The latest pricing data, from Trulia, show that asking prices rose nationally 1.9 percent in the three-month moving average from February to April. When you look at monthly comparisons, asking prices were up 0.5 percent from March to April.

Of course, asking isn't getting – an asking price isn't the sales price. But we all know that we set prices rationally. It's important not to waste time on an unrealistic asking price. In other words, Trulia's data suggests that prices are rising, and rising strongly, in many markets. This, in turn, suggests that we should expect higher reported sales prices from S&P/Case-Shiller and Corelogic in the near future.

Seeing a rising national asking price is nice, but it's really meaningless to any particular market. The price trend in Denver has no bearing on the price trend in Philadelphia or vice versa. The same can be said for most combinations of any two markets.

What we find interesting, though, is the price trends in the most hardest hit areas – such as Phoenix and Miami – are posting double-digit increases. If we've said it once, we've said it numerous times over the past couple years: markets clear. In other words, prices fall to reach a level where they draw sufficient interest to clear inventory. Once inventory clears, prices again start moving higher.

Clearing markets is painful but salutary, and maybe not as painful as our expectations lead us to believe. We mentioned a couple weeks ago what turned out to be the non-issue of an explosion in option ARM defaults that were expected to sink the market. That never occurred.

The foreclosure overhang that everyone has been talking about for the past six months also appears to be a non-issue. CNBC reports that the number of homes entering foreclosure is up for April, but is still down more than 30 percent from a year ago.

Earlier this year, most financial outlets were lamenting impending doom once banks started foreclosing in earnest and dumping properties on the market. Lost in all the rhetoric was the fact that bankers are rational. Short sales, deeds-in-lieu, re-negotiation make a difference, and they've been on the rise. Bankers don't want to upset markets, especially through mass REO sales.

The lesson here is that it's rarely the anticipated that upsets market; it's mostly the unanticipated. The distressed property overhang has been anticipated and is being dealt with accordingly and rationally.

What we anticipate, and what we would like to see at this point are more accommodating lending standards. The current overly strict standards is the number one hindrance to the recovery in our opinion. To be sure, mortgage lending rates remain at historical lows, and that's good for those able to get the rate. But what we really need are rates and mortgage products to accommodate all borrowers needs, not just those with 800 FICO scores.

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.

A recent Reuters article had that reproaching quality. The article pointed out that more than one million Americans who had taken out a mortgage in the past two years are now underwater: The implicit lesson being, according to Reuters, that they should have waited and that they should have put more money down.

The reality is that it's impossible to call a market bottom, but in the long term it's nearly always better to buy into a market after a precipitous drop than after a precipitous rise. In other words, whoever bought or refinanced a house over the past two year has made a smart decision that will work out to his or her advantage over the next five years. 

The good thing about real estate is that it's nearly always a long-term investment. Better yet, it's a long-term investment that doesn't continually bombard and upset owners with price updates. That means Reuters attempt to alarm likely fell on deaf ears, and that, too, is a good thing.

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.

It’s likely you’ve heard the term “short sale” thrown around quite a bit. But what, exactly, is a short sale?

A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property. This is not a new practice; banks have been doing short sales for years. Only recently, due to the current state of the housing market and economy, has this process become a part of the public consciousness.

To be eligible for a short sale you first have to qualify!

To qualify for a short sale:

• Your house must be worth less than you owe on it.
• You must be able to prove that you are the victim of a true financial hardship, such as a decrease in wages, job loss, or medical condition that has altered your ability to make the same income as when the loan was originated. Divorce, estate situations, etc… also qualify.

Now that you have a basic understanding of what a short sale is, there are some huge misconceptions when it comes to a short sale vs. a foreclosure. We take the most common myths surrounding both short sales and foreclosures and give a brief explanation. LET’S BUST SOME MYTHS!!

1.) If you let your home go to foreclosure you are done with the situation and you can walk away with a clean slate.  The reality is that this couldn’t be any farther from the truth in most situations. You could end up with an IRS tax liability and still owing the bank money. Let me explain. Please keep in mind that if your property does go into foreclosure you may be liable for the difference of what is owed on the property versus what is sells for at auction, in the form of a deficiency balance! Please note this is state specific and in most states you will be liable for the shortfall, but in some states the bank may not always be able to pursue the debt. Check your state law as it varies widely from state to state.

