Well, Lancaster County Real Estate made it through another year, this a tumultuous one with downturns in home sales virtually every month.  Yet, despite the national doom and gloom, I think it's safe to say that the Lancaster housing market survived intact.  

My local readers have to realize that the stuff you hear on the national news hours and read from Associated Press, etc. does not necessarily apply here.  The Lancaster economy is solid, and positive reports of city revitalization have been drawing new businesses and residents there.  Thankfully, the abuse of variable-rate mortgages and "shady" financing proved to be a minor factor here - not surprisingly given the conservative nature of our county! Unemployment, a bane to areas such as Detroit right now, has been at historic lows in Lancaster County (which continues to be one of the lowest counties in the state).

Most economic factors are positive or at least neutral, giving me an encouraging outlook for Lancaster's real estate market in the coming year.  Yes, the price correction is going to have to run it's course - too many sellers are still expecting to get too much, keeping the housing stock up.  Once the prices take a drop around 5-8% for a month or two, buyers will begin to get excited again.  Hopefully this will take place in the next few months of winter...if so, look for a rebounding spring market!  If the prices remain high, though, the delayed rebound might mess up the market in the spring. 

Right now the average price is about $195,000 from month to month. As I've shown in my recent analyses of this trend, the average is being held up by the high-end market.  Time will tell how the average price is affected.

Overall, I'm looking forward to 2008.  Thanks to all my clients and fellow agents who contributed to my success in 2007...

Happy New Year!