The Greater Lehigh Valley REALTORS® (GLVR) reported May data showed some continued odd statistical increases, skewed by real estate being shut down in Pennsylvania for 19 days of May in 2020, and also showed a not-so-surprising record that was broken.
GLVR Members: Click HERE to view the full Market Update report for May 2021.
“As the weather warms and pandemic restrictions ease across our state, the Lehigh Valley housing market shows little sign of cooling,” said GLVR CEO Justin Porembo. “Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows in our area and across the country.”
The low inventory – levels in May shrank 46.1 percent to 667 units – led to the lowest Days on Market ever recorded: 15 days.
Is there relief to the fast-paced buying and inventory deficit? Unlikely right now, due to a few factors, according to GLVR President Tim Tepes.
“With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand,” Tepes said. “However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. While the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.”
With data now available for the month of May, Northampton and Lehigh counties saw increases and decreases where expected, including:
- New Listings increased to 994.
- Pending Sales were up to 940.
- Closed Sales bumped up to 649.
- Months Supply of Inventory was down 60.0 percent to 0.8 months.
- Percentage of List Price Received went above and beyond, increasing 4.2 percent to 102.7 percent.
- Median Sales Price went up 16.6 percent to $250,000.
In Carbon County, which continues to show a healthy amount of housing-related activity, the Median Sales Price increased to $195,000. Closed Sales were up to 53. Pending Sales increased to 84. New Listings dipped slightly to 89. Inventory dropped to 97 units, leading to a Months Supply of Inventory of 1.2 months. Homes are moving much faster for the association’s more rural county, with Days on Market dropping to 20 days vs. 75 days the previous May.