Here is an example of how a deficiency balance works 

If you owe $200,000 on the property and it sells at auction for $150,000, you could be liable for the $50,000 difference if your state law allows it.

Not only could you be liable for the difference to the bank, but in some situations you could also be liable to the IRS! Although there are exemptions (mostly for principle residences) under the Mortgage Debt Forgiveness Act, there are times when you could be taxed on both a short sale and a foreclosure, even in a principle residence situation. Since the tax code on this is a little complicated and I am not a CPA, I advise always talking to a CPA when in this situation as you are weighing your options. Hard to believe?  Well, believe it or not, the IRS counts the difference between the sale and the charged off debt as a “gain” on your taxes. That’s right-you lost money and it’s counted as a gain! (I didn’t make that rule, that’s a wonderful brainchild of the IRS). Banks and the IRS can go as far as attaching your wages. Not to mention if you let your home go to foreclosure you will have that on your credit, as well.

Guess What?  A short sale can alleviate your liability to the bank, in most situations. There are also exceptions to this, but in most cases banks are releasing homeowners from the deficiency balance on a short sale.

2.) There are no options to avoid foreclosure. Now more than ever, there are options to avoid foreclosure. Besides a short sale, loan modifications along with deed in lieu are also examples of the many options. In most cases (but not all) a short sale is the best option. Either way, there are more options today than there have ever been to avoid foreclosure.

3.) Banks do not want to participate in a short sale, or, it is too hard to qualify for a short sale. Banks would rather perform a short sale than a foreclosure any day. A foreclosure takes a long time and creates a huge expense for the banks; a short sale saves both time and money. Banks have more foreclosure inventory than ever before, and certainly do not want any more. Banks more than ever welcome short sales. Qualifying for a short sale is easier than you think, you need to have a true financial hardship, or a change in your finances and your house has to be worth less than what you owe on it. Not only do consumers, but banks also now have government incentive to participate in short sales.

4.) Short sales are not that common. At this present time, short sales range from 10-50 % of sales in various markets and it is predicted that in 2012 we will have more short sales than any other year, to date. Due to economic changes in the last few years, this is something that is affecting millions of Americans. Short sales are in every market, and are not just limited to any particular income class. This has affected everyone from all facets of life. A short sale should be looked at as a helpful tool, not a negative stigma. That is why the government is offering programs that actually pay consumers to participate in short sales. It is not just affecting one community; it is affecting communities and consumers across the nation.

5.) The short sale process is too difficult and they often get denied. Though the short sale process is time consuming; it is not as difficult as the media would have you believe. The problem is that most short sales are denied because of a misunderstanding of the process.  It is true that if the short sale process is not followed correctly there is a good chance of getting denied. An experienced agent knows how to avoid this. Short sales require a lot of experience, and a special skill set. If you are looking to go the option of a short sale make sure your agent is skilled and experienced in this area.

6.) Short sales will cost me money out of pocket.  A short sale should not cost you any out of pocket money. In fact, you could get between $3000-up to $30,000 to participate in a short sale. In many ways, a short sale may put you in a better financial position than prior to the short sale. Almost every short sale program now has some type of financial incentive for the home owner, as long as it is a principle residence, and we are even seeing relocation money being paid on some investment/second homes. As a seller of a property you should never have to pay for any short sale cost upfront to any professional service. Realtors charge a commission that is paid for by the bank. In most communities there are also non-profits and HUD counselors who can help you with foreclosure prevention options for free. The only potential cost you could incur is if the bank would not release you from a deficiency balance in the short sale, which is happening less and less now.

7.) If I am behind on my payments, I can perform a short sale any time. The farther you get behind on your payments, the harder it is to get a short sale approved. The closer a property gets to a foreclosure the harder it is to convince the bank to perform a short sale. As they get closer to a foreclosure sale more money is spent, thus deterring them from doing a short sale. If you think you need to perform a short sale, time is of the essence; the sooner you start the process, the better. Waiting too long can trigger the ramifications of a foreclosure, losing the ability to do a short sale as a viable option.

