Don Roth's Blog

Fee Increase to Impact Home Loans

Wed, 01 Feb 2012 03:00:00 GMT

In December 2011, Congress reached a last-minute deal to fund the payroll tax cut extension. The payroll tax extension will provide a 2% tax reduction for individuals earning up to $106,800, so the tax extension will be very helpful for many Americans who are struggling during these tough economic times. But like so many things in our tangled economy, there's a flip side. In this case, the tax cut deal has a rippling effect that will impact the mortgage world.

Here's what's happening and what it means to home loan rates:

What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac (the nation's largest providers of mortgage money) to increase their guarantee fees or "g-fee's" by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But as you probably know...home loan rates are priced and offered in .125% increments, so this will most likely impact the consumer by .125% in rate. Whether you agree or not on the politics behind this cost being passed along to folks who are taking out mortgages, the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax extension.

What exactly is this "g-fee"?

The guarantee fee or "g-fee" is an amount charged by mortgage-backed securities (MBS) providers, like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In other words, it acts a lot like insurance and helps lower the overall risk...which means home loans can be offered at terrific interest rates to borrowers that have good – but not perfect – credit.

What exactly is the impact of the rate increase?

For example, for a $200,000 home loan, the increased g-fee (assuming a .125% increase in rate) would equate to $250 more per year in interest, or $7,500 more over 30 years. Someone buying or refinancing a home can certainly choose to buy down the cost with cash up front – but most folks will not do this.

Who will this impact?

The change will impact all new borrowers of Fannie Mae and Freddie Mac loans. The bill will also impact Federal Housing Administration (FHA) loans by increasing the annual mortgage insurance premium that borrowers pay by one-tenth of a percent.

When will it start?

Officially, the increase to guarantee fees will begin on April 1, 2012. However, the increase is already starting to be seen in rate sheets right now, since home loans being originated now will likely not be closed, pooled and securitized until April.. .and therefore will need the increased g-fee priced in earlier.

How long will this be in effect? The increase will be effective through October 1, 2021.

The bottom line is that the g-fees will be going up... and this will impact homebuyers looking to obtain a home loan through Fannie Mae, Freddie Mac and FHA.

The good news is that home loan rates are still at historic lows right now, and it's a great time to purchase a new home or refinance. If you or anyone you know has any questions, please call or email!

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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.

Harrisburg PA Mortgage Market Recap - Jan 31 2012

Tue, 31 Jan 2012 03:00:00 GMT

The data on housing were mixed this past week, but we would say that, for the most part, they listed more positively than negatively.

Last Friday, the NAR reported sales of existing homes rose 5 percent to an annual rate of 4.61 units in December. This marked the third-consecutive month of sales growth. This latest increase helped reduce inventory to 2.38 million units, the equivalent of a 6.2 month supply at December's sales pace.

Pricing was the one bugaboo in the NAR's data. The median price for an existing home was $166,100 for 2011, a 2.5 percent drop from 2010 and the lowest median price since 2002. This is a disappointment, but hardly a disaster. We’ve said many times that national numbers usually lack a meaningful connection to local markets.

The news on distressed properties was a little more encouraging. RealtyTrac reports that homes in some stage of foreclosure dropped 11 percent in the third quarter of 2011 compared to the previous quarter. Of course, part of the improvement is due to the ongoing matter of banks working through last year's auto-signing imbroglio. That said, our own anecdotal evidence suggests an improving distressed-property market.

The new-home market is also improving, just not so obviously. New home sales eased 2.2 percent to an annual rate of 307,000 units in December, which pushed inventory up to a 6.1 month supply. Like existing-home prices, new-home prices were also pressured for the month, with the national median price dropping to $210,300.

Recent new-home data suggest that December's numbers might just be a hiccup: Homebuilder sentiment has improved markedly in recent months, as has the longer-term sales trend.

Speaking of trends, the trend in mortgage rates is expected to hold for the long term. On Wednesday, the Federal Reserve stated that interest rates will remain low until at least through 2014, pushing back a previous date of mid-2013. According to Federal Reserve data, the economy simply isn't growing at the pace it had expected.

The impact of the Fed's revised policy was both immediate and palpable. Before the announcement, the 10-year Treasury note yield had been creeping higher and was yielding 2.06 percent just before Fed Chairman Ben Bernanke stepped up to the mike. After he had stepped down, the yield had dropped to 1.96 percent.

So it appears low base mortgage rates are with us for the long term, but that doesn't mean low-cost mortgages are. A recent increase in fees Fannie Mae and Freddie Mac charge lenders will push costs higher. Expect the fee increase to raise borrowing costs a quarter percentage point.

It's worth pointing out that we said “appears” in connection with low mortgage rates. Nothing is certain where the economy and investor behavior is concerned. To be sure, if we were forced to place a bet, we’d likely bet on January 2013 mortgage rates matching January 2012 rates. We suspect most everyone else would place that same bet. That fact, in and of itself, is a contrarian indicator that rates aren't necessarily destined to stay at today's levels.

Courtesy of Jessica Regan.

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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.

Buy Low, Be Happy

Tue, 31 Jan 2012 03:00:00 GMT

HomeGain.com, an online real estate marketing firm, recently released a study on homeowner satisfaction. HomeGain found that homeowners with the lowest cost basis were the happiest. Specifically, HomeGain found homeowners who acquired their properties for less than $75,000 were the most satisfied.

Now, HomeGain's survey might seem like an exercise in belaboring the obvious, but it's proof that price really does matter. Despite what has occurred in housing over the past four years, if you purchased a $75,000 home a few years ago, you're likely ahead on your purchase (which is why you're satisfied).Though it might be obvious, HomeGain's point is, nevertheless, worth driving home to our clients. Price matters, and it matters a lot. Buying at a sufficiently low price can offset many sins.

Low prices are found mostly in depressed markets, which is the housing market today. Depressed markets are ephemeral, so if we want to maximize our clients' happiness in 2020, it behooves us to impress upon them the importance of buying today.

Courtesy of Jessica Regan.

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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.

Harrisburg PA Mortgage Market Recap - Jan 26 2012

Thu, 26 Jan 2012 03:00:00 GMT

If you meet a home builder, don't be surprised if his gait is imbued with a little more pep and his voice tinctured with a little more enthusiasm, for his mood has likely been lifted by optimism these days.

The latest home builder sentiment index shows that builders are expecting more construction, more sales, and better pricing for 2012. The index moved up an impressive four points to 25 in January. This is the best reading since mid-2007 and marks four-consecutive months of sentiment improvement.

