THE OFFICIAL NEWSLETTER OF TEAM TRIMBLE
As we just passed the midpoint of 2022, we wanted to provide an update on the Lancaster County real estate market. The median price of a home in Lancaster County now stands at over $302,500. This is an increase of 16% over June 2021. As we all know, these types of year over year increases are not sustainable long term.
We track home inventory levels in Lancaster County on a weekly basis. There are direct correlations between inventory levels, market activity and pricing. For the past 7 years inventory levels have been steadily dropping as prices have increased. As of May 2022, inventory levels in Lancaster County have begun to increase slightly. We are also starting to see properly priced homes stay on the market for over a week.
The frenzy of the past 2 years was fueled in part by cheap money. The sub 5% interest rates experienced over the preceding 15 years vanished in the first half of 2022. Current mortgage rates are rising and having a cooling effect on the market, but they’re still quite low compared to historical norms.
While rising mortgage rates have priced out some buyers, there are many more well-qualified buyers who have been anticipating entering a market in which
…waiving all due diligence is no longer a prerequisite to having an offer considered.
Our view is that a “very good real estate market” is going to replace the “frenzy” we have experienced the past 24 months. New construction coupled with a slight reduction in demand will alleviate some inventory shortfall, but we expect to see lingering shortages at entry-level and middle-class price points. We anticipate a dramatic slowing in price appreciation across all price points over the next 12 months as we return to a more balanced market.
Properly preparing a home for sale and pricing it correctly remains very important in all price ranges. Paradoxically, it is STILL both a good time to buy and also sell a home. Regardless of national or local trends, the most important factor you should look at is whether or not the time is right for YOU. Hopefully, this information has been helpful in putting our market in perspective.
Please contact me if you, or someone you know, or have any real estate needs or questions or if you want to discuss market conditions.
I look forward to working with you and your referrals in the future!