Real Estate Information Archive

Tight credit is frequent lament. In a Redfin survey , 16% of respondents stated that difficulty in obtaining financing was a challenge in the second quarter of 2014 compared to 8% in the first quarter.

This might be the perception, but the reality is that credit is gradually becoming easier to obtain, and that's been the case for the past two years. The Mortgage Bankers Association Mortgage Credit Availability Index continues to creep higher. In June, the index posted at 115.8 compared to 115.1 in May, which was better than the 113.8 in April. The index was set at 100 in March 2012.

To be sure, the younger crowd still has some difficulty with financing. As we noted a couple weeks ago, high student- loan debt is an issue. Obviously, that drives up the debt-to-income ratio. That aside, the issues aren't materially different for younger people today compared to younger people of previous generations. When starting off in life, most of us lack assets and have to scrimp to get head. That hasn't change.

The good news is housing continues to change for the better for all age groups. Price appreciation is falling back in line with historical norms. The prospect of slower price growth will bring more homes to market; there will be less incentive to hold out for a higher price. This, in turn, will further slow price growth.

The bottom Line: More people will be able to afford a home, and more funding will be available to those who want to buy a home. That's good news for everyone .

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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

Bill Gross Just Bought $60-Million Worth of Bonds: Why That's a Big Deal

The name Bill Gross is meaningless to most Americans. For those in finance, it's different. The name is universally known, because Bill Gross is the preeminent bond investor in the country. Specifically, Gross manages the $270-billion PIMCO Total Return Fund Institutional closed-end fund, which is the largest bond fund in the United States.

Gross' actions attract attention. This past week, he attracted considerable attention when it was revealed he had poured $60 million of his personal wealth into bond funds he manages. This $60 million is on top of the $140 million he already has invested in these funds.

In short, Gross in betting in a big way that low interest rates will remain low for quite a while longer.

When you look at the yield performance on the 10-year U.S. Treasury note over the past six months, it's difficult to disagree with Gross' bet. Yields have actually shown more of an inclination to go lower than higher.

The 10-year Treasury note is a good proxy for mortgage rates, particularly the 30-year fixed-rate loan. If you lack access to immediate mortgage information, a quick glance at the yield on the 10-year note (readily accessible at Yahoo! Finance) will give you a good idea to the direction of rates.

As for the actual 30-year fixed-rate loan, it remains subdued. Bankrate.com had the 30-year loan averaging 4.31% for the past week, a slight increase over the previous week. Freddie Mac had it at 4.15%. Over the past day or so, the rate has actually drifted a little lower.

Last week, we cautioned that another strong jobs report – which we got – would pressure rates to rise. Rates rose, but only by a few basis points. That interest rates remain low in the face of improving job prospects (which is indicative of an improving economy) suggests there is little impetuous for interest rates, in general, and mortgage rates, in particular, to rise.

As for our prediction of 5% on the 30-year fixed-rate loan by the end of the year? Anything can happen, but it's a more distant target than it was at the beginning of the year. That said, we still have nearly six month until Dec. 31. By October, the Federal Reserve is expected to have ceased buying Treasury notes and mortgage-backed securities (MBS). What's more, the Fed will likely cease or cut back reinvesting interest and principal from maturing notes and MBS into more notes and MBS.

Basically, this means that the Fed – a key factor to low mortgage rates for the past six years – will be a much smaller player as we progress through the fourth quarter. What this means to the direction of interest rates is anyone's guess. At least we know what Bill Gross' guess is – rates will remain low. But, of course, that's subject to change.

Information provided by Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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

Existing home sales account for the majority of sales and mortgage-finance activity, but new home sales and construction contribute more to overall economic growth.

Therefore, we were someone disappointed that housing starts eased in May, with starts falling 6.5% month over month to a 1.001 million annualized rate. Single-family starts dropped 5.9% after a 4.6% rise in April. Permits followed a similar pattern, falling 6.4% month over month. This suggests starts could tread water over the next month or two.