A cynic might counter that home builders are getting ahead of themselves. After all, housing starts did fall 4.1 percent, to an annualized rate of 657,000 units, in December. That said, a few details are worth exploring. November was an unexpectedly strong month for starts, and the fact remains that December's starts still adhere to an established uptrend. If you look back to February 2010, you'll see month-over-month improvements revealed in higher lows and higher highs.

Permits suggest more of the same going forward. Permits in December inched up 0.1 percent to an annualized rate of 679,000 units, which is a 7.8 percent improvement over December 2010. The gains aren't spectacular, to be sure, but we're not looking for spectacular, we're looking for sustainable. We think the gains are sustainable.

The trend in mortgage purchase applications has been encouraging to both home builders and existing-home sellers. Purchase applications jumped 10.3 percent in the January 13 week, the best posting in a month. Removing the holiday hiatus, the trend in purchase applications has been mostly up over the past few months.

The trend in refinance applications has also been up, and to a much greater degree than purchase applications. Refinance soared 26.4 percent in the latest reported week, hitting an activity level unseen since August 2011.

Mortgage rates inching lower to another multi-decade low was one factor in the surge in mortgage activity. But the increase in fees for loans purchased by Fannie Mae and Freddie Mac starting April 1 is the more influential factor. This increase translates to a 0.125 percent to 0.25 percent increase in mortgage cost (though some pundits argue that longer-term these are low-end estimates). The fees are already being implemented, but they've been offset by the mortgage-rate drop that has occurred over the past month.

We think the days of record-low mortgage financing are numbered. Fannie's and Freddie's fee increase will obviously raise costs. The revamped version of the Home Affordable Refinance Program, HARP 2.0, will also pressure mortgage rates higher due to a surge in mortgage demand: rising demand usually means rising costs.

Bottom line: we think it's advisable to act now on a refinance or a purchase to avoid the possibility of getting tangled in a refinance boom that many industry watchers are expecting to emerge in the next month or two.

Courtesy of Jessica Regan.

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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.

More Normalcy in Store for the Future

Thu, 26 Jan 2012 03:00:00 GMT

Last week we reasoned that it would be years before housing activity would return to levels seen in the mid-2000s. That's not such a bad thing; the mid-2000s proved to be an unsustainable bubble market.

We also said markets are on the mend, which is why we expect 2012 to be a more active and a more remunerative year for those of us in the real estate and mortgage businesses. Even CoreLogic, which has a history of focusing on negative data, recently reported that improved employment, more liquid households, and record home affordability levels could ignite a minor housing recovery in 2012.

Not to pat ourselves on the back, but we've been beating the drum for a sustained housing recovery (not a minor one) since the beginning of the fourth quarter of 2011. We didn't embrace this position because of any special prescience; it was just a matter of understanding basic economics. Markets drop only so far and then they rebound. The data last year suggested the bottom was near and markets were set to turn. That's proving to be the case, and we expect that to continue being the case for this year and years to come.

Courtesy of Jessica Regan.

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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.

Harrisburg PA Real Estate Sales Statistics 2011

Wed, 18 Jan 2012 03:00:00 GMT

To say that the Harrisburg PA real estate market was a challenge may be an understatement. In the news there were the continuous reminders that the market was not what it was four or five years ago. And although we had to work our way through all the negatives, such as short sales, foreclosures and buyers not being able to obtain financing our market was pretty resilient. For the month of December 2011, total sales were down 3% compared to December 2010 and the average sales price decreased 4% for the same period. For the full year of 2011 the number of sales decreased 6% and the average sales price declined by 4%. When compared to a majority of areas in the United States these numbers would have been hailed as a great year. But there are some head winds ahead before we see a reversing trend of the last few years. Most likely there will be a greater number of foreclosures and short sales in 2012 which could negatively impact values for a period of time but even though these two items have been impacting our market to a degree there were buyers and homes were being sold. So I am anticipating by the middle of the year we may reach a stable market and although I don’t see a substantial upturn in the average sales price we will begin to see some positive results in the second half of the year.

What does it take to sell a home with a almost record high number of homes on the market and the average time extending? Your home must be seen through the prospective buyers’ eyes and what do they perceive the value in your home. It doesn’t matter what the neighbors home sold for a year ago or what improvements you have made the buyer will determine the value or they are off to see some of your competition. That is the harsh reality of the Harrisburg PA real estate market today but as I say that I have heard of multiple offers on certain homes in all price ranges. So my recommendation is hang in there and if you are considering the sale of your home you are probably going to be able to purchase a home that two years ago you thought was out of your price range. So there is hope as a buyer and seller when you also take into consideration of the extremely low interest rates available today. Please look below the chart for some additional assistance.

West Shore

School District 2010 2011 Days on Market

Camp Hill $215,883 $203,863 63/109

Carlisle $154,839 $169,884 81/110

Cumberland Valley $276,633 $268,674 109/143

East Pennsboro $130,418 $202,236 86/82

Mechanicsburg $226,874 $191,669 110/111

Northern $175,276 $212,333 65/105

West Shore $167,412 $184,375 104/124

East Shore

School District 2010 2011 Days on Market

Central Dauphin $172,623 $179,880 89/86

Harrisburg $ 60,680 $ 50,400 134/145

Lower Dauphin $219,950 $295,000 53/162

Derry Township $189,216 $264,355 103/72

Middletown $154,048 $111,686 114/66

Steel High $ 51,443 $ 31,500 122/119

Susquehanna Twp $153,279 $131,405 111/159

You can go to my web site, www.DonRoth.com and click on the search listings tab and you have the ability to preview ALL active listings in any region of the area. Or if you would like contact me and I can establish an Neighborhood Activity Report which will provide you with a periodic report near your home to monitor recent activity. I have said before that we would be exiting this down turn and now I really believe that we are near the beginning of a normal Harrisburg PA real estate market.

Harrisburg PA Mortgage Market Recap - Jan 16 2012

Mon, 16 Jan 2012 03:00:00 GMT

It's really all about the economy at this point. Fortunately, the economy is moving forward, albeit at what too-often seems a plodding pace.

But moving forward we are. The Federal Reserve noted as much in its latest rendering of its Beige Book, a report of anecdotal evidence of economic progress in the dozen Fed districts. The Beige Book states, "Compared with prior summaries, the reports on balance suggest ongoing improvement in economic conditions in recent months, with most districts highlighting more favorable conditions than identified in reports from the late spring through early fall.

”Now, that attempt to say something without saying too much doesn't really enlighten, but it does affirm what we've known all along – the economic recovery is progressing.

