Lancaster County Real Estate Market Statistics for December 2019

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The year 2019 is now in the rear view mirror as we head into a new decade. I have to say that overall, the real estate market in Lancaster County was strong and robust. Let’s take a look at the final numbers for the year.

(Click on infographic for a larger version)

Average Sales Price – A five percent increase is a healthy gain from last year at this time. As we will see when we look at absorption rates, the upper end of the market continues to loosen up and gain some traction which indicates that buyers are beginning to move up from lower price ranges. This segment of the market in Lancaster County has been lagging behind so this is a good sign. We’ll see if this positive trend continues into 2020.

(Click on infographic for a larger version)

Settled Units – Even though the inventory of homes remains tight, settled units were up significantly from last year. Buyers continue to remain confident in the real estate market despite having to compete with other buyers when it comes to putting a home under agreement.

Median Days to Sell – This number continues to hover at historical lows. 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 almost 9/10 of a point compared to 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 $107.25/month or $38,610 over the life of the mortgage.

(Click on infographic for a larger version)

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 teetering between a buyer’s market and a seller’s market. 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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