According to research conducted by The Patriot-News, the midstate’s economy is doing pretty well. In fact, better than the national average. Two key indicatores are:

Unemployment Rate Foreclosures

Harrisburg Area 4.1% Up 7% in 2007

Lebanon County 3.9%

York County 4.3%

National 4.9% Up 75% over previous year

Overall, Central Pennsylvania did not experience skyrocketing home prices or new build growth like other areas of the country. Therefore, we are not suffering from the “pounding” that other areas of the country are currently trying to endure. Living in the midstate is a great thing!

According to an article published by The Associated Press in The Sunday Patriot News (March 23, 2008), mortgage lenders are making it harder for potential borrowers - even borrower’s with good credit. Borrowers who can not afford to put the traditional 20% downpayment on a home require the backing of a mortgage insurer.

In recent weeks, mortgage insurers have flagged nearly 25% of the nation’s zip codes where they refuse to insure home loans. The following states have experienced the highest foreclosure rates and the worst price declines therefore the entire state is blackballed for some mortgage insurers: Arizona, California, Florida, Michigan, Nevada, and Ohio.

On the flip side, in central Pennsylvania, the housing market continues to fare better than most. In 2007, home prices continued to rise and foreclosure files increased only moderately.

What does this mean for new home buyers? It can mean that higher downpayments, a more thorough review of credit scores, among other requirements. In areas where the home values are declining, more restrictions are in place however regions such as central Pennsylvania are not immune although home values are rising.

It’s March 21 and so far this month, 920 homes have been listed on the MLS and 464 have sold. That’s not bad for 21 days. Let’s see how we end the month.