Real Estate Information and Homes For Sale

Hold on to the remote, this news may shock you: the average cable bill is $75, and that number is expected to rise about 5 percent every year. That’s a pretty steep price increase for your favorite shows! If you can’t imagine cancelling your cable, there are a few tricks of the trade that can help you reduce your bill by up to 20 percent. That can amount to $180 or more saved each year!

1. Do your homework. Unless you live in a one-horse town, there should be more than one cable company operating in your area. Do your research and find out what deals are being offered to you. This isn’t necessarily because you want to switch – you want the information to use as leverage when you call your cable company! You also want to make sure that you know the deals that your company is offering to their new customers. Note: You may need to do some digging online to find this information.

2. Compare and contrast. Your cable bill is like an airline ticket – people pay very different prices for the exact same results! Ask your neighbors, friends and family members what they’re paying. Again, this can be used as leverage when chatting with the cable company. If you can establish that other people are paying less than you, they’ll often match a lower price or add promotions to your account that lower your bill.
    
3. Have a goal. To stay focused, it helps to set a specific price goal before you call the cable company. Make sure it’s realistic – a 15 percent reduction is still a major win.
    
4. Be calm. We’re not saying that you shouldn’t be a little irked that you pay twice as much as your friend for the same service – just don’t show the cable company that. Make sure you’re in a calm state of mind before you call the cable company. In this situation, flattery is the name of the game. You want the customer service representative to know that you love their service – you just can’t afford to pay such a high price every month.
    
5. Provide a little background. You wouldn’t ask out a date without flirting a little first, would you? (Don’t answer that.) Before you jump right to the big ask, give the customer service representative a little background. Say you’re going through your yearly budget and realized that you just can’t afford their service, or even play the blame game and say your spouse wants a lower bill. If they realize why you’re asking, they’ll be more willing to work with you to solve the problem.
    
6. Bring out the big guns. Once you’ve established what you need and schmoozed a little, it’s time to mention a competitor. Make it clear (without being overtly hostile) that you’re thinking about cancelling unless they can lower the bill. Don’t actually say you will cancel, or the call may end with you losing access to your favorite shows. Instead, just say you might be forced to quit since you’ve found a better option.
    
7. Try again. If your first call isn’t fruitful, it may just be that the specific agent you talked to wouldn’t play ball. Cable companies have a lot of employees. If you’re not getting anywhere, ask to talk to their loyalty department – they’ll have access to deals that the customer service department doesn’t. If you still don’t get a lower bill, try again on a different night of the week. Think of each call as a first date – you’ll eventually get lucky and meet the perfect customer service rep for you!

This past week, the Federal Reserve announced it would cease using new money to purchase longer-term Treasury securities and mortgage-backed securities (MBS). This has lead many market watchers to believe interest rates will start to rise. After all, reduced Fed demand will lead to higher yields.

It's not quite that simple. For one, the Fed will continue to reinvest the proceeds of maturing notes, bonds, and MBS into new notes, bonds, and MBS. The Fed has also said that it won't allow its portfolio of these holdings, which exceeds $4 trillion, to shrink until it starts raising short-term rates. This isn't expected to occur until the second-half of 2015 at the earliest.

In addition, banks are picking up the slack in demand. Recent rules approved by the Fed, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corp. leave banks about $100 billion short of the $2.5 trillion in easy-to-sell assets that they need to meet new liquidity standards. Treasury securities and MBS help banks meet the standards.

At the same time, supply of Treasury securities is expected to drop. A falling fiscal deficit will result in less Treasury-debt issuance going forward. According to the CBO , the deficit for 2014 – for the fiscal year that ended on September 30 – was $486 billion, $194 billion less than the $680 billion deficit recorded in 2013. That’s the lowest deficit since 2007.

In short, we don't expect a meaningful increase in mortgage rates for some time, possibly not until the second quarter of 2015.

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.

Better Pricing Driving More Sales

We've frequently mentioned that a slowdown in home-price appreciation would help drive sales volume. So far, our thesis has proven correct.

New home sales surged to 467,000 units on an annualized rate in September. This was the best monthly display since July 2008.

Discounting by home builders was a key factor in driving volume. The median price of a new home dropped 9.7% to $259,000 in September. Before the decline, the year-over-year median price was trending higher. But now the median new-home price is actually 4% lower than it was this time last year.

New-home prices should stabilize going forward. Supply remains muted, with 207,000 new homes on the market. This means that supply relative to sales is at a reasonable 5.3 months.

It appears existing-home sales might start trending higher with new-home sales. The pending home sales index was up 0.3% in September. This isn't a monumental increase, but it does point to another monthly gain in existing-home sales for October. The year-over-year trend in the index is another subtle plus. It had spent most of 2014 in the red but is now back in the black with a 1.0% gain.

As for home prices, the S&P/Case-Shiller Home Price Index shows they were down in 12 of the 20 cities the index follows. In aggregate, this translates to a 0.1% index decline. This marks the fourth-consecutive monthly decline, which drives the year-over-year gain down to 5.6% compared to 6.7% in July. The downward trend will likely persist: Zillow projects the year-over-year gain will drop to 4.7% when Case-Shiller reports September numbers.

