Why are Prices Increasing in Lancaster Co. , PA ?

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Real Estate Agent with KW Elite
http://activerain.com/droplet/4YvM

Inadequate Inventory Driving Prices Up

Inadequate Inventory Driving Prices Up | MyKCM

The latest Existing Home Sales Report from the National Association of Realtors (NAR) revealed a direct correlation between a lack of inventory and rising prices.

We are all familiar with the concept of supply and demand. As the demand for an item increases the supply of that same item goes down, driving prices up.

Year-over-year inventory levels have dropped each of the last 18 months, as inventory now stands at a 4.0-month supply, well below the 6.0-month supply needed for a ‘normal’ market.

The median price of homes sold in November (the latest data available) was $234,900, up 6.8% from last year and marking the 57th consecutive month with year-over-year gains.

NAR’s Chief Economist, Lawrence Yun had this to say:

"Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017. Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country."

But there is good news about rising prices. More and more homeowners are recovering from a negative equity situation and learning that they are able to sell their homes and either move up to their dream home or downsize to a property that will better suit their needs. Look for these homes to come to market soon.

Bottom Line

Buyer demand continues to outpace the supply of homes for sale. Listing your home in the winter attracts serious buyers who are looking to close the transaction quickly.

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Inadequate Inventory Driving Prices Up
Inadequate Inventory Driving Prices Up | MyKCM

The latest Existing Home Sales Report from the National Association of Realtors (NAR) revealed a direct correlation between a lack of inventory and rising prices.

We are all familiar with the concept of supply and demand. As the demand for an item increases the supply of that same item goes down, driving prices up.

Year-over-year inventory levels have dropped each of the last 18 months, as inventory now stands at a 4.0-month supply, well below the 6.0-month supply needed for a ‘normal’ market.

The median price of homes sold in November (the latest data available) was $234,900, up 6.8% from last year and marking the 57th consecutive month with year-over-year gains.

NAR’s Chief Economist, Lawrence Yun had this to say:

"Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017. Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country."

But there is good news about rising prices. More and more homeowners are recovering from a negative equity situation and learning that they are able to sell their homes and either move up to their dream home or downsize to a property that will better suit their needs. Look for these homes to come to market soon.

Bottom Line

Buyer demand continues to outpace the supply of homes for sale. Listing your home in the winter attracts serious buyers who are looking to close the transaction quickly.

Update your Curent Market Value by obtaining a 25+ page national RPR report . To obtain yours, email mikeperrykw@gmail.com  .
 
Posted by

 

Michael J. Perry

KELLER WILLIAMS Elite

www.lancaster4sale.com  

 

1280 Plaza Blvd. , Lancaster, PA 17601

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Longtime West Lampeter resident and Lancaster County Realtor!

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Topic:
Home Selling
Location:
Pennsylvania Lancaster County Lancaster West Lampeter Township
Groups:
1st Time Buyers
Keller Williams
Keller Williams Realty Referral Group
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Sellers
Tags:
west lampeter real estate news
penn manor real estate news
solanco real estate news

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Rainmaker
2,607,391
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I shared this great info too from KEeping Current Matters!

Jan 03, 2017 07:35 AM #1
Rainmaker
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Bob "RealMan" Timm
Alliance Real Estate - Minot - Minot, ND
Bob Timm, Broker Associate, Alliance Real Estate

Our inventory is the lowest I've seen in a couple of years Michael J. Perry , prices have not gone up yet but they were pretty inflated yet from our oil boom. This spring should be interesting once the new administration reveals it's energy plans (which will GREATLY effect our State).

Jan 03, 2017 07:55 AM #2
Rainmaker
2,451,457
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Michael J. Perry, I know what you mean, we have the same think here in Denver.

Jan 03, 2017 08:47 AM #3
Ambassador
893,807
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Michael, I have been in the business since 1992 and have never seen real estate activity so brisk in December/January.

Jan 03, 2017 10:38 AM #4
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Rainmaker
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Michael J. Perry

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