As we begin the first week of March, we are seeing the first signs of spring; the sun for more than a few minutes a day, the robins are out and we are now waiting for the next snow storm or a high wind warning. The same can be said of the local real estate market. Although the number of homes sold in February of 2010 is down by 15%, the average sales price comparing 2009 versus 2010 is up 11%. The increase in the sales price is partly due to the depressed level of last year due to the extreme uncertainty that was caused by the meltdown in the financial markets in late 2008 and naturally continuing into 2009. The average sales price in the region as reported by the Central Penn Multi List was $167,335 and in 2010 it is $185,483, and this average sales price was relatively consistent throughout the later months of 2009. In my opinion, the sales numbers would have been stronger if it had not been for the two snow storms that slowed down not only auto travel but foot travel, ie walking in homes that were for sale. But in the last two weeks, I have seen an increase in at least more inquiries across the board up to the $350,000 asking price, with the higher priced homes still seeing low activity.

What is in store as we go into the spring? We will still experience a slow rebounding market, but in light of that there are some promising signs just as spring arrives. We still have extremely attractive interest rates on 30 year mortgages, right at 5% and the home buyer tax credit is still available for contracts written before April 30 and settling before June 30 of this year. And there is an abundance of homes for sale, in excess of 4300 across all price ranges. AND there is plenty of mortgage money available and many, many lenders willing to lend to qualified borrowers. I am constantly asked whether the tax credit will be extended and my answer is I do not think so, but it could depend on the prevailing winds in Washington, DC. I would not want to rely on a definite maybe at best. Both buyers and sellers have great opportunities in the current market because as we go through 2010, one thing is almost certain. Mortgage rates will increase, which may place a lid on the activity, although it may be modest.

True, the current real estate market is not like it was three years ago and probably will never return to those levels. But this market is much more stable than it is in many parts of the US and I do not anticipate that to change. So my advice is naturally embrace the coming of spring and possibly a slightly improving real estate market in the Central Pennsylvania area.

As a reminder the First Time Home Buyer Credit is up to $8000 and the first time home buyer is defined as someone that has not owned a home in the last three years. The $6500 tax credit is aimed at people who have lived in a home for at least five consecutive out of the last eight years. There are income considerations for both credits but many potential buyers will be able to qualify for most, if not all of the credit. So if you are considering a home purchase and you combine the tax credit with the very attractive low interest rates, why wait act now before the credits are history.

As we enter the second week of February 2010, there seems to be one subject besides real estate and that is global warming; and that debate whether there is global warming continues incessantly. Who is right or who is wrong on this issue will be determined in the future. With respect to real estate, I think that I am more right than wrong with my opinions in the past and what I see going forward, at least in the Central Pennsylvania marketplace. Comparing January 2009 with January 2010, the number of sales have decreases by 14%, and I know that does not look like a rebounding market that I have characterized in previous letters. But I will say that we experienced a similar result when comparing January 2008 and 2009, and we still were down for the year 2009, though not anywhere near the January numbers and I still anticipate that 2010 will be a positive year, although only slightly. And the January average sales price comparison is much improved over 2009 albeit down 7%.

Why didn’t we see more of an improvement or a continuation of the progress in the latter part of 2009? Three factors: 1) being that the Home Buyer Tax Credit extension didn’t occur until mid November, 2): the holiday season was upon us and in many instances buyers have traditionally slowed down their buying habits during December and January; 3) the weather, need I say anything more after 30+ inches of snow within the last five days!!

Moving forward, what is the most likely scenario that I anticipate? We will see a slow improvement in the number of home sales in the area and a slight increase in the average sales price as we go through 2010. Part of the increase will be due to the tax credit that presently has a date of April 30, 2010, in which buyers can qualify for the tax credit and with a closing date of June 30, 2010. I have been asked about an extension beyond April of this year and my response is that anything is possible in Washington, DC, but it is highly unlikely. Improvement will also come from buyers who do not want to rent any longer, sellers that want to either downsize or need a larger home and those who want to take advantage of the low mortgage interest rate that we continue to experience and we all should be aware that the low interest rate environment cannot continue forever. As I said in one of my recent posts, a 1% difference on a mortgage rate can increase your mortgage payment by almost $90.00 a month on a mortgage of $150,000. Yes, things will improve on a slow and steady pace, and when we see an overall increase in the economic climate the activity will improve even more, but do not anticipate a return to three or four years ago with substantial price appreciation because it is not going to happen.

