Navigating the Lancaster County, PA Real Estate Market

The February stats have just been released for the Lancaster County residential real estate market. As a full-time active Realtor and team leader of 6 agents, I generally have a good sense of how the market is doing based on the activity level of our team. Lately, I've been saying that the spring market is off to a slow start, things are quieter than I like them to be and we could really use some listings. The February stats show that I haven't been imagining this slow season. 

New listings are down 32.4% compared to February 2022. I should mention that February 2022 was also slow, so we now have an unprecedented low level of listing inventory. The homes that went to settlement in February were down 14% over February 2022. These are homes that went under contract between December and February, which reinforces the sluggish feeling of the market. Homes that went under contract in February were down 13.4% over February 2022. This is no surprise. If there were more than 30% fewer new listings in February, it makes sense that there would be fewer homes pending during the month.

The average sold-to-original list price ratio is 100.3%, which means the average home sold for 0.3% higher than the list price. This makes sense, too. It's been my experience with the offers I've written in February that the market is still extremely competitive for buyers. There are simply far more people interested in buying a new home than there are people interested in selling their home. Too little supply and too much demand creates a seller's market. 

In many ways, this is a continuation of the ramped-up market we've experienced since the beginning of the pandemic. Even without the historically low interest rates, buyers still outnumber sellers. This market is an incredible opportunity for sellers. Prices have not declined. The Median Sold Price of homes in February was 1.9% lower than February 2022, but the year to date average home price is up 2.4%. Demand remains high, making it a favorable market for sellers.

There are opportunities for buyers, as there are in any state of the market. Some homes aren't selling as quickly, and some sellers are making price reductions, which means that buyers can potentially negotiate on price and terms. If buyers act quickly, they can lock down a contract before another buyer jumps in.

Consumer confidence is waning, the banking industry is stressed, and the economy is sending mixed signals, which may be why people are not interested in selling their home right now. According to NAR, the median number of years a seller remained in their home in 2022 was 10 years, up from 8 years in 2021. Between 2000 and 2008 the tenure was only 6 years. Nevertheless, there are still opportunities for both buyers and sellers, even in this unusual market. Seeking guidance from a seasoned professional who has worked through many different types of housing markets can help you can devise a strategy to successfully buy or sell a home. Contact the Lisa Naples Team if you would like to understand how to accomplish your goals in today's real estate market.