This past couple weeks has seen the stock market fluctuate almost daily. According to the Sunday News Market Wrap For the week ending November 9, 2007 the Dow Jones Industrial Average is at 13,042.74, which is down 552.36 for the week, and below the high of 14,198.10 we saw earlier this year. This is largely because of the mortgage market problems we began hearing about in the spring.
However, lenders are still making loans. They are requiring borrowers to be better qualified, but interest rates have not spiked up. Homes are still selling in Lancaster County
Overall, home sellers do not enjoy the same market demand they did two, three or four years ago. Buyers are now able to make decisions in a more relaxed fashion, and not worry as much about having to compete with other offers. Sellers must price their homes competitively in the market, or buyers will simply let the seller keep the house.
As of November 7, 2007 Active listings totaled 2,594 in the MLS for Lancaster County (up from 2,590 in October), Under Agreement listings totaled 709 (down from 745 in October), resulting in a ratio of 27.33%. The ratio was 44.61% in July 2007 and 32.90% in September 2007, a decrease in activity. In November 2006 the ratio was 36.15%, in June of 2004 it was as high as 129.8%. On October 3, 2000 the ratio was 26.84%. Considering this information, after a couple years of incredible activity, we are back to a more normal market.
The November issue of House Calls, a publication of the Lancaster County Association of Realtors, indicated that the number of sold homes that settled in October 2007 was 400, a 24.4% decrease from the 529 that settled in October 2006. The number of new listings increased 2.8% from 721 in October 2006 to 741 in October 2007. The average sale price also increased from $186,614 in October 2006 to $195,908 in October 2007, a 5.0% increase.
Mortgage rates have not increased significantly. In fact House Calls reports that fixed rate mortgages are slightly lower than a year ago, but adjustable rates are up slightly.
Prepared by:
J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®
Coldwell Banker HomeSale Services Group
150 North Point Boulevard, Lancaster, PA 17601
717-560-9100 http://www.msollenberger.com/ msollenberger@topproducer.com
Comments(0)