What’s Driving Home Prices in Lancaster, PA?

What’s Driving Home Prices in Lancaster, PA Right Now?

Lancaster, PA has long been known for its unique blend of historic charm and modern convenience. But if you’ve been watching the housing market lately, you’ve probably noticed prices climbing steadily. So, what’s behind this trend? Let’s break down the key factors shaping Lancaster’s real estate landscape.

✅ Current Market Snapshot

Median Sale Price: $280,000 (up 10.7% year-over-year)
Median Listing Price (County): $409,900
Average Days on Market: 13–18 days (homes sell fast, often within 2 weeks)
Sale-to-List Price Ratio: ~101.4% (many homes sell above asking)
Mortgage Rates: Around 6.24% for a 30-year fixed, with some local lenders quoting 6.5%

🔑 Key Factors Driving Prices

1. Limited Housing Inventory

Lancaster County remains a seller’s market. Inventory is tight despite some new construction, and active listings are up only slightly year-over-year. Homes go pending in about 7–14 days, and roughly 41% of sales are above list price.

2. Strong Local & Regional Demand

Buyers from Philadelphia, New York, and Washington, D.C. continue to migrate for affordability and lifestyle. Lancaster ranks among the top 15 hottest markets nationally, with a “hotness score” of 97+ on Realtor.com.

3. Economic Stability

Lancaster County’s economy is solid—median household income is about $83,703, unemployment remains low, and major sectors include healthcare, manufacturing, and tourism. This stability supports buyer confidence.

4. Population Growth & Lifestyle Appeal

The county population grew ~7% from 2010 to 2024 and is projected to add 82,000 residents by 2040. Families are moving to suburban areas like Manheim Township for space and schools, fueling demand for single-family homes.

5. Mortgage Rate Trends

Rates have eased slightly from earlier highs, now averaging 6.24% nationally and 6.5% locally for a 30-year fixed. Even small drops can save buyers $90–$100/month on a $300K home, creating urgency to buy before rates rise again.

6. Quality of Life

Lancaster offers a mix of historic charm, cultural amenities, and proximity to major cities—all at a lower cost than urban centers. Retirees and remote workers are a growing segment of buyers.

📈 What This Means for Buyers & Sellers

For Buyers: Expect competition. Get pre-approved and be ready to act fast—hot homes can sell in 5 days with multiple offers.
For Sellers: It’s still a great time to list. Well-priced, staged homes often sell above asking.

Have real estate questions or need expert advice? Contact Chesko and Cavallo Realty Group today at 717-553-0686 or email us at info@cheskoandcavallo.com. We’re ready to help you every step of the way!