That said, we could still see a pick up in starts based on home builder sentiment. The National Association of Home Builders' confidence index rose four points to a seasonally adjusted 49 in June. The future sales component also moved higher, up 3 points, to 59. This is the best reading since January. This is particularly encouraging, because the future matters more than the past.

Topping our wish list, though, is rising purchase mortgage activity. Unfortunately, purchase applications – after posting a couple weeks of gains – decreased 5% in the Mortgage Bankers Associations' latest survey. With institutional buyers (cash buyers) pulling back, we want to see the individual owner-occupied buyer – the buyer likely to take on mortgage – move into the lead. We still haven't seen that. Until we do, we don't expect to see continual improvements in the housing numbers.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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

Mint is a free personal finance tool that brings all your financial accounts together online or on your mobile device, automatically categorizes your transactions, and helps you set budgets so you can achieve your financial goals. 

When money is tight or the economy is iffy, it can be tempting to postpone or even completely skip over home maintenance repairs. Skipping repairs can be risky, because the $200 you save with an inspection or small repair could cost you thousands more if little problems become big ones.

Money spent now could protect you from financial headaches later. Check out these five expensive home repairs that can arise if you ignore regular maintenance:

1. Roof

If your roof shows signs of deterioration, like loose shingles, water damage, separated flashing, or moldy spots, you're better off repairing those areas now, before you're faced with replacing the entire roof.

Potential Savings: Simple fixes such as replacing shingles and re-caulking flashing will cost you time and a few hundred dollars, but neglect them and you may be handed a bill for up to $18,000, according to Remodeling Magazine's Cost vs. Value report. Even worse, if water is seeping through your roof and into your attic, you could be paying up to $50,000.

2. Foundation

Home maintenance experts recommend that you inspect your foundation at least once a year. Look for hairline cracks, widening gaps between your home and the foundation and sinking floors. Also look for cracks around windows and doors, because they can be a signal that your foundation is shifting. Finally, make sure water pools aren't forming around your foundation, because water damage can deteriorate concrete walls and cause serious issues inside your home as well.

Potential Savings: These relatively straightforward fixes can save you up to $10,000 if your entire foundation needs to be replaced. This cost can soar to $30,000 if your basement is affected and if mold remediation due to water damage is required.

3. Termite Removal

Most homeowners' insurance policies don't cover repairs related to termite damage, so it pays to have regular inspections by a termite company. Termites cause damage from the inside out, eating through flooring, insulation and wood, so if you have an active termite infestation, the repair costs could be hefty.

Potential Savings: Most inspections fall into the range of $100-$200, but skip them and you could look at losses of up to several thousands of dollars if you do indeed have termites.

4. Plumbing

Left unresolved, water leaks can lead to problems like mold and a complete plumbing system replacement. Look for water leaks around toilets, under sinks, and from faucets. Replace old washers when you need to, and insulate exposed pipes, which can corrode due to temperature changes. Also, inspect your hot water heater to ensure optimum operation and the absence of mineral deposits in the tank.

Potential Savings: These relatively easy maintenance checks and repairs can save homeowners up to $10,000, or more if the hot water heater needs to be replaced.

5. HVAC System Replacement

Regular heating, ventilation and air conditioning system inspections are key to avoiding major repair costs later. Recommended maintenance includes cleaning filters every few months to avoid inefficient and clogged filters, and inspecting the ducts for good air flow. Watch for signs of wear and tear and address those areas promptly. Also, replace old filters, thermostats and other components that could impact your HVAC system performance.

Potential Savings: Hiring a pro to maintain your HVAC components can cost between $200 to $300, while letting maintenance go can mean you might spend up to $4,000 replacing a furnace blower, compressor, or other high-ticket items.