Home prices might also be progressing better than the national numbers suggest. Zillow Inc. reports home prices were flat in November, with the average national home price at $147,800. But the housing market is a local market, and local markets appear to be improving better than the national numbers report (which can be skewed by outliers, e.g. Las Vegas ).Of the 165 housing markets tracked by Zillow, 60 percent reported stable or appreciating home values in November. Notable winning locales include Los Angeles, Washington D.C, Miami , San Francisco , and Detroit.

The flow of private money into housing is also encouraging. We've noted over the past month that hedge funds, investing platforms for the wealthy, are directing more funds into housing stocks. In addition, Robert Shiller, co-inventor of the S&P/Case-Shiller Real Estate Index, noted at a recent American Economic Association function that the futures market for real estate (basically bets on the direction of home prices) is pointing to rising prices.

We expect interest in residential real estate to further bloom in 2012. Homes are enticingly affordable these days. U.S. Department of Housing and U.S. Treasury Department data show that home affordability is at a level unseen since 1971. In fact, median-income families today have double the funds needed to cover the cost of owning a home than they did 40 years ago.

Historically low mortgage rates also contribute to the affordability quotient, and rates continue to skim along the bottom, as they have done for the past two months.

But rates aren't the only consideration in the cost of a loan. Fees come into play. Unfortunately, borrowers face higher fees in the near future. The guarantee fee on loans sold to Freddie Mac and Fannie Mae is set to increase a minimum of 10 basis points effective April 1. Many industry watchers, though, expect the actual cost to fall within the 20-to-80 basis-point range.

Today, affordability is at a multi-decade high, and mortgage rates are at a multi-decade low. We see few economic reasons for anyone in the market for a mortgage and house not to take the plunge.

Courtesy of Jessica Regan.

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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.

Patience: The Most Important Virtue

Mon, 16 Jan 2012 03:00:00 GMT

We are always keen to accentuate the positive; we are also keen to accentuate reality. The reality is that a return to 2006-era home prices and transaction activity likely resides in the distant future.

We looked at other bubbles that have burst – the stock market in 1929, the gold market in 1980, the tech market in 2000 – and found that it can take years, if not decades, for the market to return to pre-bubble levels. As we all know, the housing bubble burst in full in late 2007/early 2008 and prices tumbled hard over the subsequent three years.

The good news is that the hard sell-off that marks a bursting bubble is an acute not a chronic event. That means once the sell-off is complete, the healing process begins and markets move forward, thought at a relatively slower pace compared to the pre-bubble pace.

The frustrating aspect of the recovery is that little can be done to accelerate it. To be sure, the housing market is recovering, but it's going to be awhile before it reaches the level of activity we were accustomed to a few years ago. Keeping that fact in mind not only helps mitigate frustration but also helps us stick to our guns as we focus on the long-term trend, which, fortunately, will be up.

Courtesy of Jessica Regan.

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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.

Harrisburg PA Real Estate Sales Decrease

Fri, 13 Jan 2012 03:00:00 GMT

Sales recorded for the Central Penn Multi List decreased by 4% for all homes recorded including Perry County, portions of Lancaster, Lebanon and York Counties.

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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.

Harrisburg PA Mortgage Market Recap - Jan 9 2012

Mon, 09 Jan 2012 03:00:00 GMT

We've said that strong job growth will be key to a successful 2012. Early signs are encouraging. Automatic Data Processing (ADP) reports that private payroll numbers surged 325,000 in December – more than double expectations for a 160,000 increase.

The news on jobs is definitely good, but it's important to keep expectations tempered. This time last year, ADP reported that private employment jobs increased by 297,000. That bullish number got more than a few economists and pundits thumping for a full-bore recovery. Unfortunately, job growth abated and practically stagnated through the summer months of 2011.

That said, we remain encouraged. The Bureau of Labor Statistics (BLS) reports that unemployment is, for the most part, dropping across the nation. The BLS's data show that 58 metropolitan areas reported jobless rates above 10 percent, but that's down from 112 a year earlier. Another 129 areas reported jobless rates below 7 percent, nearly double the 65 areas reported in November 2010.

So it appears employment is on the rise, which bodes well for improved home sales in 2012. Prices are another reason we should see more sales. Standard & Poor's data show current home prices when adjusted for inflation are at 2001 levels. In other words, homes are very affordable. When homes are very affordable, more homes will be sold and more markets will clear.

We've provided many examples of markets clearing over the past few months. Beleaguered Las Vegas is the latest example. DataQuick reports that home sales increased 11.2 percent year-over-year in November, with sales being driven by below-$200,000 homes. Prices are low in Las Vegas, to be sure, but the days of free-fall depreciation appear to have ended, with the median home price holding at $115,000 for three consecutive months.

Mortgage rates contribute to the affordability quotient. On that front, mortgages remain very affordable. In fact, over the past week the 30-year fixed-rate loan again touched a new low. This should come as no surprise when you see that the 10-year U.S. Treasury note also touched a new low, with its yield dipping below 1.9 percent.

Rates remain low thanks to the ongoing debt crisis in Europe , which continues to draw money to U.S. Treasury securities even though these securities don't yield enough to compensate for inflation. That's good news for borrowers, especially borrowers on the longer end of the spectrum – such as those seeking 30- or 15-year fixed-rate loans.

Is it worth waiting for even lower rates? We didn't expect to see sub 4-percent loans in 2011, so anything is possible. But you have to consider what's probable. With job growth accelerating and consumer confidence rising, it appears the economy is growing sufficiently to suggest any further rate drops will be measured in a few basis points.

At this point, it's really all about risk and reward. Today, the reward is very high, but we think the risk will likely rise with more evidence of improving economic growth.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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.

The One Fly In The Ointment

Mon, 09 Jan 2012 03:00:00 GMT

Housing is still dealing with some difficult issues – namely shadow inventory and negative equity. The former has shown much improvement based on data released during the last quarter of 2011; the latter will be helped by HARP 2.0, which is expected to be fully engaged by March.

The good news is economic and job growth will continue to remove rot from the system; that is, if buyers and borrowers are sufficiently motivated to act. Unfortunately, we see too few buyers and borrowers sufficiently motivated. The one question we field most often these days is, “Are mortgage rates going lower?” Embedded in the question is the belief that rates are going lower, which keeps too many people on the sidelines.

Our wish list for this year includes a stronger economy, more jobs, and more confident consumers. We'd also like to see a ratcheting up of interest rates. That way, borrowers prone to procrastination will be less prone to procrastinate when they realize that any uptick in rates won't be followed by two downticks.

What's more, rising rates will be indicative of the sustained economic growth we all want.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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.

