Here we are in March 2023 already!
So what's happening in the real estate market in Lancaster County this year?
The average 30 year fixed home mortgage rate is 6.85%. The average home sales price is $336,371 which is up 12.5% from last year. Home for sale inventory remains low and is down 12.2% from last year. Because of this continued low inventory, home prices are remaingin steady through this year. Homes are staying on the market an average of 23 days, an increase of 10% from last year. Commercial office vacancy rates are up 3%. Homebuilders are still struggling with supply chain issues and concerns with inflation and higher interest rates which are also affecting remodeling projects.
The state of Pennsylvania through PHFA is offering a new closing cost assistance program called K-FIT. K-FIT is a down payment and closing cost assistance that costs consumers nothing and is forgiven over a 10-year period. Clients may receive 5% of the lesser of the purchase price or appraised value with no maximum dollar amount. K-FIT can be paired with the Keystone Home Loan and Keystone Flex Loan Program for homebuyers, allowing them to access additional funding. For more information , visit the PHFA Website or contact your lender.
Dr. Lawrence Yun, the National Association of Realtors chief economist, offered this fore cast. “Things changed in 2022, driven by rising rates from 3% to 7%. This housing cycle we are currently experiencing is very unique. Buyers and sellers are retreating. One would think with buyers retreating, there would be massive amount of homes on the market, with sellers lowering prices, but that is not what we are seeing.” However, prices have really not come down, and the median price is still up, he added. They are not rising as quickly as they once were though.
Yun predicts interest rates will drop to 6% by the end of the year, opening the gates for more buyers to enter the market. Additionally, he predicted that prices of homes will remain stable, with most areas not seeing more than 2% to 3% gains or losses. “We will see fewer multiple offers, but also sellers will not have to drop their prices by much,” he said.
If you are interested in selling and/or buying a home this year, give me a call. I will guide you throught the process of your real estate transaction and protect your interests to achieve the best results for you.