July 11, 2017
Homes Sales Move Quickly as Inventory Drops, Prices Rise
The Greater Lehigh Valley REALTORS® (GLVR) reported June data shows that the inventory slump is driving up home prices and sellers are almost always receiving asking price.
Click HERE to view the full Market Update for June 2017.
“There is strong demand for home buying, emphasized by higher prices and multiple offers on homes for sale,” said GLVR CEO Justin Porembo. “As has been the case for month after month – and now year after year – low inventory is the primary culprit for any sales malaise rather than lack of offers.”
According to the June data, inventory levels shrank 40.3 percent to 2,255 units, again leading to an increase in home prices. The Median Sales Price increased 11.2 percent to $200,000 – up a staggering $20,100 from one year ago. Due to multiple offers on homes for sale, sellers saw 98.2 percent of List Price Received.
Once homes were listed, they didn’t stay available for long. Days on Market was down 33.9 percent to 37 days. Months Supply of Inventory was down 43.1 percent to 3.3 months.
“With job creation increasing and mortgage rates remaining low, the pull toward homeownership is expected to continue,” said Cass Chies, President of GLVR.
However, Chies noted, housing starts have been drifting lower, and some are beginning to worry that a more serious housing shortage could be in the cards if new construction and building permit applications continue to come in lower in year-over-year comparisons while demand remains high.
“We are seeing pockets of new construction in the Lehigh Valley,” Porembo added. “Homebuilder confidence is on the rise, so predictions of a gloomy future should be curbed for the time being.”
In Carbon County, Closed Sales were down 19.7 percent. Pending Sales, however, were up 23.1 percent. Inventory levels shrank 36.5 percent to 297 units. Months Supply of Inventory was down 37.4 percent to 6.2 months.