Harrisburg PA Mortgage Market Recap - Jan 4 2012

Wed, 04 Jan 2012 03:00:00 GMT

The news is understandably slow the week between Christmas and New Year's Day. The most notable release was last Friday's news on new home sales, which rose to an annualized rate of 315,000 units in November, a 1.6-percent gain over October.To be sure, we have a long way to go until we reach the normalized construction rate of 1.5-million units per year. Nevertheless, we expect the new-home market to gain pace in 2012. After all, there are only 158,000 units in inventory. Even at the current slow sales pace, this equates to a record low six-month supply.

Over the past three years, new-home construction has fallen far below historical norms and also below the level needed to keep pace with population growth. The fact is our country gains roughly 2.7 million people and one million new households annually.

You might not see supply as a problem. We are all familiar with the glut of distressed properties. Indeed, Bank of America expects eight million distressed homes to come to market over the next four years. These homes, we've so often heard, will continue to depress new home construction.

We view B-of-A's outlook with a skeptical eye. There is a likely prospect that many of these distressed properties will simply go away. Destruction is too frequently overlooked in many supply projections. A house is not a permanent structure. Many are destroyed by fire, wind and flood each year. Many more are lost through simple decay and abandonment. Based on U.S. Census data, 300,000 homes are lost annually. That number will surely rise in years to come.

In short, the math – low inventory plus more households minus more home destruction – suggests to us a rebound in new-home construction. We are not alone in this contention, either. Wells Fargo projects that housing starts will continue to rise each year for the next five years before reaching once again the normalized construction rate of 1.5-million units annually by 2017.

Of course, projections are one thing, betting on those projections is another. Here, we see an encouraging trend. Big money is starting to wager on housing. The Wall Street Journal reports that many large hedge funds are investing billions in housing-related investments. Other investors have followed suit. Shares of homebuilders are up 30 percent over the past three months, making them one of the best performing investments in the market.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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.

Up For a New Year?

Wed, 04 Jan 2012 03:00:00 GMT

As we approach the end of the old year nearly all of us stop to ask, “How will the new year unfold?” Of course, none of us know with any certainty the answer to that question, but it can be insightful (and fun) to ponder. So, how will 2012 unfold, at least as it pertains to the housing and mortgage markets?

Both markets will obviously be influenced by economic growth, which, in turn, will spur job growth. We see a pick up in economic growth and job growth in 2012.The economy has been growing at a sluggish rate for too long now. The United States is unique in that Americans tire of pessimism quicker than most other cultures, and then we do something about it. In our opinion, rising consumer confidence points to a lot of pent-up demand that is waiting to bust loose, and will bust loose in 2012.

A pick up in demand, in turn, necessitates new hires. In fact, a recent survey by CareerBuilder.com found that nearly one in four employers is keen to add new permanent full-time employees. These employers are simply waiting for a clear sign the coast is clear. We think they will get that sign in the first quarter of 2012.

Greater economic activity will obviously impact the housing market. We see accelerated sales volume in both the new and existing home markets. We also expect to see prices stabilize in the first half of the year, and then appreciate perceptibly in the second half.

As for the mortgage market? This is much more difficult to call. The Federal Reserve has stated it intends to hold rates low through 2012. However, all it takes are a few persuasive signs that the economy is back on track, and the Fed could easily backtrack from its stated goals. All we can say is that we would be much less surprised to see mortgage rates 50 basis points higher six months from today than 50 basis points lower.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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.

Harrisburg PA Tax Rates For 2011

Tue, 03 Jan 2012 03:00:00 GMT

Hampden Township in Cumberland County had the lowest property tax rates in the Harrisburg area in 2011, according to a Patriot-News analysis. If you own a home worth about $100,000 there, you would pay $1,077 in school, county and municipal taxes, according to the analysis. Compare that to Harrisburg, where a $100,000 home would set you back $3,194 in taxes, or Highspire, where it would cost you $3,408.

These are 2011 figures. Taxes will be going up in 2012 in many locations.

CUMBERLAND COUNTY

CAMP HILL

Population: 7,888
Median household income: $58,910
School tax: 12.96 mills
County tax: 2.04 mills
Municipal tax: 3.02 mills
Total tax: 18.02 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,802
Median value house: $187,700
Assessed value on median house: $187,700
Tax on median house: $3,382

CARLISLE

Population: 18,682
Median household income: $45,074
School tax: 12.26 mills
County tax: 2.04 mills
Municipal tax: 3.06 mills
Total tax: 17.36 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,736
Median value house: $163,700
Assessed value on median house: $163,700
Tax on median house: $2,842

EAST PENNSBORO TOWNSHIP

Population: 20,228
Median household income: $59,923
School tax: 10.31 mills
County tax: 2.04 mills
Municipal tax: .96 mills
Total tax: 13.31 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,331
Median value house: $155,900
Assessed value on median house: $155,900
Tax on median house: $2,075

HAMPDEN TOWNSHIP

Population: 28,044
Median household income: $81,498
School tax: 8.57 mills
County tax: 2.04 mills
Municipal tax: .16 mills
Total tax: 10.77 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,077
Median value house: $224,300
Assessed value on median house: $224,300
Tax on median house: $2,416

LEMOYNE

Population: 4,553
Median household income: $49,609
School tax: 9.0 mills
County tax: 2.04 mills
Municipal tax: 2.10 mills
Total tax: 13.14 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,314
Median value house: $124,700
Assessed value on median house: $124,700
Tax on median house: $1,639

LOWER ALLEN TOWNSHIP

Population: 17,980
Median household income: $58,486
School tax: 9 mills
County tax: 2.04 mills
Municipal tax: 1.23 mills
Total tax: 12.27 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,227
Median value house: $155,600
Assessed value on median house: $155,600
Tax on median house: $1,910

MECHANICSBURG

Population: 8,981
Median household income: $53,716
School tax: 12.17 mills
County tax: 2.04 mills
Municipal tax: 2.58 mills
Total tax: 16.79 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,679
Median value house: $155,800
Assessed value on median house: $155,800
Tax on median house: $2,616

MIDDLESEX TOWNSHIP

Population: 7,040
Median household income: $53,939
School tax: 8.57 mills
County tax: 2.04 mills
Municipal tax: .998 mills
Total tax: 11.61 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,161
Median value house: $155,000
Assessed value on median house: $155,000
Tax on median house: $1,800

MONROE TOWNSHIP

Population: 5,823
Median household income: $78,050
School tax: 8.57 mills
County tax: 2.04 mills
Municipal tax: .473 mills
Total tax: 11.08 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,108
Median value house: $191,700
Assessed value on median house: $191,700
Tax on median house: $2,124

