2009 First Quarter Central Pennsylvania Real Estate Report
The first quarter of 2009 showed some stability in the real estate market when compared to the similar period in 2008. Although the number of transactions are down by 20% and the average sales price declined by 3%, these numbers are an improvement with respect to the declines that we experienced in the last quarter of 2008. The average sales price overall declined from $184,860 to $178,519 and the average sales price in March 2009 declined from $187,896 to $183,638. The average days on market increased slightly in both periods and it is returning to what I would call more normal times of the late 1990’s and the early 2000’s.
One of the most striking changes is the percentage of loans being initiated by FHA and VA. This percentage increased from 35% in 2009 from only 14% in 2008. This is a good indication since both entities have stepped up to the plate when conventional lending sources were not available, and this trend will continue for a while longer.
But there is some very good news in the market today. 30 year conventional first mortgage rates are still near 5% and, at least in the short term, that should be the going rate. Also, lenders are really attempting to assist buyers in this market to find a mortgage program that fits the borrowers’ requirements. And although the above quarterly sales numbers to many look bleak, the number of pending sales has increased by about 20% since the end of 2008. And although we haven’t completely turned the corner, it is my opinion that we are beginning to see that both buyers have a vehicle to purchase a home at very attractive interest rates and sellers are going to experience more potential buyers for their homes going forward this year.
Below is information on selected municipalities in the region and is reflective of only residential properties and does not include land, investment or commercial properties.
Average Sales Price/ First Quarter
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West Shore
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Municipality |
2008
|
2009
|
Days on Market
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Camp Hill |
$217,223
|
$197,091
|
76/93
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Mechanicsburg |
$162,568
|
$145,958
|
51/67
|
Shiremanstown |
$144,933
|
$150,000
|
59/47
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Lemoyne |
$156,983
|
$112,469
|
36/32
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East Pennsboro |
$200,724
|
$171,440
|
54/58
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Hampden Township |
$278,272
|
$247,573
|
78/98
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Silver Spring Township |
$255,771
|
$258,366
|
77/67
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Upper Allen Township |
$266,410
|
$203,963
|
76/85
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Lower Allen Township |
$174,730
|
$206,434
|
44/73
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Fairview Township |
$258,348
|
$270,124
|
82/71
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East Shore
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Lower Paxton Township |
$226,358
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$235,288
|
61/88
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Derry Township |
$250,125
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$216,241
|
58/75
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South Hanover Township |
$189,774
|
$304,936
|
104/86
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Susquehanna Township |
$166,728
|
$162,876
|
57/89
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Swatara Township |
$166,896
|
$147,536
|
80/64
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Paxtang |
$140,500
|
$119,475
|
77/86
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Hummelstown |
$161,540
|
$136,543
|
57/102
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East Hanover Township |
$149,000
|
$265,250
|
50/75
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West Hanover Township |
$238,728
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$213,928
|
95/119
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Information received from the Central Penn Multi List and deemed to be correct. The information on the sales has been selected from Dauphin, Cumberland and Perry Counties and portions of Lancaster, Lebanon and York Counties.