Here are the numbers from my October 4, 2008 searches in the Lancaster County MLS:
Active Listings UA Listings Ratio 2007 Ratio 2001 Ratio
October 4, 2008 2,879 652 22.65% 28.76% 33.36%
September 6, 2008 2,819 680 24.12% 32.90% 35.99%
August 9, 2008 2,852 714 25.04% 41.02% (not recorded)
July 5, 2008 2,736 798 29.17% 44.61% 39.34%
June 3, 2008 2,664 886 33.25% 49.34% 41.86%
May 6, 2008 2,638 922 34.95% 48.47% 43.30%
The Stock Market has declined significantly recently. Yesterday the Dow Jones Industrial Average declined 514 points to 8,519, after reaching its all time high of over 14,000 just over a year ago on October 9. That is an approximately 40% decline from its high last year. Today at 2:00 PM the DJIA is down over 170 points again. Recently several large banks and financial firms have failed, and more are expected.
The Good News!
Congress passed the legislation to fund the banking system, the "bailout". Steps are being taken to restore confidence among banks, with the intent being to encourage lending to help consumers and businesses have the resources they need to conduct business. The Fed has injected vast quantities of money into the financial systems, and central banks in other countries have done the same. With all of this money injected into the system, I believe that when the economy resumes its growth, we will see significant activity in housing and other industries. I believe there is now pent-up demand, where people have chosen to not move now, but when things look better will follow through with their plans.
Other good news is that oil prices have dropped from a high of approximately $145/barrel in early summer to $96/barrel in September and to $68/barrel at approximately 2:00 PM today. Interest rates are in the 6% to 6.5% range for 30 year fixed rate mortgages. There are lenders offering loans. In two weeks the election will be over. It may be that counting ballots will still have us in suspense, but the campaigning will be over.
Recently we have seen buyers seeking bargains in the housing market, but sellers are not always agreeing to lower prices and are holding their properties in anticipation of things getting better. That alone is a positive indicator of belief in the future.
Like I mentioned in September, oil prices, and interest rates are down, people are getting married and starting families. That makes now a great time to buy a property!
Prepared by: J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®
Prudential Homesale Services Group
150 North Point Boulevard, Lancaster, PA 17601
717-560-9100 www.msollenberger.com msollenberger@topproducer.com
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