MOUNT HOLLY SPRINGS

Population: 2,030
Median household income: $38,594
School tax: 12.26 mills
County tax: 2.04 mills
Municipal tax: 1.37 mills
Total tax: 15.67 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,567
Median value house: $113,200
Assessed value on median house: $113,200
Tax on median house: $1,775

NEW CUMBERLAND

Population: 7,277
Median household income: $50,901
School tax: 9 mills
County tax: 2.04 mills
Municipal tax: 2.9 mills
Total tax: 13.94 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,394
Median value house: $148,400
Assessed value on median house: $148,400
Tax on median house: $2,069

NORTH MIDDLETON TOWNSHIP

Population: 11,143
Median household income: $62,152
School tax: 12.26 mills
County tax: 2.04 mills
Municipal tax: .69 mills
Total tax: 14.99 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,499
Median value house: $152,000
Assessed value on median house: $152,000
Tax on median house: $2,278

SHIREMANSTOWN

Population: 1,569
Median household income: $46,979
School tax: 12.17 mills
County tax: 2.04 mills
Municipal tax: 1.9 mills
Total tax: 16.11 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,611
Median value house: $158,200
Assessed value on median house: $158,200
Tax on median house: $2,549

SILVER SPRING TOWNSHIP

Population: 13,657
Median household income: $72,574
School tax: 8.57 mills
County tax: 2.04 mills
Municipal tax: .8 mills
Total tax: 11.41 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,141
Median value house: $193,600
Assessed value on median house: $193,600
Tax on median house: $2,209

SOUTH MIDDLETON TOWNSHIP

Population: 14,663
Median household income: $67,073
School tax: 8.93 mills
County tax: 2.04 mills
Municipal tax: .17 mills
Total tax: 11.14 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,114
Median value house: $180,000
Assessed value on median house: $180,000
Tax on median house: $2,005

UPPER ALLEN TOWNSHIP

Population: 18,059
Median household income: $69,722
School tax: 12.17 mills
County tax: 2.04 mills
Municipal tax: 1.29 mills
Total tax: 15.50 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,550
Median value house: $182,300
Assessed value on median house: $182,300
Tax on median house: $2,826

WEST PENNSBORO TOWNSHIP

Population: 5,561
Median household income: $59,221
School tax: 12.1 mills
County tax: 2.04 mills
Municipal tax: .26 mills
Total tax: 14.4 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,440
Median value house: $149,600
Assessed value on median house: $149,600
Tax on median house: $2,154

WORMLEYSBURG

Population: 3,070
Median household income: $53,617
School tax: 9 mills
County tax: 2.04 mills
Municipal tax: 3.06 mills
Total tax: 14.1 mills
Common level ratio *: 100 percent
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,410
Median value house: $146,300
Assessed value on median house: $146,300
Tax on median house: $2,063

*Common level ratio compares the market value to the assessed value of a home.

PERRY COUNTY

DUNCANNON

Population: 1,522
Median household income: $41,932
School tax: 12.2 mills
County tax: 3.31 mills
Municipal tax: 3.1 mills
Total tax: 18.61 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,861
Median value house: $102,100
Assessed value on median house: $102,100
Tax on median house: $1,900

MARYSVILLE

Population: 2,534
Median household income: $45,754
School tax: 12.2 mills
County tax: 3.3 mills
Municipal tax: 2 mills
Total tax: 17.5 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,750
Median value house: $121,300
Assessed value on median house: $121,300
Tax on median house: $2,123

NEW BUFFALO

Population: 129
Median household income: $41,250
School tax: 12.2 mills
County tax: 3.31 mills
Municipal tax: 1.3 mills
Total tax: 16.81 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,681
Median value house: $126,800
Assessed value on median house: $126,800
Tax on median house: $2,132

PENN TOWNSHIP

Population: 3,225
Median household income: $49,804
School tax: 12.2 mills
County tax: 3.31 mills
Municipal tax: .57 mills
Total tax: 16.08 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,608
Median value house: $129,200
Assessed value on median house: $129,200
Tax on median house: $2,078

RYE TOWNSHIP

Population: 2,364
Median household income: $71,801
School tax: 12.2 mills
County tax: 3.31 mills
Municipal tax: .9 mills
Total tax: 16.41 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,641
Median value house: $166,200
Assessed value on median house: $166,200
Tax on median house: $2,727

WATTS TOWNSHIP

Population: 1,311
Median household income: $53,235
School tax: 12.2 mills
County tax: 3.31 mills
Fire tax: .22
Municipal tax: .43 mills
Total tax: 16.16 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,616
Median value house: $143,500
Assessed value on median house: $143,500
Tax on median house: $2,319

WHEATFIELD TOWNSHIP

Population: 3,334
Median household income: $62,333
School tax: 12.2 mills
County tax: 3.3 mills
Municipal tax: .2 mills
Total tax: 15.7 mills
Common level ratio: 100 percent*
Assessed value of $100,000 house: $100,000
Tax on $100,000 market value house: $1,570
Median value house: $142,000
Assessed value on median house: $142,000
Tax on median house: $2,229

*Common level ratio compares the market value to the assessed value of a home

YORK COUNTY

CARROLL TOWNSHIP

Population: 5,939
Median household income: $70,133
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: 1.62 mills
Total tax: 20.38 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,712
Median value house: $225,600
Assessed value on median house: $189,504
Tax on median house: $3,862

DILLSBURG

Population: 2,563
Median household income: $51,045
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: 2.37 mills
Total tax: 21.13 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,775
Median value house: $148,500
Assessed value on median house: $124,740
Tax on median house: $2,636

FAIRVIEW TOWNSHIP

Population: 16,668
Median household income: $71,472
School tax: 11.78 mills
County tax: 4.15 mills
Municipal tax: 1.6 mills
Total tax: 17.53 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,473
Median value house: $187,600
Assessed value on median house: $157,584
Tax on median house: $2,762

FRANKLINTOWN

Population: 489
Median household income: $40,938
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: 1.88 mills
Total tax: 20.64 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,734
Median value house: $134,100
Assessed value on median house: $112,644
Tax on median house: $2,325

FRANKLIN TOWNSHIP

Population: 4,678
Median household income: $60,850
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: .2 mills
Total tax: 18.96 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,593
Median value house: $174,800
Assessed value on median house: $146,832
Tax on median house: $2,784

GOLDSBORO

Population: 952
Median household income: $65,865
School tax: 11.78 mills
County tax: 4.15 mills
Municipal tax: .75 mills
Total tax: 16.68 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,401
Median value house: $143,800
Assessed value on median house: $120,792
Tax on median house: $2,015

