Hello everyone, Eileen Voyles here! I'll be bringing you monthly news from the Sun Country real estate market. This news affects all of us with a roof over our head – whether the roof is owned, rented, mortgaged, large, small, or just plain leaky!

Many of us have felt a crazy case of supply shortage as we've searched for homes this past year. We've been hampered by multiple offers on the same home, bidding wars, or homes sold before we could even see them! Let me explain why:

In the 12 municipalities of Sun Country, our Months of Remaining Inventory, or MRI (the time it would take to sell all of the existing homes currently on the market if sales continue at the current rate), is barely over 1 month, meaning if nothing else were listed, all the homes for sale would be sold in one month. The national MRI is four months. Translation: in our market, we have a quarter of the inventory of homes for sale as our friends around the country.

This makes it tricky to buy.

Gregorio and Olivia Campos of Hummelstown felt this low inventory first-hand. They left Staten Island last spring after accepting jobs in Hershey. They were looking to buy in the Middletown Road area of Derry Township but were beaten out several times by more aggressive buyers.

"One offer we made was nearly full price, but we lost out to another buyer who waived the inspection contingency," Olivia Campos said. "We just couldn't compete with that, coming from out of state."

The Camposes ultimately landed a home by being flexible with dates; their eventual sellers needed flexibility with a move-out date. No problem for the Camposes, who didn't need the home until the fall.

Abu Asaduzzaman, a Derry Township resident, sold his home in Missouri with the hopes of buying in Hershey.

"We are not comfortable renting but it will have to do for now," Asaduzzaman said. "We constantly keep our eye on the market but there is very little to choose from in our $300,000 price range. When something well-priced is listed, it's gone in just a few days."

Besides the dwindling inventory, here are a few statistics I find interesting: Conewago Township's prices are a whopping 17 percent higher now than last year, coming in at a median price of $305,000. That's the highest gain in the area. Derry Township's median home price fell by 6 percent to $235,000. Londonderry Township sold almost every speck of its inventory last year, with 133 homes hitting the market and 131 selling. These homes sold, on average, in 85 days. Last year, eight of our municipalities experienced price increases, three felt price drops, and one stayed the same.

So, where is Sun Country real estate headed for the rest of 2019? I believe it's an opportunistic market for both buyers and sellers:

Mortgage rates are still very, very low. Even with minimal inventory, it's still a great time to buy a home – 30-year fixed rates are locking in under 5 percent. That's cheap money. Being a little less picky and a little more "big picture" minded might help you land a great long-term investment.

If you're ready to sell, do it! There's never been a time (in my professional life, anyway) with less competition on the market. Homes are selling at good prices and quickly – depending on your municipality – in 40 to 111 days. More homes coming to the market this spring would help ease the supply challenge and prices would, therefore, stabilize across the board. In the words of Mark Twain, "Throw off the bowlines. Sail away from the safe harbor."

The median home price in the Northeast rose in 2018 to $286,000. Sun Country's median home price is only $198,415. It's still a great value to purchase a home in our neck of the woods. What an amazing place to live – nice wages, farmland, rolling hills, and Sky Rush roller coaster. What more could we want, right?

I'll be here to answer any and all real estate questions. Send your comments or questions to eileenvoyles@gmail.com or call 717-508-4610.

Let's part today with wisdom from renowned investor Warren Buffet: "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."

Until next time!

https://news.thesunontheweb.com/articles/the-real-scene/