HARRISBURG HOUSING BOOM 2004

For Immediate Release:  January 17, 2005                                             For More Information:  W. Greg Rothman

                                                                                                                                                grothman@rsrrealtors.com

(Harrisburg, PA)   Since 1995, local real estate broker and analyst Greg Rothman, CCIM has been chronicling the gentrification of the City of Harrisburg.  

In 2004, there were 167 sales in the Rothman targeted area.  This is an increase from 127 sales in 2003.  The volume in 2004 was $16,339,065, up from $12,761,383 in 2003.

The targeted neighborhoods in the Rothman Study are the Mid-town, Shipoke, the Central Business District, North Second Street, Italian Lake, Bellevue Park and since 1998, Capital Heights.

According to the Central Penn Multi-List real estate values climbed 9.5% in 2004.   Rothman predicted double-digit appreciation in his report at the beginning of the year.  “The first half of the year was so strong that things were bound to slow down in the last quarter.”

“Additionally, the election and holidays contributed to the last quarter slow down.”

“To be sure, the real estate market remains the leading economic sector in the region.”

“Our region's biggest challenge in 2005 will be to provide the supply to meet the demand for housing.  Interest rates remain below six percent, unemployment in the region is below average and the Harrisburg MSA is a great place to live.  Demand will be as strong in 2005 as 2004, but we may not be able to provide the houses necessary to meet that demand.  Anti-growth movements in the suburban rings may drive up prices out of the reach of the middle class.”

There are traditionally over 3,000 properties for sale at any given time, in 2004 there were only 1,800 properties on the market.   The average days of the market have dropped from 89 days in 2000 to 52 days in 2004.

Rothman is President/CEO and Broker of Record of RSR REALTORS.  RSR REALTORS is celebrating their 35th anniversary.  Greg Rothman joined RSR in 1989 and became a partner in 1999.   Rothman recently completed his term as President of the Greater Harrisburg Association of REALTORS®.

In 2004, he closed over $21 million dollars in real estate.  In the last seven years he has closed over $100 million in transactions in Central Pennsylvania.