The Bottom Line

Taking simple maintenance steps now will prevent bigger homeowner expenditures when small jobs morph into more expensive undertakings.  A good rule of thumb is that homeowners should expect to spend 3% to 5% of their home's value each year on maintenance and repairs. Considering that the price to replace costly items like roofs, foundations and plumbing can rise way beyond that number, it pays to do the little stuff while the problem is still little.

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

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

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

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

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

If you’ve procrastinated a little too long on the Mother’s Day gift front, don’t freak out quite yet. You can make her a gift with items in your home. No, seriously, it can be done! As long as you’re willing to get a little crafty and creative, it’s easy to repurpose common items into beautiful, thoughtful gifts for mom.

Here are six last-minute Mother’s Day gift ideas:

1. Homemade Candle

Not just any candle – a teacup candle! We love the idea of reusing beautiful teacups as a warm, sentimental gift. This project looks like it jumped right out of the pages of a Pottery Barn catalogue and it only takes a few minutes to complete. Check out the full step-by-step for detailed instructions.

2. Serving Tray for Breakfast in Bed

Your mom may say she doesn’t need breakfast in bed, but she deserves to be waited on hand and foot on Mother’s Day! This gift is more about the thoughtful act of serving breakfast in bed than the serving tray itself, but making your own tray will definitely earn you some brownie points. All you need is a cookie sheet, adhesive spray and a yard of fabric she’ll love.

3. Wine Charm

There’s no need to scour the department store for a new set of wine glasses. Upgrade the ones your mother already owns by giving her a set of wine charms! Use spare game pieces (we love the look of Scrabble letters) or leftover wine corks for your charms. Simply drill a small hole into each piece and screw an eye-hook into the hole. Tie a little ribbon or string in a loop around the eye-hook, and that’s it!

4. Bath Bombs

This close to Mother’s Day, it’s safe to assume most day spas are probably fully booked. Not to worry! You can still treat your mom to a little luxury of her own with this DIY bath essential. Once tossed into the bathtub, it will set off a fizzy reaction that releases super-relaxing essential oils. Tip: Personalize the gift even more by including her favorite essential oil (we’re partial to floral scents like lavender).

5. Painted Kitchenware 

For the mom that loves to cook, this gift is a cinch.  Add a burst of color to some wooden utensils with a few strokes of a paintbrush! You don’t have to stop there – with a little painters tape you can also personalize wooden bowls, trivets and placemats! Your mom will enjoy cooking in the kitchen just as much as you enjoy eating her delicious home-cooked meals! 

6. Free Coupon Book

If you're not feeling extra crafty this year, you can just hit the printer button! Give your mom the gift of choices with this free, printable Mother's Day gift guide. It contains eight coupons for different household chores that she can pick from (redeemable any time). 

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

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

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

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

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

 Homeownership has hit a 19-year low, according to the Census Bureau. The share of Americans owning a home is down to 64.9%. Meanwhile, the median monthly asking rent has soared to a record high, hitting $766 as of the first quarter of 2014.

Because our bread is buttered by homeownership, it would seem that ownership hitting a 19-year low is reason to lament, especially if we consider that many pundits believe the trend will be sustained. One prominent pundit, Sam Zell, chairman of apartment REIT Equity Residential, believes the homeownership rate will eventually fall to as low as 55%.

We don't quite see it that way.

For one, continually rising rents is good news for housing, especially if the rate of home-price appreciation continues to ease. This would mean that owning a home will make more sense economically to more people.

The simple fact people prefer to own than to rent is also reason to be encouraged. People prefer to live in a neighborhood of owners, because these neighborhoods are usually more stable and better kept. The good news is that if you can satisfy your preference at a comparatively better price, you're more likely to act. We expect to see more people act as the advantages of ownership become more apparent.

The U.S. homeownership rate peaked at 69.2% in June 2004. We don't see a return to that level in the near future, but something in the 65%-to-66% range is entirely reasonable and plausible.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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

Who to Believe on This One?

