Typically, I provide two market updates a year: one in January and one in early July in which I review the sales volume and prices compared to previous years. THIS IS AN ATYPICAL YEAR! This year, the numbers are skewed. January, February, and early March were incredibly busy with what I would call a robust market. Due to the pandemic, real estate in Lancaster County was shut down for two months beginning in mid-March.

Since the reopening in late May, the market has picked up right where it left off. Even the very high-end home sales are stronger than before the pandemic. A shortage of inventory and low interest rates continue to propel sales despite record unemployment numbers.

Surprisingly, interest rates have been decreasing over the past 12 months. The average 30-year conventional rate is almost 1% lower than last year. Buyers are securing interest rates below 3% for 30-year mortgages.

Inventory levels typically rise starting in late winter and through the Spring and summer months. This year, inventory levels have remained flat.

Finally, sales prices are moving up dramatically, with increases as much as 10% in some price points. Depending on price point and location, we are seeing most homes command multiple offers; five or more offers within days of listing is not uncommon. In addition to full price and over-asking offers, buyers are also making the terms more attractive to sellers by waiving inspections or paying cash.

Clearly, it is a strong market. My expectation is that the market in the lower price ranges will remain incredibly competitive through this year. I also expect continued, steady strengthening in the higher ends of the Lancaster County market. Homes priced over $700,000 are drawing traffic and selling even though inventory levels remain high. With all the above said, properly preparing a home for sale and pricing it correctly remains very important in all price ranges.

Paradoxically, it is a great time to both sell and buy. Although the Spring and Summer months may see an increase in activity, the most important factor to consider is whether the time is right for you. Regardless of national trends or local trends, the most overlooked area when deciding to buy or sell is whether you and your family are prepared for this life changing event.

Please contact me if you, or someone you know, have any real estate needs or questions, or if you want to discuss market conditions. I look forward to working with you or your referrals in the future.