May
9
Lancaster County Real Estate Market Report May 7, 2008
Posted by Merle Sollenberger under For Buyers, For Sellers, Regional - Northeast, Regional News, Lancaster
We see continued strengthening in the local real estate market in the last month. The numbers from my May 6, 2008 search in the Lancaster County MLS indicate the following:
Active Listings UA Listings Ratio 2007 Ratio 2001 Ratio
May 6, 2008 2,638 922 34.95% 48.47% 43.30%
April 6, 2008 2,523 808 32.03% 50.33% 38.11%
March 6, 2008 2,403 745 31.00% 50.76% 34.49%
February 2, 2008 2,340 576 24.62% 47.33% 28.60%
January 5, 2008 2,273 484 21.29% 33.22% 23.10%
In spite of the news we hear, the local market is strengthening a bit. Looking back to 2001, we see that the ratios are not as strong now as they were then, but they are not significantly weaker. Looking at the number of properties that went Under Agreement from March 15, 2008 through April 15, 2008, there were 1,089 indicated in the MLS. During the prior year period there were 1,159 properties that went Under Agreement. That represents a decrease of 6.04%. Comparing that to the 17.80% decrease for the January 15, 2008 through Feb 15, 2008 time period compared to the prior year, 6.04% is an improvement. Earlier this year I suggested that the market may have bottomed out, and this information I believe confirms that.
The national economic news continues to include the word “recession”, but also includes the word “Inflation”. Inflation treats homeowners well with increasing property values. Employment information shows increased jobless claims, but employment is still high, with the unemployment rate being near the 5% rate that economists consider “full employment”. Consumer confidence is reported to be the lowest in several years, probably due to the increase in gasoline, diesel fuel, and heating oil prices. In October of 2000 gasoline was prices around $1.72 per gallon. With gas at $3.65 per gallon now, consumers are spending a larger portion of their income on energy. This will influence consumers to more carefully consider property location and that affect on their driving time, and they will be more eager to buy energy-efficient homes.
I’ll repeat here from last month: however mortgage interest rates are still low, which helps buyers afford a higher price house. Lower rates helps buyers, which also enables sellers to sell houses. As I review the sales activity with other agents in my office it is clear that people are buying houses. We are even seeing some multiple offer situations occasionally. That is not as frequent as it was in 2004, but says something about the market.
Prepared by: J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®Prudential Homesale Services Group 717-560-9100 www.msollenberger.com msollenberger@topproducer.com
150 North Point Boulevard, Lancaster, PA
17601
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