8.) I have already been sent a foreclosure notice so I can’t perform a short sale. For the most part just because you received a foreclosure notice or notice of default it does not mean that you do not have time to perform a short sale. The timeline and specifics do vary from state to state, but having done short sales all over the country, I have seen banks postpone a foreclosure to work a short sale option as close as 30 days prior to the scheduled foreclosure auction, but the longer you wait the less chance you have. If you have received a legal foreclosure notice, please reach out to a professional right away. The longer you wait, and the closer you get to foreclosure, the fewer options you have. If you have received a notice to foreclose this means the bank is filing paperwork and starting the process to take legal action to repossess the house. You still have time at this point to prevent foreclosure, but do not hesitate! The closer you get to the foreclosure date the harder it becomes to negotiate with the bank for whichever option you choose.

9.) I was denied for a loan modification, so I know I will get denied for a short sale.  Short sales and loan modifications are handled by two separate departments at the bank. These processes are totally different in approval and denial. If you got denied for a modification you can still apply for a short sale; in some cases you can get a short sale approved faster than a loan modification, as some loan modifications are denied because they cannot reduce the loan low enough based on the  consumers income.

10.) If I go through a short sale I cannot buy another house for a long time. The time to buy another house depends on your entire credit picture and can vary from 12-24 months. There are even a few FHA programs that allow for a purchase sooner than that. I have worked with clients who went through a short sale and bought another house in less than 12 months.

These are just a few of the common myths surrounding short sales and foreclosure. With the options available today, no homeowner should ever have to go through foreclosure, and hopefully this information can help a few more homeowners think twice before walking away from their home not realizing the possible long term ramifications a foreclosure can have.

The results are in and there is a great improvement in Harrisburg PA real estate sales for the first quarter of 2012 increased by 18.1% compared to the first quarter of 2011 according to the Central Penn Multi List. The area covered by the Multi List is the greater Harrisburg including all of Dauphin, Cumberland and Perry counties and portions of York, Lancaster and Lebanon counties. AND the number of homes sold, not settled, has increased by 20% since the end of 2011.

Not all categories are positive as of today. The days on market category, homes that have sold but not taking into consideration homes that are still on the market or are no longer for sale still is increasing, but at a substantially slower pace than in previous quarters. Also, the average sales price has declined again but the percentage decrease is slowing considerably.

The bottom line is that the Harrisburg PA real estate market is improving faster than many would have expected just a few months ago and I anticipate that all price points will see positive results moving throughout the rest of 2012. We still see plenty of inventory but in the price ranges under $225,000 there is more of a balanced (six months or less) inventory levels and I anticipate that the other price categories to improve although it will be a slower process. With a good supply of inventory and still extremely attractive mortgage interest rates I am anticipating continued improvement in the real estate market locally.

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.

With that thought in mind, home prices have been volatile in 2012, which has lead to volatile sales data. But though prices have been volatile, they have been trending higher. S&P/Case-Shiller's 20-city composite home price index shows prices increased 0.2 percent in February compared to January.

Though the S&P/Case-Shiller index is the most monitored index, it's a little stale, being two months in arrears. We were more interested in contemporary price data released by Zillow, which show home values were up 0.5 percent in its 30-market index. Zillow believes 19 of the markets it follows have either hit bottom or are expected to hit bottom by the end of the year. Zillow chief economist Stan Humphries advises, "For people who have been waiting to time their home purchase close to market bottom, it’s time to start shopping.

”Not to pat ourselves too hard on the back, but we've been offering similar advice for the past six months. Now, no one can precisely call a bottom, but you can get a “vibe” in your market through experience and information. More of the vibes and much of the information is turning positive in many local markets. To be sure, bad news can still be found, but if you wait for nothing but good news, the bottom will have long been gone.

Existing home sales prove that the news still isn't all good. Sales for March came in softer than expected, posting at 4.48 million annualized units, a 2.6 percent dip from February. The good news is that market dynamics appear to be shifting from mostly low-end homes to higher-end ones: the median national home price rose a strong 4.6 percent to $163,800.

As for new homes sales, the news was decidedly good. New home sales posted a better-than-expected 328,000 annualized units in March, after being revised strongly upward to 353,000 units in February. The national median sales price dipped 1 percent, to $234,500, in March, but we'd be surprised not to see a price rebound in April, because of a dearth of new homes. In fact, the supply of unsold new homes fell to just 144,000 in March – the fewest on record dating to 1963.

Mortgage rates, meanwhile, continue to skim along the bottom, though they're showing no inclination to move meaningfully lower. Again, we can't stress enough the risk/reward paradigm in the mortgage lending market: Even after a spat of bad economic news in Europe, rates hardly moved. This suggests to us that waiting for still lower rates means incurring a great deal of risk for little reward.

