Lehigh Valley Housing Market: Sellers Wanted

Posted: April 12, 2018
By: Greater Lehigh Valley REALTORS®
The Greater Lehigh Valley REALTORS® (GLVR) reported March data showed a relatively slow start to the spring housing market in the Lehigh Valley, courtesy of the chilly weather and the lack of abundant inventory.

Click HERE to view the full Market Update report for March 2018.

With high buyer activity and current sellers receiving, on average, 98.3 percent of list price, GLVR leadership believes more sellers should feel ready and willing to list.
“Economic indicators such as unemployment rates and consumer confidence are in an improved state, and sellers currently hold the keys in the buyer-seller relationship,” said GLVR CEO Justin Porembo. “Buyer demand has remained strong enough to keep prices on the rise, which should continue for the foreseeable future. Housing is proving its resiliency in a consistently improving economy.”
In March, prices continued to gain traction, with the Median Sales Price increasing 17.6 percent to $200,000. Pending Sales remained steady with a 0.1 percent decrease to 779 (vs. 780 the previous March). Closed Sales saw a drop of 7.9 percent to 595.
Inventory levels shrank 34.2 percent to 1,436 units, leading to a Months Supply of Inventory that dropped 37.5 percent to 2.0 months. Days on Market was down 23.5 percent to 52 days.
The Federal Reserve raised its key short-term interest rate by .25 percent in March, citing concerns about inflation. It is the sixth rate increase by the Fed since December 2015, and at least two more rate increases are expected this year.
“Borrowing money will be more expensive, particularly for home equity loans, credit cards and adjustable rate mortgages, but rising wages and a low national unemployment rate that has been at 4.1 percent for five months in a row would seem to indicate that we are prepared for this,” said Sean LaSalle, 2018 President of GLVR. “Having the financial ability to make a move clearly seems feasible to many eager buyers amidst a healthy economy, whether life events such as marriage, children, employment change or desirable downsizing is the reason for moving.”
In Carbon County, the Median Sales Price decreased to $89,900. Inventory levels shrank 8.5 percent to 279 units. Months Supply of Inventory was down 23.1 percent to 5.0 months. However, Pending Sales climbed to 72, versus 48 the previous March, and there was an increase in New Listings, which hit 81.

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