For the past year, if not more, we've been wishing, hoping, and even cheerleading for an upturn in economic growth. To this day, we have little to show for our emotional investment.

Gross domestic product (GDP) grew at an imperceptible 0.1% rate on an annualized basis for the first-quarter of 2014. The advance fell far short of an already low-bar consensus estimate for 1.0% growth. Acceptable annual growth for a big country like ours is 3% or higher. Unless the economy picks up steam soon, we're unlikely to see 3% in 2014.

Interestingly, the Federal Reserve's take on the economy doesn't quite jibe with the Bureau of Economic Analysis. (The BEA calculates GDP.) Fed officials see economic activity picking up, with employment improving and consumer spending gaining pace. The Fed is sufficiently convinced the economy is on the right track that it sees no reason to back off tapering. It will continue to reduce its monthly purchases of Treasury notes and bonds and mortgage-backed securities (MBS).

Timing might account for the difference in opinion: The Fed is focused more on the latest economic data, while the BEA parses data all the way back to January. That said, the more contemporary data aren't terribly encouraging, particularly on housing investment.

Many economists focus on consumer spending when estimating economic growth, but investment is just as important. Investment sets the stage for future consumption. Residential investment matters, because it has a rippling effect on the economy. It doesn't take much imagination to see the different materials and services required to build, sell, maintain, and furnish a home.

Unfortunately, residential investment contracted during the first quarter, which marked a second-consecutive quarter of investment contraction. Because housing is such a large economic contributor, residential investment will need to turn positive for the economy to meaningfully grow.

Mortgage activity, sluggish in recent months, also needs to pick up pace. We're not surprised that the surge of refinances that occurred in the past four years has been reduced to a trickle. Now that mortgage rates have stabilized within a tight range, there is less incentive to refinance. At this point, we'd like to see more purchase activity , which would obviously be of reflective higher sales volumes. On this front, activity continues to ebb and flow. Over the past two weeks, it has mostly ebbed.

Nevertheless, we remain optimistic. The first signs of spring momentum have finally arrived. Pending home sales ended nine-straight months of declines with an encouraging 3.4% uptick in March. In another positive, February sales were revised upward by three-tenths to minus 0.5%.

Home-price growth also appears to be moderating, which should help bring inventory and buyers into the market. Therefore, we expect pending home sales to rise over the next few months. If this occurs, we should expect to see a pick up in mortgage-purchase activity.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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

Maybe you have some friends visiting from out of town. Or, maybe you’re trying to earn some extra cash by AirBNBing your spare bedroom.

Either way, the ability to really “wow” your houseguests is important.

But how can you achieve this mythical “wow” factor? It’s actually not that hard! Impressing houseguests is all about small doses of thoughtfulness. Here are five ideas:

1. WiFi Password

Just because someone is on vacation at your house doesn’t mean they’re cutting all ties with email and Facebook!

Save them the trouble of asking for your WiFi password by writing it on a piece of paper or on a chalkboard that’s visible in the guestroom. Your guest will appreciate the gesture, and you’ll avoid the awkward “I’m not sure I remember my password?” conversation.  

2. Mini Toiletries

Compare these experiences:

1. Using a half-empty bottle of Head and Shoulders from 1999

2. Enjoying a cute, mini-bottle of spa shampoo from a nice hotel

Number two is way better! Don’t force your guests to use bottom-of-barrel toiletries. It only takes a few hotel stays to collect everything your guests need (shampoo, conditioner, face soap, toothpaste, etc.). Store them under the sink until you have company! When they’re in town, place them on the counter or in a basket for easy access.

3. Pitcher of Water at Night

Think back to all of the times you’ve been a guest in someone else’s home. Two-thirty in the morning rolls around, and you wake up thirsty. Nothing would be better than a cool glass of water, but in a strange home, you probably aren’t exactly comfortable wandering around the hallways looking for a beverage in your pajamas.