Continued improvement in gross domestic product (GDP ) growth should keep home sales moving forward through the end of the year. GDP growth decelerated in the third quarter, falling to 3.5% on an annualized rate, compared to the second quarter's 4.6% annualized rate. That said, 3.5% is respectable, and still beat the consensus estimate for 3.1% annualized growth. What's more, GDP growth at the current level should keep monthly job growth above the coveted 200,000 level.

Now, we just want to see an uptick in purchase-mortgage activity. Last week's numbers from the Mortgage Bankers Association weren't terribly encouraging. Purchase volume was down 5.0% for the October 24 week despite the fact rates remain low: sub-4% is still regularly quoted on the 30-year fixed-rate loan. What's more, rates are showing little inclination to move materially higher.

The question is, will mortgage rates remain sedated now that the Federal Reserve has ended quantitative easing?

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.

Mortgage rates in the U.S. declined, remaining at a 16-month low as more affordable borrowing costs fuel an increase in refinancing.

The Bloomberg article, http://bloom.bg/1zm4zZB, discusses what mortgage interest rates can accomplish for homeowners looking to refinance their current mortgage. But I have found that the lower the mortgage interest rate goes more potential home buyers come to the market looking for “good deals” when purchasing a home. Well, good deals are in the eyes of the beholder. In most cases the deal means what is it going to cost on a monthly basis to live here? With the average selling price in the greater Harrisburg area being close to $190,000 a difference of 3.875% (current rate) vs 4.50% (high this year) means that you could save approximately $3600 - $4100 per year. AND that means it stays in YOUR pocket. And the same can be said if you are looking to refinance your current loan.

Why mention this now? It has been shown that there can be less competition at this time of the year because many are contemplating the holiday season. Less competition means you also may be able to negotiate a better purchase price from the seller. So never decide that you cannot purchase a home at this time but when you consider lower mortgage interest rates and probably less competition it may be the time to get serious. And yes I strongly suggest a consultation with a bank or mortgage lender because they can assist you in attaining home ownership. In addition, if you are looking for a source of actual homes available for sale in the Central Pennsylvania market please click here to  see the available inventory.  

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

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

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

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

It won’t be long now! The neighborhood kids are planning their costumes as you read this. Masks, robes and mummy tape. Maybe even a Justin Bieber hairdo!

Can your house handle the barrage of children begging you for treats? If you’re not sure, then you’re not ready. It’s time to gear up!

1. Decorate your door. This is the first step in any trick-or-treating preparation session. Set up some Halloween decorations on your front door or in your yard, and don’t hold back! The spookier the better. Don’t forget a few jack-o-lanterns, either. If you want to break the mold a bit, try a no-carve pumpkin this year. Note: If you do decide to go with a lit pumpkin, make sure it’s placed well away from areas that trick-or-treaters will be walking through.
    
2. Optimize your lighting. Since your front yard will be getting more foot traffic than usual on Halloween, it’s important to make sure your guests can see so they don’t take a tumble. If you don’t have any exterior lights over your front door, consider adding a few lanterns along your walkway so you don’t have children falling down in your yard.
    
3. Hide your valuables. This isn’t about robbery so much as accidental damage. If you have any delicate ornaments, flowerpots or statues around your front door, relocate them until November. That way, they can’t be damaged if that cute little mummy trips on his or her costume.
    
4. Buy plenty of candy. Nothing squashes a child’s hopes and dreams like knocking on a door that doesn’t have any candy left. To ensure the survival of youthful happiness in your neighborhood – buy plenty of candy. If you live in one of these extremely popular trick-or-treating neighborhoods, consider going to a wholesale store like Costco or BJ’s, just to be safe.
    
5. Wear a costume. It’s not as bad as running out of candy, but answering the door on Halloween wearing a sweater and jeans is kind of a buzz-kill for the kids. Even if you put it together in five minutes, a costume is always a good idea!

The drop in mortgage rates has fueled a surge in refinance activity. Last week, the Mortgage Bankers Association reported that refinances were up 11% week over week. When the MBA reports on this week's activity (next week), we expect to see continued strong demand.

It's been a different story for purchase activity. Last week, the MBA's purchase index was down 1%. Year over year, the purchase index is down 4%. This is not good news, especially when you consider that cash sales are dropping as a percentage of overall sales, and will likely continue to do so.

Now, we get the report that home builder sentiment is dropping too. The National Association of Home Builders' (NAHB) sentiment index dropped to 54 in October, which is a considerable decline from the 59 posted in September. Home builders, like a lot of other people, are feeling less sure of themselves these days. We hope the drop is a one-off reading, but time will tell.

Falling interest rates, as we note above, are an indicator of falling confidence and rising risk aversion. This is why we don't get terribly excited when rates continually fall. To be sure, falling rates are good for refinance business, but for the overall health of housing and mortgage lending, we need to see a pick up in purchase activity. For that to occur, we need more confidence and less risk aversion. This, we believe, will be reflected in rising interest rates.

