4th Quarter of 2017
Central PA by
Stephen Turner, REALTOR
Consumers have happy feet over employment and wage prospects, on the heels of good economic news. Yet with low inventory and historically low interest rates, Home prices continue to surge.
Data analytics firm CoreLogic reported that home prices nationwide, including distressed sales, surged by 7 percent in September 2017 compared to September 2016. Month over month, sales were up 0.9 percent in September from August. Low inventories continue to be the catalyst driving higher home prices. Looking ahead, prices are expected to rise 4.7 percent from September 2017 to September 2018. Here in central PA home inventory is at a record low, and builders in our area have been having strong sales this fall including a record-breaking performance in October.
Although the Consumer Sentiment Index declined slightly in early November, it remained at its second-highest level since January with a preliminary reading of 97.8, per the University of Michigan report. An improving labor market was spontaneously mentioned by a record number of consumers, and anticipated wage gains recorded their highest two-month level in a decade. These favorable trends were countered by expectations that inflation and interest rates will increase during the year ahead.
In a week light on economic data, headlines were dominated by rising tensions in the Middle East, which pushed oil prices to two-year highs, and tax reform proposals out of Washington, which kept investors on guard. Record-high Stock prices weighed on Bond prices throughout the week, though home loan rates remained just above all-time lows.
Bottom line, Central PA is a strong sellers’ market right now. While it’s been customary in our area to take your home off the market during the Holiday season of Mid Nov – Early January, I would encourage anyone serious about getting top dollar for your home to list now or remain listed. For buyers, my advice is: don’t wait! If you see a home you like, buy it or go place an order with your local builder. Either way, with low inventory and raising rates on the horizon all this point to you paying more tomorrow then you would today.
Steve Turner has been a full-time Real Estate professional since 1997. Having helped over a thousand, seller, buyers and builders combined over the years, he understands and has his finger on the pulse of the market. As a partner with Coldwell Banker Residential Brokerage, Steve has joined the largest broker on the entire east coast and the World's Strongest Brand in Real Estate. When looking to list, buy or build your home, inquire about how Steve Turner can help you navigate the real estate market of today.