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.

This is actually good news, because it points to pent up demand when you consider that the historical homeownership rate ranges between 65 percent and 66 percent.

We're aware of many media reports that point to a change of culture in the housing market; that is, a change toward a renting culture from a buying one. We don't buy it, at least not for the long term. Ask anyone if he or she would prefer to live in a neighborhood of renters or owners. Most, we assure you, prefer owners.

Many people were spooked by the dramatic price declines that occurred over the past four years, so it's likely that many people when questioned on homeownership were speaking more out of fear than knowledge. Now that it appears that prices have stabilized, we expect more of these people to regain their bearings and consider what they really want – and that's to buy a home and to live in a neighborhood of homeowners.

As we mentioned above, prices matter – and today's low home prices simply won't stay this low indefinitely. After a couple more months of favorable pricing data, that fact will resonate with more prospective buyers.

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.

Fannie Mae and Freddie Mac to Streamline Short Sales to Help Borrowers and Communities

New Timelines Take Effect in June

Washington, DC – The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure. The effort will come in stages with the first taking place this June. The new, aligned timelines include the requirement that mortgage servicers review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.

"FHFA and the Enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities," said FHFA Acting Director Edward J. DeMarco. "These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives."

With the alignment, servicers will be required to do the following:

1. review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package;
2. provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days;
3. make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

By the end of 2012, Fannie Mae and Freddie Mac will announce additional enhancements addressing borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance. 

This is a good move in the right direction and if other mortgage lenders would follow the uncertainty for many homeowners and their communities will improve.” 

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.

Many home builders had expected the volume of signed contracts to pick up at a faster pace by this time of year. Unfortunately, that hasn't been the case. Recent economic data over the past month point to a sputtering, if not stalled, economy.

The latest housing starts data, no doubt, impacted home builder sentiment. Starts dipped 5.8 percent in March after decreasing 2.8 percent in February. The March pace of 654,000 annualized units fell far below market expectations for 700,000 units. March's drop was driven by a nearly 20 percent decline in multifamily starts. Home builder sentiment might be down on volume, but it should be up on price. We were all somewhat concerned on the direction prices were taking at the beginning of the year, but that appears to have changed for the better in many markets. According to RE/MAX's latest price report, home prices in the 53 largest cities it follows increased 5.8 percent year-over-year, with the median sales price rising to $184,525, in March.

It's worth noting that RE/MAX CEO Margaret Kelly shares our sentiment on markets and prices, in that real estate markets are local, wholesale price declines are behind us, and prices are stabilizing and improving. Ms Kelly says, "Although we don't expect home prices to rise in every market at the same rate, the worst is definitely behind us, and a slow, steady recovery is taking hold." We couldn't agree more.On the other hand, we don't necessarily agree with many of our colleagues on mortgage lending rates. Rates have been volatile and mostly lower over the past two weeks. Rates are again near an all-time low. This has created another spurt of refinancing. Rising interest rates shook many borrowers back to reality. When rates dropped, borrowers didn't want to miss an opportunity that could prove fleeting.

Taking advantage of these low lending rates is a smart move. We've laid out a case over the past couple months on why we think interest rates will head higher, at least in the long term. No new data have convinced us otherwise.

Admittedly, it's impossible to predict interest rates with certainty in the near term, but a few factors are worth considering: We've seen a marked increase in rate volatility that has moved the market back to a sideways trend. To be sure, rates could be higher or lower over the next month, but given their proximity to all-time lows and their unwillingness to move lower, we think there's more risk than reward in waiting for still lower rates.

Last month, lending rates shot up nearly 50 basis points, which shocked many borrowers. Those who thought they missed the boat got lucky, but they might not be so lucky on the next lending rate spike.

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.

We came across some persuasive musings at Calculatedriskblog.com that lead us to believe that the distressed properties market might not be as bad as all that.

The author references Lending Processing Services data, which show about two million properties in the foreclosure process and another 1.7 million loans 90 days or more delinquent. Many of these loans, though, are in judicial states. They will still take considerable time to work through the courts, the author reasons. In other words, it's hard to imagine a huge wave of foreclosures, if anything it will be more like a sustained high tide in many judicial foreclosure areas.