LEWISBERRY

Population: 362
Median household income: $66,250
School tax: 11.78 mills
County tax: 4.15 mills
Municipal tax: 1.3 mills
Total tax: 17.23 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,447
Median value house: $154,200
Assessed value on median house: $129,528
Tax on median house: $2,232

MONAGHAN TOWNSHIP

Population: 2,630
Median household income: $73,977
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: .9 mills
Total tax: 19.66 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,651
Median value house: $210,300
Assessed value on median house: $176,652
Tax on median house: $3,473

NEWBERRY TOWNSHIP — DISTRICT 1

Population (District 1 and 2): 15,285
Median household income (District 1 and 2): $56,047
School tax: 11.78 mills
County tax: 4.15 mills
Municipal tax: 1.79 mills
Total tax: 17.72 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,448
Median value house (District 1 and 2): $127,500
Assessed value on median house: $107,100
Tax on median house: $1,898

NEWBERRY TOWNSHIP — DISTRICT 2

Population (see District 1): 15,285
Median household income (see District 1): $56,047
School tax: 23.72 mills
County tax: 4.15 mills
Municipal tax: 1.79 mills
Total tax: 29.66 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $2,491
Median value house (see District 1): $127,500
Assessed value on median house: $107,100
Tax on median house: $3,177

WARRINGTON TOWNSHIP

Population: 4,773
Median household income: $58,958
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: .21 mills
Total tax: 18.97 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,593
Median value house: $177,900
Assessed value on median house: $149,436
Tax on median house: $2,835

WELLSVILLE

Population: 221
Median household income: $51,250
School tax: 14.61 mills
County tax: 4.15 mills
Municipal tax: .42 mills
Total tax: 19.18 mills
Common level ratio *: 84 percent
Assessed value of $100,000 house: $84,000
Tax on $100,000 market value house: $1,611
Median value house: $153,800
Assessed value on median house: $129,192
Tax on median house: $2,478

*Common level ratio compares the market value to the assessed value of a home.

LEBANON COUNTY

ANNVILLE TOWNSHIP

Population: 4,767
Median household income: $51,250
School tax: 102.76 mills
County tax: 20 mills
Municipal tax: 20 mills
Total tax: 142.76 mills
Common level ratio: 15.8 percent*
Assessed value of $100,000 house: $15,800
Tax on $100,000 market value house: $2,251
Median value house: $131,400
Assessed value on median house: $20,761
Tax on median house: $2,958

EAST HANOVER TOWNSHIP

Population: 2,801
Median household income: $58,840
School tax: 86.85 mills
County tax: 20 mills
Municipal tax: 1.5 mills
Total tax: 108.35 mills
Common level ratio: 15.8 percent *
Assessed value of $100,000 house: $15,800
Tax on $100,000 market value house: $1,712
Median value house: $170,000
Assessed value on median house: $26,860
Tax on median house: $2,910

NORTH ANNVILLE TOWNSHIP

Population: 2,381
Median household income: $65,958
School tax: 102.76 mills
County tax: 20 mills
Municipal tax: none
Total tax: 122.76 mills
Common level ratio: 15.8 percent *
Assessed value of $100,000 house: $15,800
Tax on $100,000 market value house: $1,940
Median value house: $157,700
Assessed value on median house: $24,917
Tax on median house: $3,059

NORTH LONDONDERRY TOWNSHIP

Population: 8,068
Median household income: $65,000
School tax: 98.75 mills
County tax: 20 mills
Municipal tax: 10 mills
Total tax: 128.75 mills
Common level ratio: 15.8 percent *
Assessed value of $100,000 house: $15,800
Tax on $100,000 market value house: $2,034
Median value house: $192,300
Assessed value on median house: $30,383
Tax on median house: $3,912

PALMYRA

Population: 7,320
Median household income: $48,750
School tax: 98.75 mills
County tax: 20 mills
Municipal tax: 17.50 mills (includes .5 library)
Total tax: 136.25 mills
Common level ratio: 15.8 percent*
Assessed value of $100,000 house: $15,800
Tax on $100,000 market value house: $2,153
Median value house: $140,000
Assessed value on median house: $22,120
Tax on median house: $3,014

SOUTH ANNVILLE TOWNSHIP

Population: 2,850
Median household income: $63,289
School tax: 102.76 mills
County tax: 20 mills
Municipal tax: 6 mills
Total tax: 128.76 mills
Common level ratio: 15.8 percent*
Assessed value of $100,000 house: $15,800
Tax on a $100,000 house: $2,034
Median value house: $166,900
Assessed value on median house: $26,370
Tax on median house: $3,395

SOUTH LONDONDERRY TOWNSHIP

Population: 6,991
Median household income: $78,105
School tax: 98.75 mills
County tax: 20 mills
Municipal tax: 10.5 mills (include. 1.5 fire)
Total tax: 129.25 mills
Common level ratio: 15.8 percent*
Assessed value of $100,000 house: $15,800
Tax on a $100,000 house: $2,042
Median value house: $209,000
Assessed value on median house: $33,022
Tax on median house: $4,268

*Common level ratio compares the market value to the assessed value of a home

DAUPHIN COUNTY

CONEWAGO TOWNSHIP

Population: 2,997
Median household income: $84,844
School tax: 18.42 mills
County tax: 6.88 mills
Municipal tax: none
Library tax: .35 mills
Total tax: 25.65 mills
Common level ratio: * 73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,885
Median value house: $228,700
Assessed value of median house: $168,094
Tax on median house: $4,311

DERRY TOWNSHIP

Population: 24,679
Median household income: $60,635
School tax: 16.99 mills
County tax: 6.88 mills
Municipal tax: 1.1 mills
Library tax: None
Total tax: 24.97 mills
Common level ratio: * 73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,835
Median value house: $226,500
Assessed value on median house: $166,477
Tax on median house: $4,157

EAST HANOVER TOWNSHIP

Population: 5,718
Median household income: $58,427
School tax: 18.42 mills
County tax: 6.88 mills
Municipal tax: .36 mills
Library tax: .35 mills
Total tax: 26.01 mills
Common level ratio: * 73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,912
Median value house: $161,300
Assessed value on median house: $118,555
Tax on median house: $3,084

HARRISBURG

Population: 49,528
Median household income: $31,676
School tax: 26.31 mills
County tax: 6.88 mills
Municipal tax: 4.78 buildings, 28.6 land
Library tax: .35 mills
Total tax: 37.97 mills on buildings, 61.79 mills on land
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $57,733 buildings, $15,767 land
Tax on $100,000 market value house: $3,194
Median value house: $78,400
Assessed value on median house: $45,318 buildings, $12,377 land
Tax on median house: $2,506