It is my intent to give you the best of what I see in the market in order to assist you in making a real estate purchase; and please remember each sale is different even though there may be two homes that are exactly alike. Such factors as condition and buyer or seller motivation are two that come to mind. So if you are considering a purchase or a sale please contact me at Don@DonRoth.com or visit my web site www.DonRoth.com and view the search listings tab. Hope that we can say that the past week has been a global warming anomaly and we will see plenty of sunshine for a while.

Don Roth begins term as PAR president
Friday, January 29, 2010
By Kim Shindle

From left: Barb Roth, Don Roth and Jim Helsel
(Photo credit: Stuart Leask)

Donald D. Roth was installed as the 2010 president of PAR at the annual Inaugural Banquet held Tuesday evening in Harrisburg.

Roth, a REALTOR® from Harrisburg, was sworn into office by NAR Treasurer James L. Helsel Jr., also a PAR past president.

“I’m humbled, honored and excited to have this special opportunity to lead PAR in this challenging time. I will make our association a better one in the coming year,” Roth said.

Roth said association members will face many challenges in 2010 including regulatory, legislative, business and consumer expectations. He said the association has many ongoing projects it will focus on in the coming year including the Community Reinvestment Project (CORE), the statewide housing trust fund, educational requirements and cultural diversity outreach.

“The times have changed and we will continue to change to meet the changes in our industry,” he added.

Pennsylvania Rep. Sue Helm (R-Dauphin), Glen Grell (R-Cumberland) and Ron Marsico (R-Dauphin) made a special presentation to Roth on behalf of the House of Representatives during the evening’s festivities.

Outgoing PAR President Gregory Herb thanked members for the opportunity to serve as president. He reminded them, “Never has your PAR membership been more valuable than it is today.”

About Kim:
Kim Shindle is the Communications Specialist at the Pennsylvania Association of REALTORS®.

Don Roth to serve as PAR president
Tuesday, January 12, 2010
By Kim Shindle

“Changing with the Times” will be the mission of Donald D. Roth as he becomes the 87th president of the PA Association of REALTORS®. His theme will direct the association’s focus to the new issues facing REALTORS®.

Don Roth, PAR Presudent

“Our industry is going through an evolution. We’ve seen boom times and now we’re going through a substantial correction,” Roth said. “PAR has to be responsive to its members. We’re a source of information and we want to continue to provide tools for our members to better serve their clients.”

Roth spent 20 years in the financial industry before becoming a REALTOR® nearly 20 years ago. A REALTOR® with Prudential Homesale Services Groups, he primarily works in the residential market in the greater Harrisburg area.

While Pennsylvania has weathered the difficult economic climate and remained fairly stable, the market has seen a slight increase toward the end of 2009, Roth said. “We’ve seen some improvement in the market since September. More homes are being sold, although most of them are in the lower price range,” he added.

Roth said PAR task forces will continue to work on issues like climate change, educational requirements and appraisal management companies. In addition, a new task force will be appointed to help outline the goals of the new Community Reinvestment Project (CORE), a new PAR cooperative program.

Legislative issues that could affect the real estate industry in the upcoming year will continue to be assessed, Roth said. “Issues like the real estate transfer tax (RTT), reassessments, zoning, point-of-sale requirements all affect how we do business. We want to be at the table to make recommendations to the legislative bodies,” he added.

Roth will be sworn in on Tuesday, Jan. 26 at PAR’s Winter Business Meetings in Harrisburg.

About Kim:
Kim Shindle is the Communications Specialist at the Pennsylvania Association of REALTORS®.

There are two eligibility categories designated by the Tax Credit Law:

1. First Time Home Buyers. Defined as a buyer that has not owned a home for the past three years and the credit is up to $8000 or 10% of the purchase price of the home. The income restrictions are $125,000 for a single buyer and $225,000 for a couple purchasing the home. One of the more attractive conditions of the law is that the credit is truly a credit with no repayment provisions as long as you own the home for three years. If you sell prior to the anniversary, the total credit amount must be repaid.
2. Current Home Owners who may want to purchase a home. The credit is $6500, and the home being purchased must be the buyers’ permanent residence. If a buyer wants to continue to own the home they are currently residing in, that is allowed, but again the home being purchased must be the new residence and be occupied by the buyer. One other condition in this category is that the buyer must have lived in their previous residence for five consecutive years of the last eight years. The other conditions that pertain to the First Time Home Buyers are similar.

Why is this credit so important? One of the reasons Congress extended the credit is to stimulate the housing market in the beginning of 2010. Also, with prices of homes in many areas of the country at or below previous levels it is anticipated that buyers can purchase a home at an attractive price and possibly give current homeowners the opportunity to do the same. And with mortgage interest rates still at an attractive level, possibly provide more purchasing power to a buyer.

