Economics

Central Pennsylvania Real Estate Market Statistics For February 2019

A monthly post to keep you up-to-date on what is happening in Lancaster, Dauphin, and York Counties

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Settled Units – Virtually unchanged from last year at this time. On a national level, settled units dipped over 4% in the fifty largest metro areas so our area stacks up better than the national average.

Average Sales Price – This number continues to climb at a steady rate; up almost 4% from last year which mirrors what is happening across the country.

Median Days to Sell – Twenty-five days on the market is a significant drop from last year and far exceeds what the majority of the rest of the country is experiencing.

Average Interest Rate – Almost the same as last year. Predicting mortgage interest rates is a tricky business, but most experts predict that rates will hold fairly steady until at least the spring home buying season is over.

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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.

Homes that are competitively priced under $300K are selling at a rapid pace which accounts for the extremely low absorption rates. Multiple offers on these homes continue to be the norm. Head north of $300K and the market becomes relatively balanced. However, the luxury market over a half a million is ultra competitive. Sellers who are in this price category should heed their real estate agent’s advice regarding list price because of the abundance of inventory that is sitting.

Click here to access Dauphin and York County Statistics
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Trend 8: Blockchain + Real Estate

Redesigning the Brokerage Relationships with Agents and Consumers

This is the third blog post in a series of ten that covers the trends that will shape the residential real estate industry in 2019 and beyond according to the publication, Swanepoel Trends Report 2019.  The views, thoughts, and opinions expressed in this post belong solely to the author, and not necessarily to the author’s employer or the publication cited.

If you’re like me, your eyes glaze over when someone tries to explain what Blockchain is. Most people that write about the topic are techno-geeks who are trying to impress you with their level of knowledge on the topic. Unfortunately, the average person gets lost in the Blockchain jargon about the second sentence into an article and they stop reading.

The average person’s understanding of Blockchain is illustrated perfectly in this comic:

‘Dilbert’ comic courtesy of Scott Adams

Well here’s one of the reasons why you should want to pay attention and try to understand this concept and how it could effect the real estate business: forty of the top financial services companies have already invested over $1 Billion (yes – with a ‘B’) in Blockchain company infrastructure in the hopes of reducing costs in the future.

Let me try to explain Blockchain in simple terms to that you can understand it.

Continue reading →
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Lancaster County’s April 2018 Real Estate Market – By the Numbers

The old saying, “April showers bring May flowers” is a reminder that even the most unpleasant of things, in this case, the heavy rains of April, can bring about very enjoyable things indeed – an abundance of flowers in May.  The lesson?  Patience.

So how did the rains of April affect Lancaster County’s real estate numbers?  Let’s take a look.

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2018 04 April Market Stats - Avg Sales Price

The Average Sales Price made a huge jump in April – 9%.  We have been humming along for months between 1-4% so this is a significant change.  As you will see when we examine the Absorption Rates this month, the upper price ranges (i.e. $400,000+) are now starting to move which is a good sign. Continue reading →

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A Real Estate User’s Guide To the Government Shutdown

As Democrats and Republicans fall all over each other trying to blame the other side of the aisle for the government shutdown, should you be concerned if you’re involved with a real estate transaction right now or in the near future?  Umm – it depends.

Since the Department of Housing and Urban Development (HUD) is a government agency, any borrower who applies for or, has applied to get an FHA or VA mortgage will be impacted.  Those temporary electronic highway signs on the side of the road that read, ‘Incident Ahead – Expect Major Delays’ applies here.

Since the vast majority of HUD workers were sent home early Saturday morning and they’re operating on skeleton crews, virtually no one is there to answer calls/emails, process paperwork or grant loan approvals.  UGH!!! Continue reading →

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Lancaster County’s December 2017 Real Estate Market – By the Numbers

Ahh – –  December!  As the year wound down, the cold, frigid winds of winter blew through Lancaster County.  This is the best time of year to reflect back on the year that was and to think and plan for the new one.  Now grab a pen and paper and sit down by the warm fireplace and get busy.

(Click each infographic for a larger version)

2017 12 December Market Stats - Average Sales Price

Not much change from last December’s average sales price.  As we will see at the end of this blog post, the final numbers for the year were solid and steady which indicates the real estate market was healthy. Continue reading →

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Impact of the New Tax Bill on Homeowners – Does It Make Cents?

If you’re like most people, you’ve been hearing a lot about the new tax bill from both sides of the aisle.  Predictions are all over the board as far as what it means to the average American.  Viewpoints range from an Armageddon-like implosion of the entire financial system to the invention of the wheel which will transform society.  As with most predictions, the truth probably lies somewhere in between.

Here’s my take on what the new tax bill means to homeowners and the real estate they own.  It’s important to understand that this bill doesn’t affect your 2017 tax return.  It will go into effect starting next year and expire on December 31, 2025.

Tax Rates

Here are the new tax tables to compare what is in place now versus what we will be coming up next year:

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Single Taxpayer Comparison

Married Taxpayer Comparison

The new law provides generally lower tax rates for all individual tax filers.  While this does not mean that every American will pay lower taxes, under these changes, many will.

My take:

Virtually all homeowners will benefit by having lower tax rates contrary to what many political pundits would have you believe.  All you have to do is look at the charts.  Continue reading →

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