As we just passed the midpoint of 2024, I wanted to take a few minutes to provide an update on the Lancaster County real estate market. The median price of a home in Lancaster County now stands at $325,000. On average, 400 homes sell in the county each month. Today, there are 572 homes for sale in Lancaster. This works out to almost 1.5 months of inventory – up 28% from this time last year. This is still a historically low level of inventory, but I’m hopeful this is the start of a broader trend.
Cash and conventional financing made up nearly 90% of closed transactions in the last 12 months. The best homes are receiving multiple offers without contingencies. A few mispriced homes are sitting, but the median number of days on market is still below 7 days. We are seeing more seller concessions at the periphery – especially when homes are priced at the high end of what the market will bear. Even so – if you look at the chart below, sellers are getting their price.
Higher interest rates and prices have slowed the frenzy of the last 4 years. I am starting to see a slight shift in market sentiment and inventory is gradually building. Despite this developing trend, inventory constraints alone are enough to keep us squarely in a sellers’ market for years.
In Lancaster County I expect to see lingering shortages at entry-level and middle-class price points accompanied by a renewed flattening or possibly some modest decreases in home sale prices over the next 12-24 months.
It is a great time to both buy and sell a home. Regardless of national or local trends, the most important factor you should look at is whether the time is right for you. Hopefully, this information has been helpful in putting our local market in perspective. Please contact me if you, or someone you know, have any real estate needs or questions or if you want to discuss market conditions.
