Lancaster County Real Estate Market Statistics for November 2019

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Now that Thanksgiving has come and gone and we’re recovering from a massive overload of turkey and stuffing, it’s time to look at how the real estate market fared in November as we draw closer to the end of the year.

(Click on the infographic for larger view)

Average Sales Price – A nine percent increase is a big jump from last year at this time. Typically, when we see big jumps like this it is an indication that the market might be overheated which is not a good thing. As we will see when we look at absorption rates, I think this increase is due to the upper end of the market starting to loosen up and gain some traction with buyers moving up. This segment of the market in Lancaster County has been lagging behind so this is a good sign.

(Click on the infographic for larger view)

Listing Inventory – Down a little over five percent from last year. The supply of homes continues to be tight which accounts for some of the healthy rise in average sales price.

Settled Units – Even though the inventory of homes remains tight, our numbers continue to hold relatively steady when compared to last year at this time which bodes well for the local market.

Median Days to Sell – This number continues to hover at about two weeks. If you’re a seller and your home has been on the market for a month without an offer, you need to get more realistic with price. Don’t let your home get stale.

Average Interest Rate – They are down over a full percentage point from last year. If you’re a buyer trying to secure a thirty year, fixed rate mortgage of $200,000, that’s a difference of over $125/month or $45K over the life of the mortgage.

(Click on the infographic for larger view)

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 upper end of the market is finally responding to lower interest rates and a healthy market. For months, homes over $500K+ have been lingering on the market but we’re now beginning to see a change. We are now approaching equilibrium in this price range. This is the biggest reason why the average price in the county has shot up. Overall inventory continues to be tight which will more than likely cause aggressive gains in the average priced home in the coming months.

Until next month – – –

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