There are also other extenuating factors at work that are often overlooked: we have lenders offering cash incentives to do short sales; government-sponsored rent-to-own programs that allow banks to hold properties as rentals; and HARP 2.0, which allows underwater borrowers to refinance and stay in their homes.

Distressing news always outsells uplifting news. The good news is the distressing news is rarely as distressing as it first appears. Remember the disaster that was supposed to occur on the huge Option ARM reset a few years ago? If you don't, don't worry; neither do a lot of other people.

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.

Welcome Home. The relocation guide to Central Pennsylvania!

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.

Rates have bumped off a little from their historic bottoms of February, but the modest movement should not create any additional disturbance or turbulence for the housing market. Even in the worst-case scenario, the eighth percentage point increase in a loan’s interest rate is probably not enough to ruin most deals. Especially since that slight increase could be ‘brought down’ through the payment of approximately a half-point fee, perhaps less.

It should be no surprise to anyone who has applied for a loan recently that banks are being much more careful. A new repost indicates just how tight conditions have become – and how even borrowers with favorable credit profiles are being denied. Loans closed by banks and mortgage lenders in February had borrowers with an average credit score of 750; this average is up from 740 six months earlier, and an average loan-to-value ratio of 76%, with the average denied loan having a credit score of 699 and a loan-to-value ratio of 83%.

While there is no hard downshift in economic activity, research shows that essentially, with the new spring housing season approaching, we are in the same boat, just with more favorable mortgage rates. An accumulation of February data and early data available for March suggests that activity is stabilizing with a softer trend beginning. Federal Chairman Bernanke’s reassurance about the direction of interest rates doesn’t hurt either, in terms of trimming any upward pressure for current rates. 

Recent weekly data is reinforcing the notion that a cooler economic climate is in formation. Claims for new unemployment benefits moved downward in January to a rate which is the lowest it has been in 4 years. However, the unemployment benefits rate does not incorporate in statistics about workers who are under-employed. Approximately 9.3 million workers are considered underemployed as defined by the Bureau of Labor Statistics. That number is up from just over 8 million in July 2011, but down from a peak of approximately 9.5 million in September 2010. Overall, employment gains for March will be no better nor no worse than February.

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.

According to the Chicago Federal Reserve National Activity Index – (an economic gauge which uses some 85 indicators to determine if the economy is growing faster or slower than its ‘potential’) – came in at a diminutive negative -0.09 for February 2012; down from a relatively brisk +33 in January. With the use of these figures, this puts GDP growth just shy of 2.8% for the month. 

In February, orders for durable goods moved to 2.2% higher. This positive news was a tad below economic expectations, and was not as much of an anticipated recovery from the 3.6% decline in January. However, it is very common to see swings from negative to positive and back again in durable goods ordered, while the current percentage holds its own.

Courtesy of Jessica Regan.

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When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Please review the chart below and see what the impact is on a projected mortgage payment. Yes, there may be some pull back in rates for a while but as I said in a blog last week we never intentionally hit the bottom of the rate cycle until after it has passed. If you need any additional information on interest rates or homes that are available for sale please contact me at Don@DonRoth.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.

Rates have pulled back slightly, but they remain elevated compared to February's lows. We expect them to remain elevated. Markets appear less risk averse: Investors are no longer huddling behind U.S. Treasury securities every time Greece hiccups. The major stock market barometers – the Dow Jones Industrial Average and the S&P 500 Index – are approaching four-year highs.In short, investors want more return. They are less satisfied with the 2% return offered on 10-year U.S. Treasury notes, which makes these notes more risky. If more investors demand a higher coupon payment, more investors will sell low-coupon Treasury securities, thus forcing the yield on these securities to rise.

As U.S. Treasury note and bond yields go so goes mortgage-backed securities yields and so goes mortgage lending rates. We are not terribly concerned though. We don't think rising rates will crimp the housing recovery, because higher economic growth and rising employment will more than offset higher interest rates.

Home builders appear to share our sentiment. The National Association of Home Builders sentiment index shows optimism has risen to a five-year high. This suggests to us the bust is officially over and that housing is on sustainable growth trajectory.

That said, housing starts did edge down in February, but from an upwardly revised January posting. Permits were the positive takeaway, increasing 5.1% for the month.Last week we mentioned that if we saw a reversal of fortune in Las Vegas, then the housing recovery has likely turned the corner and become a nationwide phenomenon. This might just be serendipity, but, lo and behold, the FDIC reports that single-family home permits in Nevada increased 16.1% in the fourth quarter of 2011 compared to the fourth quarter of 2010. Maybe miracles really do happen.

