Low Inventory Continues to Support Rising Home Prices
The Lancaster County real estate market continues to be shaped by one of its biggest challenges: low inventory. Even as we move into the fall market, there still aren’t enough homes available to meet buyer demand.
September’s numbers show that homes are selling faster than they did a year ago, while prices continue to rise. The number of settled sales was down slightly, but that appears to be more a reflection of limited supply than a lack of buyers.
Lancaster County Real Estate Market Stats – September 2026
- Settled Units: 441 homes sold (down 2% from 454 last year)
- Median Days to Sell: 8 days (down 11% from 9 days)
- Average Sales Price: $415,586 (up 2% from $404,756)
- Average Interest Rate: 6.8% (up from 6.3%)
These numbers continue to point to a seller’s market, with limited inventory keeping competition strong despite somewhat higher mortgage rates.
Low Inventory Remains the Biggest Story
The slight decline in the number of homes sold shouldn’t be interpreted as a significant drop in demand.
If anything, the other numbers tell a different story. Homes are selling one day faster than last year, and the average sales price is up 2%.
The bigger issue continues to be supply. There simply aren’t enough homes coming onto the market to satisfy all of the buyers who are looking.
That means:
- Homes are selling in just 8 days
- Average prices have increased 2%
- Buyers continue to compete for desirable properties
- Higher interest rates haven’t eliminated demand
What This Means If You’re Selling a Home
For homeowners considering selling, the market continues to offer favorable conditions.
Low inventory means less competition. There are still relatively few homes competing for buyers’ attention, particularly for homes that are priced appropriately and in good condition.
Homes are selling quickly. The median time to sell fell from 9 days to 8 days, showing that buyers continue to act quickly when the right property becomes available.
Prices continue to increase. The average sales price reached $415,586, a 2% increase from last September.
If you’ve been considering selling, low inventory continues to give sellers an advantage. Pricing your home correctly remains important, but there is still strong demand for desirable properties.
What This Means If You’re Buying a Home
The biggest challenge for buyers remains finding the right home.
Even with mortgage rates increasing from 6.3% to 6.8%, homes are actually selling faster than they were a year ago. That’s a good indication that demand hasn’t disappeared simply because borrowing costs have increased.
Buyers should:
- Get fully pre-approved before beginning their search
- Be prepared to act quickly when a desirable home comes on the market
- Expect competition for well-priced homes
- Focus on what they can comfortably afford rather than waiting for a dramatic change in rates
While higher rates affect monthly payments, waiting for rates to fall could also mean competing with more buyers if lower rates bring additional demand into the market.
Looking Ahead to the Fall Market
Fall typically brings some seasonal slowing to the Lancaster County housing market, particularly as we move past the summer selling season.
However, low inventory could limit the normal seasonal slowdown.
If fewer homeowners choose to sell while buyers continue looking, the imbalance between supply and demand will remain. That should continue to provide support for home values and keep competition strong for desirable properties.
Thinking About Buying or Selling in Lancaster County?
Whether you’re thinking about selling this fall or planning a move in the next year, understanding the local market can help you make a better decision about timing and strategy.
If you’d like to know what your home could sell for in today’s market or discuss what it would take to successfully buy in Lancaster County, I’m always happy to help.
