Brian Schulman - Your Lancaster County, PA Real Estate Expert

Yup, that's right - the Second Lancaster, PA Real Estate Bloggers Summit tied its previous attendance record. That is to say, all three of the Charter Members were there - myself, Jeff Geoghan, and Jeannie Kontis!

We met on April 29 at Senorita Burrita, a trendy cafe in the heart of downtown Lancaster. Jeff had eaten there a number of times before, but for me it was the first time. I was amazed at the size of the customizable burritos - truly a two-handed affair! Makes the Whopper look like an appetizer...

There have been a couple of major real estate franchise changes in Lancaster County recently. Homesale Services Group has switched from Coldwell Banker to Prudential, and Realty Select has acquired the Coldwell franchise. That really spurred the conversations as we talked about personnel changes, office politics and business strategies.

Of course, no meeting would be complete without comparing the latest blogging techniques and technology. New improvements are arriving at such a fast pace these days that it's nice to bounce ideas around with fellow agents to see what seems to be working effectively, and what may not be worth the investment.

We all agree that these lunches have become both pleasant and useful, and we plan to get together again for future networking.

There has been a great deal of negative publicity about the subprime mortgage industry. High interest rates and the adjustable rates that are now resetting have been a major cause of foreclosures and the unrest in the housing market.

Don't misunderstand me. There's plenty of blame to go around. Many borderline borrowers went way beyond common sense in the houses and mortgages they committed themselves to. Many real estate agents did not adequately prepare their buyers for the worst cases possible in their mortgage terms. And many loan originators were only too happy to have more transactions provided by the extremely liberal past credit requirements, even if the resulting loans would be riskier.

Having said that, there is now a concerted effort in the media to find blame and point fingers. There is certainly a place for reasoned analysis of what happened. As it is said, those who are ignorant of history are doomed to repeat it. But there is also a risk in going overboard. The sensationalism is pushing lenders and buyers way too far in the opposite direction.

Markets are driven by alternating cycles of greed and fear. Right now we're in a fear cycle. Lenders have overreacted by making some qualification standards too strict. Many buyers, too, are fearful of making any commitment in such an atmosphere. It may take a while, but the pendulum always swings back around again.

There was (and still is) a need for what used to be called subprime lenders. We can't use that term anymore because of the stigma attached to it. There were indeed dishonest opportunists in the industry who overcharged borrowers and sneaked insidious terms into their contracts. But that doesn't mean that the need for risk-priced mortgages has disappeared.

There always will be a continuing need for higher risk loans to higher risk borrowers at a commensurately higher rate of interest or fees. The renewed popularity of FHA shows that this market isn't going away.

And for buyers with good credit, the traditional mortgages are still available, with the best interest rates in years.

If you would like a no-obligation consultation on the real estate market or mortgage situation in Lancaster County, PA, please feel free to call me at (717) 951-5552.

Copyright2008BrianSchulman©

As I drove through Millersville, PA this morning, traffic was blocked on North George Street, the main thoroughfare past the University. There were several Millersville University police cars, a policewoman directing traffic, and what looked like a TV news crew truck.

At first I thought it must have been another vising politician. With the Pennsylvania presidential primary scheduled for April 22, Hillary had been here last week with a large police entourage, and Senator Obama was in Lancaster earlier this week.

It turned out that the University was under lockdown for 90 minutes. A student had reported to police that he was afraid of another student. He apparently believed that the other student had a gun and was a threat to the student body. With recent shootings at other universities, such reports are taken very seriously. A student was detained and taken in for questioning.

Penn Manor High School and Eshleman Elementary Schools, both nearby and in the Penn Manor School District, were also locked down.

Students were told to remain calm, to stay inside their buildings, and that they were not in danger.

Spring arrived yesterday! The vernal equinox is here. It didn't feel like Spring yesterday, what with the cold winds and temperatures in the 30s. Today in Lancaster County, PA the day started in the 30s as well - but it warmed up and the sun is out!

Buyers, who may have been hibernating for the winter, have been timidly emerging from their caves and testing the housing waters again.

Spring is a time for rebirth. It's always been my favorite season. You can actually smell the difference in the air. There's an excitement, a feeling of possibilities, an energy that seems to return to both our surroundings and to ourselves.

Today is Good Friday. I have a feeling that new and positive things are going to be in store for us in the coming real estate season. I'm motivated to work hard and help to make those good things happen. But not this weekend. This weekend I'm going to quietly appreciate the Spring weather and the greening of the grass. To all my friends who read and contribute to Active Rain, I wish a happy and peaceful Easter.

Copyright2008BrianSchulman©

Robert Fulton, born in Lancaster County in 1765, was the first to make navigation practical with a ship powered by steam. Fulton did not invent the steam engine, but he made history with his steam powered voyage on the Hudson River in 1807. A township in southern Lancaster County is named after him.

Milton S. Hershey, whose name has become synonymous with the chocolate bar, actually started his first milk chocolate factory in Lititz, Lancaster County, PA. Hershey learned his trade in Lititz, before founding the famous factory and town that was named after him in nearby Dauphin County.

The Stehli Silk Mill in Lancaster, recently slated to be converted to residential condos, was at one time the largest silk mill under one roof in the world.

The Follmer-Clogg Umbrella Corporation, located at West King and Mulberry Streets in Lancaster, was once the largest umbrella factory in the world. It has now been converted to residences known as The Umbrella Works.

The Hubley Manufacturing Company in Lancaster was once the largest manufacturer of toys in the world. Vintage Hubley toys (pronounced "Hoobley" by the locals) are now highly prized by toy and antique collectors.

The Famous Woolworth's 5 & 10 Cent Store was first founded by Frank Woolworth in Lancaster in 1879, after a previous unsuccessful attempt in Utica, NY. His original Lancaster store was located at North Queen and Chestnut Streets. Woolworth later went on to establish his corporate headquarters in New York City in the skyscraper named after him.

Armstrong World Industries, with headquarters in Lancaster, is the largest resilient flooring and ceiling tile manufacturer in the world. It was forced to file for bankruptcy in 2000 due to a class action asbestos lawsuit. It emerged from reorganization in 2006. It had a huge factory complex in Marietta, converted from a former defense plant. Armstrong currently operates in 39 different countries. Its Training Center in Lancaster, established in the Armstrong Manor in 1920, is said to have been the first residential training center for single young men.

Copyright2008BrianSchulman©