Like new-home sales, existing-home sales are also displaying sustained strength. Sales dipped slightly – by 0.9% to 4.59 million annualized units – in February, but the data follow an extremely strong and upwardly revised January sales posting. Over the past six months, sales have been trending perceptibly higher.

We are further encouraged by the trend in existing home prices, which have been firming and moving higher in 2012. The median price of an existing home moved up 1.3% to $156,600 in February.Overall, we like the direction the housing market has taken. We also like the idea of mortgage markets moving to more normalized, market-driven pricing. We think this points to a much stronger, sustainable market over the long term.

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 report basically expounds many of our concerns: The Federal Reserve's low-rate policies are discouraging private money from entering the mortgage-backed securities market, which means many lenders have to adhere to the strict standards of Fannie Mae and Freddie Mac. Having the market dominated by the Federal Reserve and two government-backed entities attenuates private credit formation.

Rising mortgage lending rates would draw more private capital into the market, which means there would not only be more credit but more credit that would meet the demands of a more diverse group of borrowers.To be sure, the spike in rates we've seen over the past week has taken the wind out of the refinance boom. But as more borrowers realize that higher rates are more likely than lower rates, more borrowers will be motivated to act and more lenders will be motivated to lend.

It's also worth remembering that even if mortgage lending rates rise above 5%, the monthly payment on a median mortgage would make up only 14% of the current median income, because homes are so affordable these days. Rising rates would not disrupt the market, they would simply reset expectations to market reality.

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.

I have been asked by many people “how is the market and is this a good time to buy or sell a home?” My answer is absolutely, and yes! I assist buyers and sellers in most likely their largest financial transaction that will occur, and my answer is absolutely. Why? As I have been saying interest rates are at or near historic lows and there is only one direction they are going and that is up, almost guaranteed. As with the price of a home and the comment of I am going to wait until they hit bottom. Well, my answer is that we never know where the bottom is until they have already begun an upward trend. And if I was that smart to figure out the bottom, I would be spending more time on the beach rather than giving you an analysis of what appears to be an improving real estate market. Will there be challenges ahead? Absolutely, but remember when prices were keeping many people from buying a home? Well, you now have a once in a lifetime opportunity to purchase a home at a unique time in our history.

Remember there is an excellent inventory of homes in all prices ranges so to find your next home please visit my web site, www.DonRoth.com, and click on the search listings tab and find the most current list of available homes for sale.  

Harrisburg PA Real Estate Sales Statistics - Feb 2012

West Shore School Districts

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

Camp Hill                    $125,900                                 $155,900                     184/90

Carlisle                        $168,012                                 $199,130                     160/155

Cumberland Valley      $266,689                                 $283,057                     162,116

East Pennsboro            $115,960                                 $189,075                     101/67

Mechanicsburg             $210,978                                 $165,354                     89/174

Northern York                $215,025                                 $173,206                     139/154

West Shore                    $169,636                                 $156,007                     90/114

East Shore

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

Central Dauphin        $201,096                                 $156,527                     177/115

Derry Twp                  $309,625                                 $216,863                     70/124

Harrisburg                  $ 46,628                                  $ 59,924                      121/111

Lower Dauphin          $213,853                                 $227,433                     55/145

Middletown                $179,925                                 $ 79,419                      163/93

Steel High                   $69,500                                   $ 42,633                      65/142

Susquehanna Twp     $195,471                                 $129,294                     131/125

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 will be discussing how lenders can get more business from the Realtors® they are associated with. What can a lender do to garner an agent's referrals? What makes a Realtor want to recommend a lender to his/her clients? Is bringing brownies to an agent's office an effective way to get business? Or is offering marketing tools a better way to gain an agent's trust? Where does social networking fit into the mix?

Networking and referrals from other Realtors® - the easiest and cheapest form of advertising. I'll tell lenders everything they need to know about getting referrals from a Realtor!

Lenders can hear all this an more at the April 19 conference. It is an event you won't want to miss!