This bill passed by Congress is the third version of the Home Buyer Tax Credit and from everything that I have seen or read Congress is not likely at this time to provide any further extensions in the future. Naturally, with any specific tax questions, it is highly recommended that you talk to a tax professional. And if you have any questions concerning available real estate for sale in the Greater Harrisburg area, please contact me at Don@DonRoth.com.

Happy New Year to all. As I report on the real estate market in the region, I think most of us know that to say that it was a challenging year would be an understatement. In many of the areas throughout the U.S., the real estate market continues to be under siege. In Pennsylvania and especially the Greater Harrisburg area, we have fared much better, and there are signs that stabilization and improvements in the market are becoming a reality. When comparing 2009 to 2008, we saw the number of homes sold decrease by 44 sales, which is a very minor percentage in the real estate market. Yes, the average sales price of homes declined by approximately 5% when compared to 2008, but the month to month decline in sales prices was most significant in the earlier months of 2009.

Why do I anticipate an improvement for 2010? Well, one reason is that interest rates are still very attractive, although there is every indication that mortgage interest rates will climb higher as we go through 2010. The impact on mortgage payments is evidenced below for a $150,000 mortgage amortized over 30 years.

Pretty substantial increase in the cost of a mortgage, isn’t it? We can say it is only a 1% increase in rates, but is actually a 20% increase in the cost of your housing payment. Something to keep in mind is that a rate increase has the effect of reducing the price of a home a buyer could afford. But there is still more positive news for the real estate market. First of all, the first time home buyers credit of up to $8000 is still available for contracts written by April 30, 2010 and closed by June 30, 2010. Also, the other home buyer credit of $6500 is also available under the same time guidelines (more about that in a separate article). Second, there is plenty of quality, well priced homes available for sale, and in my opinion, the asking prices for homes to a great extent is more in line with the market expectations at this time. Maybe I see the glass half full, but I do expect more positive real estate news being disseminated in the coming months; at least in our area.

As we can see, the average sales price in some areas differ from year to year. Although I did not drill through the numbers, my opinion is that there have not been as many expensive homes that have sold. With the availability of the tax credit in 2009, many buyers took advantage of that, and in many cases, we had a higher number of those homes selling in 2009. Also, we did not escape the foreclosure and short sale experience in the area, but the impact was substantially smaller than in other areas of the country. No one likes to see those types of transaction, but unfortunately that is the world we live in right now and those transactions will have some impact on our market going forward.

Lastly, VA and FHA loans are having a bigger impact on the market, partially due to the credit crisis and also because of the changing lending environment we are experiencing. The percentage of those loans went from 22% in 2008 to 36% in 2009. These are still quality loan products and they do not have the negative connotation from previous years. If you would like more specific information on any area, please contact me at 717-579-2879 or email at Don@DonRoth.com. And if you would like to search available homes for sale please go to www.DonRoth.com and click on the search button. Again, wishing you all a Happy and Prosperous New Year.

RISMEDIA, November 5, 2009— After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

Hello to fall. I’m looking out the window as I write this report after just having come in from the outside and the feel of fall is in the air. I’m sure there will be many of non-fall like temperatures in the coming weeks. We hope!

I am pleased to report the real estate activity for September 2009 compared to September 2008 and the anticipated improvement that I have been speaking about in the past few months is coming to fruition. In addition to the improvement in the real estate market, I have made, I hope, an improvement of how the results are formatted. I have changed the format from municipality to school district because more and more buyers are looking at school districts rather than the municipality. Hopefully, this will give a better comparison since in many instance the school districts overlap more than one municipality. I hope you will find this change beneficial.

The number of homes sold in September 2009 compared to September 2008 declined by 3%, and the average sales price declined by the same 3%. These numbers are the best year over year numbers that we have seen in the Greater Harrisburg Market in some time, and although the coming months may not totally reflect that trend, I think it is again giving home buyers and sellers a true indication of what we can expect in 2010. The average sales price for the area for September was $187,007, and the days on market increased to 78 days. The number of homes available in all residential categories increased slightly to 4,271 properties.

The trend in the type of financing, FHA and VA mortgages, was 45% of the total transaction compared to 27% in 2008. Much of this is still due to the $8000 First Time Home Buyer Tax Credit, which will expire November 30, 2009; more on that later. But in retrospect, these results are improving and again that trend should continue.

As can be seen in this report, as well as previous reports, the variances in price and days on market can be substantial on a month to month basis, but overall, the numbers are representative and only a comparison by neighborhoods will give you the specifics for areas that a buyer or seller may be looking. If you need specific details on neighborhoods, please contact me at Don@DonRoth.com.