HIGHSPIRE

Population: 2,399
Median household income: $37,038
School tax: 24.84 mills
County tax: 6.88 mills
Municipal tax: 14.3 mills
Library tax: .35 mills
Total tax: 46.37 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $3,408
Median value house: $88,400
Assessed value on median house: $64,974
Tax on median house: $3,013

HUMMELSTOWN

Population: 4,538
Median household income: $55,888
School tax: 18.42 mills
County tax: 6.88 mills
Municipal tax: 2 mills
Library tax: .35 mills
Total tax: 27.65 mills
Common level ratio: * 73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,032
Median value house: $150,500
Assessed value on median house: $110,617
Tax on median house: $3,059

LONDONDERRY TOWNSHIP

Population: 5,235
Median household income: $66,742
School tax: 18.42 mills
County tax: 6.88 mills
Municipal tax: 3 mills
Library tax: .35 mills
Total tax: 28.65 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,106
Median value house: $131,800
Assessed value on median house: $96,873
Tax on median house: $2,775

LOWER PAXTON TOWNSHIP

Population: 47,360
Median household income: $62,855
School tax: 13.86 mills
County tax: 6.88 mills
Municipal tax: .96 mills
Library tax: .35 mills
Total tax: 22.05 mills
Common level ratio: * 73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,620
Median value house: $166,900
Assessed value on median house: $122,671
Tax on median house: $2,705

LOWER SWATARA TOWNSHIP

Population: 8,268
Median household income: $60,553
School tax: 20.99 mills
County tax: 6.88 mills
Municipal tax: 2.5 mills
Library tax: .35 mills
Total tax: 30.72 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,258
Median value house: $137,400
Assessed value on median house: $100,989
Tax on median house: $3,102

MIDDLETOWN

Population: 8,901
Median household income: $47,522
School tax: 20.99
County tax: 6.88
Municipal tax: 5.63
Total tax: 33.5 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,462
Median value house: $110,600
Assessed value on median house: $81,291
Tax on median house: $2,723

PAXTANG

Population: 1,561
Median household income: $56,250
School tax: 13.86 mills
County tax: 6.88 mills
Municipal tax: 10.73 mills
Library tax: .35 mills
Total tax: 31.82 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,339
Median value house: $136,900
Assessed value on median house: $100,621
Tax on median house: $3,202

PENBROOK

Population: 3,008
Median household income: $36,545
School tax: 13.86 mills
County tax: 6.88 mills
Municipal tax: 9.2 mills
Library tax: .35 mills
Total tax: 30.29 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,226
Median value house: $99,900
Assessed value on median house: $73,426
Tax on median house: $2,224

ROYALTON

Population: 967
Median household income: $46,719
School tax: 20.99 mills
County tax: 6.88 mills
Municipal tax: 3 mills
Library tax: .35 mills
Total tax: 31.22 mills
Common level ratio: *$73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $2,295
Median value house: $97,900
Assessed value on median house: $71,956
Tax on median house: $2,246

SOUTH HANOVER TOWNSHIP

Population: 6,248
Median household income: $87,050
School tax: 18.42 mills
County tax: 6.88 mills
Municipal tax: .46 mills
Library tax: .35 mills
Total tax: 26.11 mills
Common level ratio: *73.5
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,919
Median value house: $222,700
Assessed value on median house: $163,684
Tax on median house: $4,274

STEELTON

Population: 5,990
Median household income: $35,048
School tax: 24.84 mills
County tax: 6.88 mills
Municipal tax: 14 mills
Library tax: .35 mills
Total tax: 46.07 mills
Common level ratio: * 73.5
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $3,386
Median value house: $78,600
Assessed value on median house: $57,771
Tax on median house: $2,569

SUSQUEHANNA TOWNSHIP

Population: 24,036
Median household income: $58,965
School tax: 16.43 mills
County tax: 6.88 mills
Municipal tax: 2.6 mills
Library tax: .35 mills
Total tax: 26.26 mills
Common level ratio: *$73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,930
Median value house: $155,900
Assessed value on median house: 114,586
Tax on median house: $3,009

SWATARA TOWNSHIP

Population: 23,362
Median household income: $54,110
School tax: 13.86 mills
County tax: 6.88 mills
Municipal tax: 2.32 mills
Library tax: .35 mills
Total tax: 23.41 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,720
Median value house: $145,100
Assessed value on median house: $106,648
Tax on median house: $2,497

WEST HANOVER TOWNSHIP

Population: 9,343
Median household income: $68,085
School tax: 13.86 mills
County tax: 6.88 mills
Municipal tax: 1.19 mills
Library tax .35 mills
Total tax: 22.28 mills
Common level ratio: *73.5 percent
Assessed value of $100,000 house: $73,500
Tax on $100,000 market value house: $1,638
Median value house: $175,600
Assessed value on median house: $129,066
Tax on median house: $2,875

*Common level ratio compares the market value to the assessed value of a home.

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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.

What Happens If You Wait to Buy Your Harrisburg PA Home?

Tue, 03 Jan 2012 03:00:00 GMT

Below is a visual showing why “waiting for prices to drop” doesn’t make sense in this market....

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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.

Harrisburg PA Mortgage Market Recap - Dec 20 2011

Tue, 20 Dec 2011 03:00:00 GMT

Can we trust the data? Everyone is asking that question after the National Association of Realtors said it would revise its home sales data for the past four years. The revised data are scheduled for release this coming Wednesday with the NAR's monthly report on home sales for November.

The NAR cited several reasons for revising sales. The most notable reason was that the NAR believed it was overcompensating for sales that did not occur on the regional and local real estate listing services from which the NAR extracted data.

The bottom line is that sales and unsold inventory will be revised downward, but monthly percentage changes in sales volumes, months of outstanding inventory, and median home prices will remain unchanged.

Some media outlets have attacked the NAR's revisions from an alarmist or snarky angle. Neither is deserved; the NAR is simply admitting that it needs to be more accurate. What the NAR revisions really highlight is the difficulty in producing national numbers that are meaningful to any local market. If you think about it, is a median national sales price of $167,000 meaningful to a tony suburban enclave in Alexandria , Virginia or to an overbuilt Las Vegas ? We would argue that it isn't.

That said, we will still post and examine the national numbers, because they interest many market participants. The inputs can also be revealing. For example, Corelogic reported that total home prices were down 3.9 percent in October from a year ago, but prices were down by just 0.5 percent when distressed sales are excluded. This tells us that we have two distinct markets at work, which most of us knew anyway, but which much of the lay public doesn't know.

