Lancaster County’s February 2018 Real Estate Market – By the Numbers

February’s winter winds are behind us and the days are now starting to get longer.  As we head into spring, there is always a sense of anticipation for what lies ahead.  Let’s take a look at the latest numbers.

(Click on Infographics for larger size)

• Average Sales Price – A huge jump of 7% from last year at this time.  As the supply of inventory continues to struggle to keep up with demand, expect prices to continue their healthy upward trend.

• Active Listings – The second month in a row where the supply of listings was over 40% less than last year.  Buyers who want to buy a home for less than $300K continue to toil to find a home that fits their needs.  Builders have been slow to ramp up their operations since the recession and are taking a very cautious approach to starting new homes.
• Settled Units – Dipped 15% this past month mainly due to the lack of inventory.
• Average Interest Rate – It looks like the predicted rise in interest rates is upon us.  While still historically low, if you’re in the market for a home, waiting could cost you money.
• Median Days to Sell – Still hovering in the 30’s which is great news for sellers who don’t want the long hassle of endless showings and the unpredictability of when they are going to receive an offer on their home.

• Absorption Rates – Absorption rates are the rates at which available homes are sold in a specific real estate market and price range during a given time period.  It is calculated by dividing the total number of available homes by the average number of sales per month.  The rate represents the number of months it would take to clear out available inventory if no other homes come on the market.  Talk about the tale of two markets.  The market below $300K is booming.  Competitively priced properties typically are only on the market for less than a week before they receive multiple offers.  On the other hand, the sale of properties over $300K continues to wane.  If a seller’s property is not priced correctly, chances are it will sit until they get realistic.

Until next month – all the best!