Home sales in the association's coverage area, which includes Cumberland, Dauphin and Perry counties, were down nearly 51 percent from the 2006 peak.

Median sale price also dropped 7 percent from the 2007 high, according to the Central Penn Multi-List, the association's statistical arm.

For builders like Swatara Township-based Fine Line Homes Inc., a company that targets move-up buyers and empty nesters, none of that is good news.

"The main problem is that people can't sell the houses they are currently in," said Bernie Campanella, a Fine Line housing consultant.

With more stringent lending requirements following the 2008 financial collapse, coupled with the tumbling prices and lengthy listings, many sellers are not able to get the equity out of their current homes to buy that next home, Campanella said. Minimum down payment requirements also can be a challenge for many first-time buyers and others with poor credit.

To ease the burden and make ownership easier for consumers, as well as sell off new home inventory, Fine Line has offered a rent-to-own option since 2009.

Unlike other incentives, the Dauphin County builder's program gives half of the monthly rent back to the buyer upon purchase of the home. That process typically takes about two years; that money is applied to the purchase price as a down payment or to help with closing costs on the mortgage.

Rental rates are comparable to the future mortgage payment to avoid sticker shock, Campanella said.

In this area, Fine Line has eight single-family and five townhome communities in seven municipalities in Cumberland, Dauphin and York counties. The majority of its single-family offerings range between $400,000 and $500,000, while townhomes cost an average of $185,000 to $215,000, Campanella said.

"We were carrying some inventory," he said about initiating the incentive with the market on the downturn. "We may never get back (to where the market was). We may be at the new norm."

In 2006, the three-county area saw sales of 9,210 units. In 2011, sales dipped to 6,118, according to the multi-list. Median-sale price came in at $155,000.

For Jeffrey Moore, the owner of a Swatara Township townhome in the Chambers Knoll community, the rent-to-own program helped his family quickly realize its dream of homeownership.

"We had very minimal out-of-pocket expenses because of that program," said Moore, one of two to complete the purchase process. Another eight are active in the program, Campanella said.

The amount of cash available at closing made securing the loan a breeze, Moore said. He closed on the purchase in December.

If he had to cover rent and other household costs, in addition to saving, buying would have been a much longer process, he said.

"It gives you time to get your affairs in order," he said. "You are already in the home, so (the program) gives you motivation (to complete the sale). To me, it's a win-win. You are going to pay that money for that level of property anyway."

More renting

With many sellers struggling to unload their properties and get the price they need to apply to the next home, more and more are turning to property management firms to rent, said Glenn Lehman, owner of Harrisburg-based Lehman Property Management.

"They can't get what they want and they don't want to get foreclosed on," he said.

While many sellers are still not getting enough monthly rent to cover mortgages and tax bills on the property, they are getting most of what they need, Lehman said. Depending on the location and school district, sellers might be able to command more in rent, but the taxes likely are higher, he added.

In a down market, it's also not uncommon for Realtors to contact property management companies about renting the property while they try to sell it, Lehman said.

"Getting the mortgage paid is the primary factor for the owner," he said.

Finding qualified tenants is the next challenge, followed by ensuring the maintenance is kept up by the owners, Lehman said.

Still a renter's market

York County had the highest median monthly mortgage payment — $1,490 — in the Business Journal's five-county coverage area, according to the U.S. Census Bureau's 2010 American Community Survey.

The lowest median mortgage payment was in Lebanon County at $1,340.

At a rate of 38.2 percent, Dauphin County had the most residents paying monthly mortgages between $1,000 and $1,499, according to the Census. York County had the most residents paying monthly mortgages of $1,500 or more at 49.3 percent.

In York County, the median gross
rent was $796 per month, according to the Census. Roughly one-third of renters paid between $750 and $999 per month. More than 19 percent paid $1,000 to $1,499 per month.

In Dauphin County, the median gross rent was $787 per month. Again, roughly one-third of renters paid between $750 and $999 per month, the Census said. Nearly 19 percent paid $1,000 to $1,499 per month.

York County had the most homeowners who still pay mortgages at 69.8 percent, the most in Central Pennsylvania, according to the Census.