The national numbers can also set the mood and expectations of any one buyer or borrower. It's in our best interest then, and it's also truthful, to highlight the positives in a market dominated by negativity. To that end, we'll mention that Swiss financial services firm Credit Suisse told its clients last week that “ U.S. homes now appear fairly valued compared to median family income.” Credit Suisse's analysis also shows that shadow inventory and mortgage defaults will improve noticeably in 2012.

Mortgage rates, contrary to our expectations, will also continue to improve. Most financing options moved lower this past week, with the 30-year fixed-rate loan hitting a new low in many markets (though it's worth noting that a new low can be hit with only a couple basis-points move). Our outlook for an improving stock market, which would draw funds out of the bond market, is being negated by Europe's inability to deal with the near-bankruptcy of a few of its Mediterranean countries.

While the sense of urgency to refinance or purchase has been reduced, we still think it's best to lock and take advantage of today's rates. The fact is that most borrowers are less frustrated being locked and wishing they were floating than the reverse.

Courtesy of Jessica Regan.

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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.

A Prediction With No Guarantee

Tue, 20 Dec 2011 03:00:00 GMT

Former Yankees catcher Yogi Berra is as well known for his malapropisms as for his catching ability. On the former, Berra once famously quipped, “It's tough to make predictions, especially about the future.” With that thought in mind, we'll take a shot at predicting the mortgage-rate market for early 2012.

The reflexive response is to say that rates have to remain low. After all, the Federal Reserve has openly stated that it will continue to reinvest short-term securities into long-term securities. The Fed also said that it would keep reinvesting in mortgage-backed securities. Both activities will surely raise the pressure for mortgage rates to remain low.

Now, couple the Fed's resolve to hold long-term rates low with Europe 's ongoing travails and our own sluggish economy and it would appear mortgage rates would have to remain near today's levels at least through the first quarter of 2012.

With all that said, don't overlook or underestimate the “unseen” – the unexpected event that moves markets. Everything seen favors low rates, and few pundits are expecting higher rates. Because of that fact, we think the inevitable “unseen” favors a spike up in rates over a spike down.

Courtesy of Jessica Regan.

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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.

Harrisburg PA Mortgage Market Recap - Dec 13 2011

Tue, 13 Dec 2011 03:00:00 GMT

We tend to view most situations from an optimist's perspective, because optimists are more likely to see solutions that pessimists overlook; therefore, optimists tend to be better problem solvers.

Optimism, we have found, is also usually rewarded. The housing recovery has taken longer than most of us would like, but the market is recovering, and the recovery will likely gain pace as we progress through 2012.

Mortgage delinquencies are one area of continued progress. TransUnion forecasts delinquencies of 60 days or more will peak at 6 percent of all mortgages during the first quarter of 2012, and then fall to 5 percent by year's end. This is actually a continuation of a longer-term trend that has been overlooked: delinquencies this year are expected to fall 7 percent, which follows a 7 percent decline in 2010.

The trend in the National Association of Home Builders/First American Improving Markets Index is also cause for optimism. According to the index, the number of improving housing markets expanded for a fourth-consecutive month, rising 37 percent to 41 in December from 30 in November. The index states that the expansion in both number and geographic diversity of markets is proof that markets continue to grow more heterogeneous; that is, more dependent on local factors than national ones. This is a point we've been making for the past six months.

The news on pricing was less upbeat. CoreLogic reports that house prices dipped nationally month-over-month in October. Year-over-year, prices have declined 3.9 percent, but only 0.5 percent when distressed properties are removed from the equation.

A recent report by Barclays Capital should help ease pricing concerns. According to Barclays, the housing market will be buoyed by improving job growth and by the fact that prices for non-distressed properties are stabilizing without government support. On price stabilization, Barclays housing analyst Stephen Kim writes, “[W]e are amazed at how little attention it [the recovery in non-distressed homes] has been getting from the media and the street.

”We, on the other hand, are less amazed. We've been hammering the point on stabilizing prices for months, but we also know that bad news always sells better than good news.Speaking of good news, mortgage rates continue to hold steady and near multi-decade lows. We've noticed that the yield on 10-year U.S. Treasury notes has trended lower most of this past week, which has been something of a surprise, given that the economic news, for the most part, has been positive.

Mortgage rates have been holding steady for the past month or so, but we think upward pressure is steadily building – mostly due to an improving economy and job growth (and for a reason we'll explicate below).

Courtesy of Jessica Regan.

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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.

HARP 2.0 and Supply and Demand

Tue, 13 Dec 2011 03:00:00 GMT

A few weeks ago, we wrote about changes in the Home Affordable Refinance Program, dubbed HARP 2.0. This latest incarnation of HARP will impact the supply-and-demand dynamics in the mortgage market, namely due to the removal of the 125-percent loan-to-value cap.

More borrowers will qualify for mortgage loans; that obviously means there will be more demand for mortgage loans. What's more, demand could increase sooner rather than later, particularly if borrowers who don't need HARP, but want to exploit today's low rates to avoid the possibility of a delay, ratchet up demand.

To be sure, HARP 2.0 will be a good deal for many mortgagors who have been unable to refinance because of diminished home equity. Many of these mortgagors will benefit, even if mortgages rates were to rise a full-percentage point or more.

Now, we're not forecasting a percentage point rise in rates when HARP 2.0 kicks into gear, but more demand does tend to raise costs, including the cost of mortgage financing. This is something borrowers who don't need HARP but who could take advantage of today's rates should think about, because many of them won't benefit if mortgage rates move significantly higher.

Courtesy of Jessica Regan.

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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.

A Confluence of Positive Factors

Tue, 06 Dec 2011 03:00:00 GMT

The Wall Street Journal recently reported that home affordability is at its highest level in years; this degree of affordability becomes more apparent when compared to rent prices, which continue to rise across the country.

Meanwhile, ADP 's National Employment Report showed another month of strong job growth, with the private-sector adding 206,000 new jobs for November. Accelerating job growth usually portends a strong (at least stronger) economy.

Accelerating job growth combined with a historically high affordability index suggests to us that this is the near-perfect time to buy or refinance a home, because we doubt that affordability will remain this high at the end of 2012.

The fact is that bloated inventory levels are falling, and falling inventory in many markets has spurred bidding wars. As the economy continues to improve, inventory will become less bloated and prices and financing costs will rise. It's always worth remembering that the best time to buy is when enough clouds remain to permeate the market with at least some pessimism, because the best deals are only found when the future is still clouded by uncertainty. When the clouds clear, so will the high affordability index.

Today, we have low home prices, low mortgage rates, and more job growth. In our opinion, this is the perfect time to buy or refinance, because continued job growth, a rising stock market, and a growing economy means higher home prices and higher lending rates in the future.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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.