We see continued strengthening in the local real estate market in the last month. The numbers from my March 6, 2008 search in the Lancaster County MLS indicate the following:
Active Listings Under-Agreement Listings Ratio
March 6, 2008 2,403 745 31.00%
February 2, 2008 2,340 576 24.62%
January 5, 2008 2,273 484 21.29%
December 7, 2007 2,509 606 24.15%
November 7, 2007 2,594 709 27.33%
October, 5, 2007 2,590 745 28.76%
From February 1, 2008 through February 29, 2008 my search in the MLS indicates 927 homes went Under-Agreement. During the same period a year ago there were 1,045 homes that went UA. That's only an 11.29% reduction in a market activity, where national news is reporting areas that declined 40% in market values. Market activity is not the same as market values, but with market activity being only 11.29% less, we are able to enjoy much more stability than many areas of the country and are not seeing the large value declines of other areas.
Activity with buyers I am working with has been good. In the last month, three buyers I am working with have each come to an agreement with sellers for the purchase of a home. Of those people selling, one is an investor selling a vacant rental property. Another is a couple looking to buy a new home. And the third is a single person moving because of the desire to live in a different community.
The Fed continues to express willingness to reduce rates, and yet it is watching for inflation because of the higher prices showing up on consumer products due to higher fuel prices. The bond market takes all the information in and processes it to arrive at bond pricing, which impacts consumers borrowing cost (Mortgage Interest Rates). Interest rates have moved around recently, but are still low by historical standards. Recently an 84 year old client mentioned that when they bought their home in 1949 they paid interest at a rate of 7%. We are still below that rate. In the last 30 years, rates have not been much lower than they are now.
As I mentioned last month, buying now can enable you to take advantage of the lower rates and enjoy the benefits of that throughout the time you are paying on the mortgage, saving you many hard-earned dollars.
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
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