So if we cheer-lead on occasion for rising rates, it's not because we favor rising financing costs, it's because we favor more business and consumer confidence and more economic growth.

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.

And Off the Cliff They Go

Last week, we mentioned that we would not be surprised to see a further reduction in mortgage rates, given the many conflagrations and overall rise of worry around the world. It appears that we were somewhat reserved in our expectations, because we didn't expect to see the drop in rates that occurred over the past week.

Looking at the national numbers, we see Bankrate.com is reporting an average rate of 4.01% on the 30-year fixed-rate loan, which is a dramatic 17-basis-point week-over-week reduction. Freddie Mac's survey shows the national average on the 30-year loan is down to 3.97%, a 15-basis-point week-over-week drop.

Today, mortgage rates are about as low as they've been in the past 18 months. That mortgage rates have fallen off a cliff in the past two weeks is no surprise, given that the yield on the 10-year U.S. Treasury note has also fallen off a cliff. If you want a good proxy for mortgage rates, follow the yield on the 10-year note.

Risk aversion among financial market participants has certainly risen over the past month. Stocks, as most of us are aware, have experienced a harsh sell-off. The S&P 500 Index, which is composed of 500 of the United States' largest corporations, is down over 7%. That's a dramatic move. Because bonds – Treasury bonds in particular – are viewed as alternative investments (safer alternatives) to stocks, much of the money that has moved out of stocks has found a new home in bonds, which is why we've seen such a steep drop in yields.

A weakening global outlook is the overarching concern these days. With economies interconnected like they've never been before, when one country's economy weakens it can impact another country's economy.

To be sure, the United States' economy is chugging along fairly briskly, with gross domestic product (GDP) posting at 4.6% on an annualized rate in the second quarter. The problem is the rest of the world, particularly Europe, Japan, and China, are showing signs of running out of steam.

This has investors in the United States worried: If the rest of the world sneezes, we could catch a cold, meaning the strong growth we've seen in recent months could prove fleeting. Now, toss in ISIS, Russian and European hostilities, and Ebola, and it's easy to understand why financial market participants are so risk averse these days.

Low interest rates, including low mortgage rates, are the silver lining in these worrisome clouds. Given the level of uncertainty and fear permeating financial markets, we don't expect mortgage rates to move meaningfully higher in coming weeks. Many lenders view this as good news. We, on the other hand, are more circumspect, as we'll explain below.

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.

For humans, Halloween is a time to embrace your inner-monster (or Lady Gaga) and spend a night masquerading as someone, or something, new. For your pets, it’s a night fraught with potential hazards like mounds of dark chocolate, hot candles and a sudden increase of strange visitors. Make sure your pet stays calm and safe this All Hallows’ Eve by paying attention to these potential hazards.

Candy

Those bags of candy are a great treat for your kids, but ingredients like dark chocolate and artificial sweeteners are toxic to dogs, cats and birds. If you have a pet in the house, keep all of your candy sealed and out of pet-reach.

Candles 

It’s always nice to set a spooky mood on Halloween, and that usually means candles. If you decide to put candles in your jack-o-lanterns, make sure the pumpkins are placed somewhere your pet can’t knock them over. If you have a cat, consider forgoing candles in your window sill. They may look nice now, but it won’t be so good when Fluffy’s tail catches on fire. Instead, try some electric candles!

Trick-or-Treaters 

For some pets, especially territorial dogs, having the doorbell ring every five minutes is a very stressful situation. When you throw in a group of costume-clad strangers at the door, it can be downright terrifying! If your pet is going to be upset by trick-or-treaters, keep him or her in a quiet room where they won’t be bothered by the goblins and ghouls visiting the house.

Pet Costumes

There’s no denying that a dog in a ladybug costume is pretty much the cutest thing in the world. But, your dog might not think it’s quite as fun as you do. If you’re going to dress up your pet, make sure they seem comfortable with their outfit. A stressed-out pet will chew their costume and possibly hurt themselves trying to get it off. If they don’t seem happy when you put on their costume, snap a quick photo and then take it off.

That's Not Necessarily Good News

Many of our colleagues remain convinced that low-interest rates are vital to rejuvenating home sales (particularly in existing homes) and keeping housing starts on an upward trajectory. But we think that boat has long sailed. We say that because low interest rates are indicative of the issues we mention above: geopolitical upheaval, slow global economic growth, and weakness in employment growth in a key U.S. demographic.

In addition, low rates are indicative of banks that are flush with cash and simply aren't seeing the opportunities to put that cash to use. Bloomberg reports that banks have accumulated so much cash that deposits exceed loans by a record amount. Banks make money lending, and are motivated to make loans when the opportunity arises. Instead, they've been plowing money into low-yield Treasury securities. That tells us two things: A dearth of lending means there is still a dearth of economic growth. On the other side of the coin, bank demand for Treasury securities will help keep interest rates – mortgage rates included – low.

When Federal Reserve officials begin to back off their cautious talking points and begin to talk up the economy, interest rates will rise. But that will be a good thing, because we'll have an economy marked by more opportunities that can support higher interest rates and a more market-driven lending environment.

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.