April 19, 2012, 2:30 to 3:30 pm
Pennsylvania Credit Union Association 
4309 North Front St.
Harrisburg, PA  17110

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 combination of low rates and HARP 2.0 alone is enough to send business through the roof. Now we get word the Obama administration wants to allow more homeowners to refinance by dropping fees on federally insured mortgages. The administration's plan has the FHA dropping upfront insurance premiums on streamline refinances from 1% to 0.01%. The FHA would also drop annual premiums from 1.15% of the loan balance to 0.55%.

There is one catch: the lower fees only apply to borrowers who took out loans before June 1, 2009 . Still, lower-fee FHA loans are expected to help two to three million borrowers refinance.

The prospect of rising mortgage demand is worth keeping in mind as we head into the spring and summer selling season. Lenders will be busy, and sometimes very busy. Our advice, which we've offered in the past, is not to wait. For buyers, home affordability has never been better; for refinancers, rates have never been lower.

Given the present market dynamics, we think the risk of waiting to refinance or to buy a home far outweighs the possible reward of a lower home price or a lower interest rate.

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.

Everyone is keeping a close eye on distressed properties. Now that last year's “robo-signing” foreclosure imbroglio is behind us does that mean we will see a surge in foreclosed and REO properties? And if so, how will they impact inventory and prices?

Pertinent questions, to be sure, and ones we don't have a ready answer for. We do know that the inventory of existing homes for sale declined 21%, or by 600,000 units, in 2011. At the most recently reported sales pace, that means we are looking at 6.1 months of supply – the lowest inventory level since April 2006. Lower supply supports higher prices.

Today's low inventory is attributed to falling foreclosure volume. But now that banks are free to foreclose, two million more homes are expected to hit the market over the next two years. If that's the case, then distressed inventory will rise sharply. Returning to economics: higher supply leads to lower prices.

There are a few extenuating factors though. The economy is improving, and continues to add jobs at an increasing rate. The private sector added 216,000 jobs last month, according to the latest national employment report from Automatic Data Processing. That's a significant increase over the 173,000 jobs added in January. More people working means more people who can afford a home.

The rise in REO properties could be offset by a decrease in other market segments. For instance, there was a significant increase in short sales in the fourth quarter of 2011, which pushed the number up to nearly 910,000 units nationwide. That said, the long-term trend for short sales is down; fewer short sales could be a counterweight to rising REO units.

Housing formation is another attenuating factor. After 2007, household formation plummeted to 300,000 per year from its historical rate of 1.25 million. We see a lot of pent up demand. The population continues to grow, the economy continues to improve, home affordability is at a multi-decade high. The market is ripe for a spike in new household formation.

In short, we don't expect new REO properties to upset the housing recovery like the more dire pundits are predicting.

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.

A pre-approval is one of the greatest assets a home buyer can get.

Pre-approval is a written assessment of your worthiness for a loan. When you seek pre-approval for a home loan, your lender will assess your ability to pay, as well as your credit history, to decide how much they are willing to lend you.

Although you can make an offer and go through to the start of property settlement without having pre-approval, smart home buyers get pre-approval before they make an offer.

Really smart home buyers get pre-approval before they even start going to home opens.

Here’s why you should, too:

1. You get a better choice of properties. When you visit a home open and talk to a real estate agent, letting them know that you have pre-approval is a sure-fire way to get them to take you seriously as a buyer. Once a real estate agent knows you’re serious about buying, they’re likely to call you about potential properties before they’ve even hit the market, giving you a better choice of properties, and potentially cheaper deals.

2. You get a better deal. To sellers, pre-approval is almost like a guarantee that the deal they strike with you won’t fall over. Sellers want certainty, because if the buyer they choose can’t get finance, the seller will have to start marketing their property all over again. To them, this certainty is worth money – I’ve seen plenty of deals where the seller has accepted a lower offer because that buyer had pre-approval and the higher offers didn’t.

3. You won’t waste time looking at homes you can’t afford. Getting pre-approval will give you a much better idea of what homes are within your price range, so you’ll know in advance which properties are too pricey to waste your time on.

4. You won’t have your heart broken. Imagine falling in love with a property and even going so far as to make an offer on it – only to find out at that it’s out of your price range! Save yourself the disappointment of having a deal fall through by knowing in advance what you can (and can’t) afford.

If you’re planning to buy a home, get a pre-approved home loan from your chosen lender. Your seller, real estate agent, and settlement agent will thank you for it – and you’ll be glad you did.

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