July 12, 2018

Lehigh Valley Home Prices Reaching Toward 2007 Levels

The Greater Lehigh Valley REALTORS® (GLVR) reported June data showed buyer competition manifesting itself into quick sales above asking price.
Click HERE to view the full Market Update report for June 2018.
In June, prices continued to gain traction with the Median Sales Price increasing 3.9 percent to $207,750. This price is nearing the Median Sales Price seen when the housing bubble burst in 2007. Even with higher home prices, sellers are, on average, receiving 98.6 percent of asking price.
 
“Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing,” said GLVR CEO Justin Porembo. “The housing supply outlook is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs.”
 
Closed Sales saw a drop of 8.5 percent to 879. Pending Sales, however, saw a bump of 9.9 percent to 864. Inventory levels shrank 23.1 percent to 1,941 units, leading to a Months Supply of Inventory that dropped 24.3 percent to 2.8 months. Days on Market was down 10.5 percent to 34 days.
 
Sean LaSalle, President of GLVR, noted, “Being quick with an offer is still the rule of the day as the number of days a home stays on the market drops lower. If that wasn't enough for buyers to mull over with each potential offer, being aware of pending mortgage rate increases is once again in fashion.”
 
While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015.
 
Carbon County inventory increased 8.5 percent to 359 units. Months Supply of Inventory was down 10.0 percent to 6.3 months. The Median Sales Price decreased 6.3 percent to $129,500. Pending Sales climbed to 72, versus 59 the previous June, and there was an increase in New Listings, which hit 130.