September 12, 2019
Calling All Homebuilders: The Lehigh Valley Housing Market Needs More Supply
The Greater Lehigh Valley REALTORS® (GLVR) reported August data showed another impressive summer month, but also showed how new construction could greatly improve the real estate market – both locally and nationally.
GLVR Members: Click HERE to view the full Market Update report for August 2019.
“As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market,” said GLVR CEO Justin Porembo. “Despite the Federal Reserve lowering its benchmark interest rate, resulting in 30-year mortgage rates declining to 2016 levels, the lack of affordable inventory and the persistence of historically high housing prices have led to lower-than-expected existing home sales.”
Low inventory numbers impact the nation’s overall economy, according to Lawrence Yun, chief economist for the National Association of REALTORS®. “A boost to home building would greatly improve economic growth,” he said. “More free-market prices on construction materials without government interference about where homebuilders have to get their supply will also help produce more and grow the economy. The housing industry cannot grow without more supply.”
That said, as many homeowners refinanced their homes to take advantage of declining interest rates, consumer confidence in housing was reported to be at historically high levels.
“Our real estate professionals continue to monitor the market for signs of imbalances,” said GLVR President Carl Billera. “Although the inventory of affordable homes at this point remains largely stable, it is stable at historically low levels, which may continue to push prices higher and affect potential buyers.”
Notable market stats for August:
New Listings decreased 9.8 percent to 1,014. Pending Sales were up 14.1 percent to 856. Inventory levels shrank 22.4 percent to 1,737 units, leading to a Months Supply of Inventory that dropped 25.0 percent to 2.4 months.
Prices continued to gain traction. The Median Sales Price increased 4.8 percent to $220,000, coming in just below July’s record-setting Median Sales Price of $222,000. Days on Market was up 3.2 percent – just a one-day difference – to 32 days.
In Carbon County, the Median Sales Price dipped to $130,500. Closed Sales and Pending Sales climbed to 74 and 80, respectively. There was a decrease in Inventory, which came in at 334 units.