Many people are asking how home prices and rents in Lansdale moved in October. To get straight to the point, the biggest change during the month of October was not the home prices themselves, but the cost of borrowing money.

First, let's clarify the reference point. As of early November, the official monthly statistics for October transactions in Lansdale have not yet been fully released.

Therefore, this article is organized by looking at the local data updated in early October and the mortgage rates announced weekly throughout October. You can think of it as a way to check the position of the market in October, rather than a report card for the month.

The most noticeable change is in interest rates. According to Freddie Mac's weekly survey, the average 30-year fixed rate was 6.71% on September 3, but it rose to 7.28% by October 1.

It peaked at 7.40% on October 8 and 15, then slightly decreased to 7.32% on the 22nd and 7.24% on the 29th, finishing the month. Although it has decreased, it is still high compared to the mid-6% range of summer.

I calculated what this number means for actual wallets. Assuming a median transaction price of $379,400 in Lansdale with a 20% down payment and the remainder financed with a 30-year fixed mortgage, the monthly payment for principal and interest at 6.71% would be about $1,961.

Applying the same conditions at 7.40% results in a monthly payment of $2,102. Even if the home price remains the same, that's an additional $140 per month, not including property taxes and insurance.

Now, let's look at home prices. According to data updated by the real estate data site Resideline on October 3, the median transaction price in Lansdale over the past 12 months is $379,400.

The figure from early September was $375,000. This is not a significant change over the month, and with a sample size of 220 transactions, this difference falls within the range of fluctuations.

It's also worth noting that half of the transactions are clustered between $315,000 and $475,000. This narrow price range makes budgeting relatively easier.

The speed at which listings go under contract is still relatively fast. According to the same data, the median time from listing to contract is 13 days, and from contract to closing is 29 days.

However, when looking at the entire county, the atmosphere is somewhat different. According to Realtor.com, the median days on market for Montgomery County listings was 27 days in April, but it steadily increased to 41 days by September.

The number of active listings also rose from 1,028 in April to 1,283 in September. The county's median list price decreased from $549,900 in June to $519,000 in September.

If this trend continued into October, it could mean that buyers have a bit more inventory to choose from and some room for negotiation. Conversely, sellers should be cautious about setting their initial asking price too high, as it increases the risk of staying on the market for a long time.

Now, let's move on to rents. According to RentCafe, the average rent in Lansdale updated on October 2 is $2,069, which is a 1.32% increase from $2,041 a year ago.

By bedroom count, the rents are $1,759 for a 1-bedroom, $2,226 for a 2-bedroom, and $2,790 for a 3-bedroom. It's interesting to note that the rent for a 2-bedroom is almost at the same level as the calculated mortgage principal and interest.

It's important to be aware that different sites report different numbers. Zumper reports the median rent in Lansdale as $1,900, with an annual increase of 6%, showing a steeper rise than RentCafe.

If you are looking for a rental, you can summarize it this way: the overall increase is not significant, so if you are asked for an unreasonable increase upon renewal, you can question the basis for it.

On the other hand, as more people delay buying homes due to high interest rates, the demand for rentals may support rental prices, making it difficult to expect a noticeable decrease in rents.

For those considering investment, the calculations have become tighter. Even if you receive $2,226 for a 2-bedroom rental, with interest rates in the 7% range, it may be challenging to maintain positive cash flow after accounting for principal, taxes, insurance, and repair costs.

Therefore, when evaluating investment returns now, the priority is on how much you can reduce the loan proportion compared to rental income. Those with a larger cash proportion and those heavily reliant on loans may arrive at completely opposite conclusions about the same property.

Local development news is also a long-term variable. This year, a development plan for 74 townhouses and commercial space near the Penbrook SEPTA station has been discussed, and townhouse plans on Church Road have also been brought up in borough council agendas.

Since it will take time for this supply to actually materialize, it won't immediately affect the October market prices. However, if you have been watching areas near transit stations for a long time, it's worth keeping an eye on the approval progress.

If you are currently looking for a home, I would recommend checking the following order: first, look at the actual transaction prices in the same neighborhood over the past three months, then check how many days the property has been on the market.

Finally, compare whether to lock in the current interest rate or request a buy-down to lower the rate with seller credits with your loan officer. The longer properties stay on the market, the more likely such requests will be accepted.

In my personal judgment, October in Lansdale was not a month of fluctuating home prices, but rather a month where the burden of interest rates increased. Rather than waiting for home prices to drop, I believe it is more realistic to aim for refinancing when interest rates go down.

Once the October transaction statistics are compiled, I will revisit whether this analysis was accurate. The figures in this article are based on data from Freddie Mac, Realtor.com, Resideline, RentCafe, and Zumper.