Save your guests from this plight! Set a pitcher of water and a clean glass or two in their bedroom before they arrive.

4. Provide a (Clean) Robe

Fact: everything feels more luxurious when there are robes involved. Grab a spare from your collection, give it a wash if necessary and set it up in the guest bathroom. Then, add a little note saying it’s for them so they don’t have an internal debate about it when they get out of the shower. No robes? Neatly stack several hand towels and wash clothes instead.

5. The Toilet Paper Triangle

Take a page from the book of every-hotel-you’ve-stayed-at-ever: Fold the first ply of the toilet paper in your guest bathroom into a triangle! This takes 10 seconds (tops), and there’s a good chance it results in a smile and a comment from your houseguest. 

Information provided by BrightNest.com.

Search all Harrisburg PA homes for sale.

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

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

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

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

A recent article in the Washington Post was hardly favorable to housing. Basically, the article dispels the belief that a home is the best investment for most people. Other investments, such as stocks, are better investments over the long run.

The article misses the point. The home you own isn't an investment. Properly speaking, a home is an asset. It's an asset that satisfies a very basic need – it provides a place to live. That's not the proper role of an investment, which most people buy for immediate cash flow and to eventually sell at a higher price for a profit.

A home frequently satisfies the latter requirement: Over time, a home usually appreciate in value. We aver that a decade from now most homes across the nation could be sold for more than the purchase price today. In this regard, a home is an appreciating asset, but still not an investment.

A home is only an investment when it is rented to generate monthly cash flow or to be renovated and flipped for a profit. But in this case, a house is not a home. It's only a home to the family occupying it.

We might be parsing semantics here, but words matter, and the Washington Post got the words wrong.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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

Still Stuck in the Mud

Existing home sales are like a Jeep with bald tires stuck in a mud bog: The wheels spin furiously, but the Jeep goes nowhere. Not only does the Jeep go nowhere, it backslides.

So is the case with existing-home sales. For the seventh time in the past eight months, sales have backslid. Sales for March were 0.2% lower compared to February, posting at 4.59 million on an annualized rate. Year over year, sales are down 7.5%, which is the steepest rate of decline in nearly three years. Prices, on the other hand, continue to rise, with the median price moving up 5.4% to $198,000.

Now, new-home sales are adding to the sense of discouragement.

New-home sales had been trending mostly up over the past 12 months. That trend ground to a halt in March, with sales plunging 14.5% to a 384,000 annual rate , far below anyone's estimate.

Prices are an obvious drag on sales. The median price of a new home surged 11.2% to a record high $290,000. Year over year, prices are up 12.6%.

Prices in many markets are a baffling anomaly. They continue to rise, but they're not materially pulling in additional inventory. Admittedly, if you sell one home at a higher price, you'll likely have to buy another at a higher price, but rising prices tend to pull in more people willing to sell. In many markets this isn't occurring. Prices simply continue to rise, and continue to rise at a rate we thought would have abated by now.

Tight lending standards and higher mortgage rates are frequently fingered as culprits in stagnating home sales. Yes, lending standards are tighter than they were in 2006, but someone with a work history and a decent FICO score can still readily secure financing. As for rates, 4.5% continues to act as a ceiling on the 30-year fixed-rate loan. To be sure, rates spiked higher last summer, but the market should have adjusted to the new reality by now.

In the past, we've blamed a stagnating economy and weak job growth for sales failing to pick up pace. A dearth of new buyers entering the market is also to blame. One concern we have is ballooning student debt . A lot of young adults owe a lot on student-loan debt these days. That's making it tough for them to enter the housing market.

We remain positive, nonetheless. All markets are local, and all markets are complicated. There is a myriad of variables that influence value and establish trends. We think economic growth will overcome higher mortgage rates, and even higher home prices. Frustratingly, growth has been slow in coming about, but we still expect it to come sooner than later.

 Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

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

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

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

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