May is always a month of transition. Winter is definitely behind us but summer is not quite here. Some nights you can sleep with the windows open to breathe in the refreshingly, cool air; some nights it’s downright frigid and the windows are closed.
All across Lancaster, small signs are appearing right before our eyes that point to what lies ahead of us in just a few short weeks – – like the corn sprouting from small seedlings in hundreds of fields across the county.
Is the real estate market sprouting and following suit? Let’s look at the numbers . . .
(Click on each infographic for a larger version)
Average Sales Price – We cracked the two and a quarter mark for the first time ever. Up 7% from last May. This healthy rise is mainly due to extremely low inventory levels which don’t appear to be going up anytime soon.
Active Listings – If there is one problem with this month’s numbers, it’s right here. Down 45% from last year. Buyers are finding it difficult to find what they’re looking for and when they do, it’s gone or they find themselves in a multiple offer situation.
Settled Units – While it’s a little disappointing that we’re down 8% from last year, this is a remarkable number when you take into account that inventory is down as much as it is.
Average Interest Rate – The slow, steady rise continues. Even though rates continue to inch up, when looking at them in historical perspective, they are still incredibly low at 4.6%.
Median Days on Market – It’s hard to believe that homes are now going under agreement in less than 2 weeks.
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 came on the market.
The only price category where we find ourselves in a Buyer’s Market is homes over $500K. Even then, the months of inventory continues to decline. Homes between $120-200K are flying off the shelves with an absorption rate of less than two.
Until next month . . .