Lancaster PA Real Estate Market - Feb 2008 Review

Here it is, hot off the MLS data for February 2008.  I've crunched the numbers for Lancaster County, PA for you!

Let's get right to it.  Here's what the MLS had to say when comparing last month to February 2007:

For residential properties in Lancaster County, there was a 30% falloff in February sales versus 2007.  Of course that's not great news and, as I've commented in previous articles, I believe that's a reflection of the large number of buyers who are staying out of the market while they watch the reports.  Also, the 2007 numbers include sales to subprime buyers, which was still going on in February 2007 but stopped in fall 2008.  Those buyers are out of luck.  As Jim Crawford of Atlanta reviews in his article on "Alt-A" loans, stated income loans and no-doc loans are next on the chopping block (that's already happening).  Conventional rates continue to be very attractive, despite the recent runup of about a percent from the lows in early February.

Homes going under agreement dropped as well, by %15 versus last February.  Less homes closing, less homes finding a contract.  If you're a seller you should be aggressively reviewing your agent's marketing plan and pricing vs. the competition in your neighborhood and home style... 

New listings in February rose over last year by almost 10%.  More pronounced was the tremendous increase in listings expiring, up to 210 from 139 last year.  Overall, there were 23% more active listings during February '08 versus '07.  Lots of homes on the market, fewer finding a buyer.  Supply & demand in action!

OK, you're probably wondering if I'm going to trot out my list/sale price curve this month.  Of course!

The average sale price in February was $177,281.  That's another 6% down from January's average and the lowest in over a year.  What about list prices for new listings?  February's average was $220,683, down about 1% from January.  The "gap" between the average list price and sale price was $43,402.  That's up almost 20% from January!  Not the right direction to be heading...what's all this mean?  In my opinion, sellers continue to price hoping to catch a rare desperate buyer, and listing agents are still clinging to CMA numbers from a bygone era (last summer).  The good news is that the average list price is coming down in 2008.

As I've said before, I believe that the price "gap" has to close for the local market to click into high gear again.  In that respect, February was not a good month.  However, rates continue to be attractive and, if you are moving, there's plenty of inventory for me to show you!  Give me a call if you'd like more info on Lancaster County homes for sale or any real estate questions.  

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For Lancaster PA homes for sale click here. Jeff Geoghan is a top real estate expert in Lancaster County, PA, and an involved community member. Jeff's work has been featured in the Lancaster Newspapers, WGAL Channel 8, PA Business Journal and Wall Street Journal. Jeff's blog on Lancaster County and its homes is nationally-featured. Contact Jeff for more help with your Lancaster PA Real Estate needs. Jeff is also a photographer - view some of his portfolio. Comments are welcome!