With respect to the continuation of the $8000 First Time Home Buyer Tax Credit beyond November 30, please click on the following link
http://www.donroth.com/Blog/First-Time-Home-Buyers-Tax-Credit-May-Be-Extended

Click Here to View Article

The real estate activity for August does provide some interesting insight to what is occurring. Namely that the average sales price ($188,352) declined by approximately 13% from August 2008; and at first, that appears to indicate we have not reached the bottom. That may be true, but it is my opinion that it has to do more with the first time home buyers tax credit and buyers taking advantage of the credit, which in many transactions impacts the lower priced homes rather than the market falling off the cliff. In many instances, that is good news because the underpinnings of the market needs for the lower priced homes selling before the higher ones occur. So I think the basing process that I have mentioned in previous months is continuing and we will see a stabilized market by the end of this year..

Again with respect to an extension of the tax credit into 2010, it is still a guessing game whether it will remain in tact, be modified or the dollar amount increased. As we all know, there is a great deal of talk in Washington and little action. I hope that changes. If you are still considering using the tax credit, please remember that the sale has to be finalized by November 30, 2009. So, it would be my recommendation that every buyer have a home under contract no later than September 30, 2009 due to changes in some of the financing packages available.

As you can see, there are some substantial variance between 2008 and 2009. My research shows that in a few communities there were some higher priced homes settle that are out of the norm and misrepresented a more stable environment that normally occurs. But a very positive indication is that in approximately 75% of the selected communities have seen a decrease in the days on market when compared to July 2009. And I know of multiple offers on selected homes reappearing and that in, my estimation, is a very good sign. Again, as before, if there are any real estate related questions, please contact me at your convenience at 717-579-2879 or email at Don@DonRoth.com. Also, please check out my web site for probably the most current information on homes that are currently for sale in the area by clicking on “Search Listings”.

The real estate sales activity for the Greater Harrisburg area containing the counties of Cumberland, Dauphin and Perry and segments of York, Lancaster and Lebanon Counties continued to stabilize and appears to be improving for the comparative periods of July 2008 versus July 2009. And although the average sales price for homes in the area declined by approximately 5% for the year over year comparison, there was a 3% increase in the average sales price in July 2009 when compared to June 2009 to an average of $198,409. As we all know, this is the primary selling and buying season for real estate and this has not deviated from previous years. That traditional high activity has been, in my opinion, fueled by buyers finding attractively priced homes, very competitive mortgage rates and the $8000 tax credit being offered by the Federal Government. Also contributing was a substantial increase in buyers using FHA and VA financing options (38% of all transactions in July 2009).

With respect to any extension of the first time homebuyer tax credit into 2010, the simple answer at this time is that there is no answer. There has been talk in Washington about extending or even expanding the credit to all buyers, not just first time buyers, but with all that is on the plate legislatively, including the budget and health care debates, I do not think anyone is going to guarantee the extension at this time.

Below are the average sales prices and days on market (DOM) for select municipalities on the East and West Shores in the Harrisburg area.

You can see that there are wide variances in average sales price and days on market from year to year. There are many explanations for these variances, but when reviewing previous comparative periods, I saw wide swings over a period of time that did not totally impact the overall trends. And, as I have been saying for a few months, that although the sales numbers and average sales price are down year over year, we are seeing a basing process that will lead to higher prices down the road. I cannot tell you when, but we can only be sure after we have hit the bottom and the same can be said of the lower mortgage interest rates. If you have any questions or need any additional information, please contact me at your convenience. And if you are considering a purchase of a home and want to inquire about prices and locations, please go to my web site www.DonRoth.com and click on the search listings button and get current listing information.

• A first time home buyer is one that has not owned a residence within the last three years.
• Primary residences include single family homes, condos and townhomes.
• The $8000 maximum credit is determined by 10% of the purchase price up to $8000. So it is very easy to see that any home purchase over $80,000 would qualify.
• Single and married buyers with incomes of up to $75,000 and $150,000 are eligible for the full credit. After those limits, there are pro-rations up to a certain dollar amount before the eligibility is no longer available.
• None of the $8000 can be used for a down payment but can be used for closing costs to finalize purchase.
• And most importantly, this credit does not have to be repaid.

I have been asked many times by buyers “is the credit going to be extended for 2010?” My answer is I do not know. There are many variables, most political, that will play into any determination whether there is an extension for 2010. But remember, any extension can be changed or modified and could have many unintended consequences for buyers in 2010.

