How Much are Lancaster,PA Homes Really Appreciating ?

By
Real Estate Agent with KW Elite

 

 

Are Lancaster's Home Values Really Overinflated?

Are Home Values Really Overinflated? | MyKCM

Last week, the National Association of Realtors (NAR) released their most recent Existing Home Sales Report. According to the report:

“The median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January’s price increase marks the 71st straight month of year-over-year gains.”

Seventy-one consecutive months of price increases may have some concerned that current home values may be overinflated.

However, at the same time, Zillow issued a press release which revealed:

“If the housing bubble and bust had not happened, and home values had instead appreciated at a steady pace, the median home value would be higher than its current value.”

Here are two graphs that help show why home prices are exactly where they should be.

The first graph shows actual median home sales prices from 2000 through 2017.

Are Home Values Really Overinflated? | MyKCM

By itself, this graph could heighten concerns as it shows home values rose in the early 2000s, came tumbling down and are now headed up again. It gives the feel of a rollercoaster ride that is about to take another turn downward.

However, if we also include where prices would naturally be, had there not been a boom & bust, we see a different story.

Are Home Values Really Overinflated? | MyKCM

The blue bars on this graph represent where prices would be if they had increased by the normal annual appreciation rate (3.6%). By adding 3.6% to the actual 2000 price and repeating that for each subsequent year, we can see that prices were overvalued during the boom, undervalued during the bust, and a little bit LOWER than where they should be right now.

Bottom Line

Based on historic appreciation levels, we should be very comfortable that current home values are not overinflated.

 Now is a great time to own a home with Appreciation being greater than the historical 4% rate ! Email mikeperrykw@gmail.com  to learn more !
 
Posted by

 

Michael J. Perry

KELLER WILLIAMS Elite

www.lancaster4sale.com  

 

1280 Plaza Blvd. , Lancaster, PA 17601

   facebook  Google me  Find us on Google+

Longtime West Lampeter resident and Lancaster County Realtor!

SUBSCRIBE TO MY BLOG VIA EMAIL

Enter your email address:

Delivered by FeedBurner

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Pennsylvania Lancaster County Lancaster Willow Street
Groups:
1st Time Buyers
Keller Williams Active Rain Bloggers
Keller Williams Realty Active Rain Bloggers
Keller Williams
Keller Williams Realty Referral Group
Tags:
cma
appreciation
west lampeter real estate news
penn manor real estate news
solanco real estate news
rpr reports
prices head upward
prices skyrocket
values headed upward
net worth increasing

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
3,412,839
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good afternoon Michael. No time for panic, just do more business and keep going forward. Enjoy your day!

Mar 04, 2018 03:37 PM #1
Ambassador
273,943
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058

We may have further inflation this year, but that will also be "normal."  It feels like we are back on track!  Thanks for the update!

Mar 05, 2018 07:26 AM #2
Rainmaker
335,924
Karen Rice Madison AL Realtor
Keller Williams Realty Madison - Madison, AL
256-348-1527 Call/Text

Michael J. Perry This information, and particularly your second graph should be reassuring to anyone who's worried about current home prices being overinflated.

Mar 21, 2018 08:57 AM #3
Rainer
4,727
Ian Ruzow
Oak Tree Development Group - Lancaster, PA
Ian Ruzow is principal and co-founder of Oak Tree

Very insightful and useful research. Thanks for sharing, Michael!

Mar 28, 2019 06:15 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,856,021

Michael J. Perry

Lancaster, PA Relo Specialist
Ask me a question
*
*
*
*
Spam prevention