It's no secret that there is currently a lot of fear and uncertainty in the real estate market at the moment. It doesn’t help that the narrative the media is pushing right now is that we are likely going to see a market crash. However, most real estate professionals do not believe this to be the case. The reason for this is due to a lack of inventory on the market. In a healthy market we typically see the monthly inventory around 6 months. At the moment we are sitting right around 1 month worth of inventory. What this means is that there are not many homes currently available for buyers to choose from which in return draws demand up.
With interest rates going up the market has certainly started to stabilize. We are seeing less and less bidding wars per home and not every home is going for 30k or more over asking anymore (of course you get your 1 offs here and there though). Since August we have actually seen a decrease in the median sales price of homes in Lancaster. For sellers it is important to understand that the market has changed drastically over the course of the last 2 months alone. You are not able to list your home for crazy high numbers and get away with it anymore. We can see proof of this from the number of price reductions we’ve seen lately. In the last week alone we saw 64 price reductions in Lancaster County alone! It is important to sit down with a realtor and let them educate you and guide you through this changing market so that you can be successful buying or selling. The current outlook on the real estate market in Lancaster, PA is that we will see prices and interest rates gradually increase throughout the early portion of 2023 and then interest rates should start to go back down around Q2 of next year. Of course things can change as we gather new information but I will be sure to update you along the way. If you have any questions on anything or know anyone who might need some assistance buying or selling just let me know!
