes like this: Rising rates will be accompanied by economic and job growth, which means more people will be able to afford a home, along with the cost of higher lending rates.

At this point, more people working trumps historically low interest rates. Moreover, rising rates accompanied with economic growth will spur people to action: If they believe rates are more likely to rise than fall, they will tend to act now instead of procrastinating.

It's also worth noting that we are still in an unnatural lending environment. The Federal Reserve's manipulation of mortgage rates is an anomaly that can't go indefinitely. (The market can take only so much liquidity before serious dislocations occur.) We think the return to normalcy – a lending market based on natural lending rates, economic growth, and job growth – offers many more positives than negatives.

We've had higher mortgage lending rates in the past and have prospered. If higher rates are accompanied with a strong economy, we see no reason why we wouldn't prosper again.

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.

Three weeks and three-consecutive mortgage-rate increases. That's the lead story on the financing-front of housing. The rate on the 30-year fixed-rate loan is up over 20 basis points nationally based on Bankrate.com's survey of mortgage lenders.

In fact, rates are up to levels last seen in late-March and early-April.

There are a couple of variables at work in the mortgage market. For one, the economy and job growth have shown signs of picking up pace over the past month. More economic growth and more job growth means more loan demand, which pressures interest rates to rise.

More recently, speculation over the Federal Reserve and quantitative easing have pushed rates higher. Specifically, investors and speculators believe it's more likely that the latest round of quantitative easing could end sooner than later. The Fed itself has suggested as much: Chairman Ben Bernanke, speaking to Congress this week, didn't rule out the possibility of tapering the latest round of quantitative easing (QE3) by Labor Day if the labor market continues to improve.

Quantitative easing is simply the Federal Reserve injecting money into the banking system by purchasing U.S. Treasury notes and bonds and mortgage-backed securities. The Fed purchases these instruments by creating new money, which it credits to banks' Fed account when the banks sell the instruments to the Fed.

Lately, the Fed has been purchasing theses instruments at the rate of $85 billion per month. The purchases create demand, which, in turn, reduces yield to produce the record-low mortgage rates we've experienced in the past year.

To be sure, Labor Day isn't set in stone, and the Fed is still concerned the labor market could backslide, but it's becoming more apparent quantitative easing won't go on indefinitely. This means a floor has been placed under mortgage rates, so it's become more likely that rates have gone as low as they will go (sans an unseen economic catastrophe).

If housing continues to pick up pace, the Fed will have even more reason to back away from quantitative easing. Housing appears to be picking up pace.

Sales of existing homes increased 0.6% to an annual rate of 4.97 millions units for April. Sales of single-family homes were particularly robust, increasing 1.2% for the month. Existing-home prices also improved strongly. The median price of an existing home increased 4.8% to $192,800 in April – the highest price of the recovery.

We've frequently mentioned that rising prices spur more supply to come to market. That's exactly what's happening. An additional 230,000 units came to market in April. This lifted the supply of existing homes to 5.2 months from 4.7 months at the current sales rate.

On the new-home front, sales growth was even more dramatic, with sales rising 2.3% to 454,000 units on an annualized basis in April. Meanwhile, prices soared, increasing 8.3% to a record median price of $271,600.

That said, new homes aren't pouring into the market like with existing homes: New homes for sale rose only 5,000 for the month, which means inventory remains low at 4.1 months.

In short, the housing market is shaping up nicely as we head into the summer selling season. We expect sales to improve materially as the summer progresses.

 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.

What do a Swiss Army knife and a can of blue paint have in common? They’re both multi-functional! You can probably figure out the knife’s other uses, but what’s up with blue paint? Let’s just say that after you find out, you may start thinking about repainting your porch.

Choosing blue paint isn’t the only design decision that can have hidden benefits. Here are four home décor items that have two (or more) functions you may not know about.

Blue paint can also be ....

Wasp repellant. Few things ruin a relaxing porch session faster than a swarm of angry wasps, and getting rid of them isn’t always easy. Traipsing around with a can of Raid is one option, but here’s another idea: paint your porch ceiling a light blue (like robin’s egg or periwinkle). According to Southern wisdom, the color deters wasps from nesting in your ceiling because it’s a similar hue to the sky. Some people write this off as folklore, but we figure if it works, it works! At the very least, you’ll promote a sense of calmness on your porch.

Solar shades can also be ...

