The Market
329 homes sold in Lancaster County in the month of December, down 2% from December 2010.  Pending Sales, homes that went under contract, increased 7% in December compared to December 2010.  This, along with a lower number of New Listings, has helped further decrease the overall Supply of Inventory of homes for sale.  We have now had 5 consecutive months of improvement for this category.  The lower the Supply of Inventory, the higher demand (and property values) will go. 

Here is another indication that things are improving...December (and November) showed a lower reliance on the entry level homes to carry the market.   Although still the busiest segment of the market, homes selling under the $200,000 price level only accounted for 64% of the number of homes that went under contract and 67% of the number that sold in December, down from the past year average of 70%.  This has helped increase the Average Sales Price from November to December by $9073. 


What's The Going Rate?
RATES ARE STILL VERY LOW….3.75% on a 30 year note.   Here is an example of what the current interest rates (3.75%) can do compared to what is considered the average interest rate (7.0%) for the past 30 years.  Let’s say you can afford a monthly principal and interest payment of $1000.  At the 30 year average interest rate of 7.0%, your $1000 per month could cover a mortgage amount of 150,308.  At today’s current rate of 3.75%, that same $1000 per month could cover a mortgage amount of $216,000.  That is a $65,692 difference in buying power with today’s rates!

Thinking of Buying?
We are starting to see some sustained improvement in the overall economy and in the housing market.  Showing activity is picking up during what is historically considered the slowest time of year.  Curious to know what is currently for sale in your area, click here to receive a Daily Email List of Homes for Sale as they Hit the Market!

Thinking of Selling?
Many people thinking of selling in the near future tend to believe that it is best to wait until warm weather returns before putting their home on the market.  That may be true in years past during better markets, but in the current market, I don’t recommend waiting.  With the interest rates staying so low, buyers would be wise not to wait until the warmer weather to buy.  If you are thinking of selling, now is a great time for us to meet to get things started.  I can walk through your home with you and give suggestions as to how best prepare your home for the market.  Give me a call or Click here to request a Home Value Report.