Why is now a good time to consider a purchase? Home prices are beginning to firm somewhat in the Central Pennsylvania market, and by the end of 2009, I think there will be the beginnings of appreciation in the overall market, albeit a small appreciation. And secondly, mortgage interest rates are still extremely attractive, currently in the area of 5.25%, meaning that the principal and interest payment on $100,000 is $552.20 per month.

Finally, if you need any additional information, please contact me at Don@DonRoth.com or if you want an idea of what is available in the market right now, in any price range, please go to my web site and click on the search listings button and you can find the home you have been looking for. Make it a great day.!!

By Eric Veronikis
6/18/2009 3:18 PM

5,700 views

On May 29, 2009 HUD announced improved guidelines to assist first time home buyers for the purchase of a home. Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5% down payment.

There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies, such a PHFA in Pennsylvania, have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment

Who Qualifies?

First-time home buyers, who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000 The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Depending on the purchasers circumstances please check with a local lender in your area and if you are now sure, please contact me at your convenience.

Source: HUD and The National Association of REALTORS®

The real estate market in our area is beginning to experience some improvement when compared to the previous four months of 2009. The average sales price increased by 3% in May compared to April 2009. The comparison of the number of sold homes decreased slightly when compared to May 2008, but the month to month increase in the sales price is a very good indicator going forward and although the days on market had a slight increase from April, the trend appears to be moderating.

As in previous months, the lower priced homes are selling at a quicker pace than the homes in the higher ranges which right now is over $350,000, but some increased activity is occurring. Part of the increase, I’m sure, has been the $8000 federal tax credit that is for first time homebuyers and which now has been modified by HUD to allow buyers to monetize part of this credit and allow the credit to be used to pay for closing costs for the purchase of a home. Combine the credit with still extremely low mortgage interest rates and we can see why there has been sustained activity in what we would consider the first time homebuyer market. And I would anticipate this positive trend to continue in the coming months. Another positive sign is the number of pending but not settled transactions is up about 45% since the end of 2008, giving a good base for future sales to occur in the near future.

Again as last month, the percentage of homes financed by FHA and VA has increased from last year. And as I mentioned in April this trend will continue for a while. For those sellers that have not been involved in this financing, the guidelines are now very similar to conventional financing and as you can see by the percentages, this type of financing has become the norm in today’s environment. And if you have questions about the value of your home or activities in your community, please contact me at your convenience. Just remember all real estate is local and although there has been a correction, we are still in good shape when compared to other communities across the country.

The real estate market continues to tread water in the Central Pennsylvania market, according to the sold numbers for the month of April 2009 when compared to April 2008. The average sales price declined from $189,197 in 2008 to $184,702 in 2009, a decline of 2%. The average days on the market before a home was placed under contract increased by 8 days to 85 days in 2009, but it should be noted that this comparison is returning to the normal comparison that we experienced in the early 2000s. I think the most interesting statistic is that the number of VA and FHA loans as a percentage of closed transaction increased to 39% in April compared to 19% in 2008. This trend will continue to increase for the rest of the year since these financing vehicles are more consistent in comparison to what the conventional no government loans were previously. The rates are comparable to conventional loans and this increase in these types of loans reflects the new reality that we are recognizing in the financing arena. Below are some comparisons of local municipalities in our market.

In some instances, you see a large variance in either the average selling price or days on market and this is looking at a small time frame of 30 days and that can be caused by one or two large sales or by custom homes being entered into the Multi List and showing zero days on the market. If you have any questions about your local municipality, please contact me at your convenience.

One of the most striking changes is the percentage of loans being initiated by FHA and VA. This percentage increased from 35% in 2009 from only 14% in 2008. This is a good indication since both entities have stepped up to the plate when conventional lending sources were not available, and this trend will continue for a while longer.

But there is some very good news in the market today. 30 year conventional first mortgage rates are still near 5% and, at least in the short term, that should be the going rate. Also, lenders are really attempting to assist buyers in this market to find a mortgage program that fits the borrowers’ requirements. And although the above quarterly sales numbers to many look bleak, the number of pending sales has increased by about 20% since the end of 2008. And although we haven’t completely turned the corner, it is my opinion that we are beginning to see that both buyers have a vehicle to purchase a home at very attractive interest rates and sellers are going to experience more potential buyers for their homes going forward this year.

Below is information on selected municipalities in the region and is reflective of only residential properties and does not include land, investment or commercial properties.

Information received from the Central Penn Multi List and deemed to be correct. The information on the sales has been selected from Dauphin, Cumberland and Perry Counties and portions of Lancaster, Lebanon and York Counties.