Furniture protectors. If ever there was a décor piece that deserves the Jack-of-all-trades nickname, it’s solar shades. Not only do these puppies create a cool, modern look in any room, they also reduce glare and heat from the sun. Plus, they block out UV rays, which prolongs the life of your furniture. To put your solar-shade excitement over the edge, some designs don’t obstruct your view when they’re drawn. There are a number of options on the market, but the Signature Solar Shades from Blinds.com are extremely popular.

Mirrors can also be ...

Sunlight magnifiers. A full-length mirror’s ability to show you how great your butt looks in those new jeans is well documented. But, depending on the placement of the mirror, it can also be used to brighten up a room! If possible, position a mirror across from a window or other source of natural light – it will reflect the light around the room and brighten things right up.

Sherwin Williams Harmony Paint can also be ...

An air freshener. If you thought paint was only good for adding color to a room, think again. Not only is the Harmony series a zero-VOC paint (good for your health), it also gets rid of house odors (good for your nose). Whether your home-stink comes in the pet, smoke, food or mold variety, Harmony is specifically designed to help freshen things up.

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.

It sounds like a silly question at first blush: Of course, economic growth is our friend. And for the most part, it is.

Economic growth leads to job growth, which, in turn, leads to lower unemployment and higher wages. More people working and earning more money is obviously good for sustaining the housing recovery. We will see higher participation, thus the higher likelihood of sustaining the recovery. (At this point, should we still be calling it a recovery, or simply the housing market?) In other words, housing will resume its rightful mantel as a chief economic driver.

But economic growth won't be all sunshine and lollipops.

With higher economic growth comes higher interest rates on rising consumer and commercial loan demand, and rising investor demand for more yield. Moreover, sustained economic and job growth will embolden the Federal Reserve to withdraw from the mortgage-backed securities market. Without the Fed's current enormous appetite for these securities, mortgage rates will surely rise.

So, yes, economic growth is good, but it won't be so good for potential borrowers who have been lulled into inertia by the false belief that today's interest rates are a permanent fixture of today's lending markets.

   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.

After a couple of months of indifference, sentiment among home builders is once again improving. The NAHB/Wells Fargo Home Builder Sentiment index improved three points to 44 in May, reversing three months of lower sentiment postings.

Home builders have been fretting recently over higher material, labor, and land costs; a still-restrictive lending environment; and a drop off in buyer traffic. (Interestingly, the accompanying report to the index points out that buyers feel a sense of urgency because of the limited number of new homes for sale.)

The rate of starts has been a source of frustration for many home builders. In fact, new-home starts fell more than forecast in April to a five-month low, indicating a pause in the industry’s progress (though the pause was centered mostly on multi-family units). Starts for the month slumped 16.5%, to an annualized rate of 853,000 units, after being revised higher 1.02 million units in March.

The good news – and this likely why home builder sentiment improved – is that the rate of starts will likely accelerate going forward. Building permits surged to a five-year high, increasing 14.3% in April. This points to stronger building activity as we head into the heart of the spring/summer selling season.

Inventory remains an issue, though, and given the slowdown in builder activity in recent months, that's unlikely to change. But we've noted many times that rising home prices will stimulate additional supply – from both home builders and existing home owners.

Data from the NAR point to some progress on the inventory front. In April, the total number of single-family homes, condos, town homes, and co-ops increased 4.1% month over month to 1.75 million in April. Higher prices are prompting more people to list their home, so the market is making progress, though it still has a lot more progress to make: on an annual basis, inventory is still 13.5% below year-ago levels.

That said, pricing points to higher inventory: Zillow, RealtyTrac, Lending Process, Services, Case-Shiller have all produced data that suggest the rising-price trend is sustainable. The latest data from the FNC Residential Price Index, encompassing 100 major metropolitan markets, also show prices rose 5.5% year over year in March.

To be sure, price trends don't last in perpetuity, but the data suggest the trend will likely hold at least through next year in most major metropolitan markets.

Home prices aren't the only thing on the rise, though. Mortgage rates have been rising too. Over the past three weeks, rates have trended meaningfully higher. Much of the rise is attributed to a strengthening economy and a perception of sustainable job growth. This has caused rates to jump 15 to 20 basis points on many 15- and 30-year lending products.

We don't know if we have a trend in the making; one bad jobs report or another European financial meltdown could drop rates once again, but it's worth noting that when rates fall, they tend not to fall far. They might fall by 20 or 25 basis point, but they show little inclination to go any farther.

So this remains the perfect market in many respects: Affordability remains at a multi-decade high, mortgage rates remain at a multi-decade low, jobs and home prices are trending higher. Waiting simply carries much greater risk commensurate to potential reward these days.

 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.